On February 25, 2014, the Defendant obtained authorization for the establishment of a “C kindergarten” in Busan Metropolitan City B, and operated it from that time.

1. An operator of a private school in violation of the Private School Act shall manage tuition fees or other money due received by a school in a separate account with the income of school expenses, and shall not transfer income or property belonging to the accounts of school expenses to any account other than other accounts, i.e., the accounts of the school concerned, which are not directly required for the education of the school concerned;

Around July 8, 2014, the Defendant used 1,390,460 won, out of tuition fees and other charges received from the guardians of kindergarten C, a private school, for the purpose of repaying the personal loan obligations owed by the Defendant during the new establishment of C Kindergarten, from June 9, 2014 to July 26, 2018, as indicated in attached Table 1, in total of KRW 1,122 times in the accounts of school tuition fees and other charges collected from each of the above four separate accounts (Account Number E, F, G, and H), from the kindergarten at around that time, and repaid the Defendant’s personal loan charges and other charges.

Accordingly, the Defendant transferred income belonging to the accounts of school expenses to other accounts as above.

2. A business operator who receives subsidies for violation of the Subsidy Management Act or occupational embezzlement shall faithfully perform the subsidized projects with due care as a good manager in accordance with Acts and subordinate statutes, the details of the decision to grant such subsidies, or the dispositions of the head of a central government agency under Acts and subordinate statutes, and shall not use such subsidies for any other purpose, and shall refund interest accrued therefrom, if a subsidized business operator has used such subsidies for other purposes;