1. The summary of the facts charged is the representative director B (hereinafter “B”).

On October 2013, the Defendant entered into an agreement with D (hereinafter “D”) on “C” task and received KRW 8.5 million from the Government’s contribution.

Subject to the development of new items by step by dividing the total of 11 items of the three business years into one-year unit, the research funds can only be used for the development of this case, and the remaining balance after the purchase was managed separately from the funds for other purposes, and the remaining amount after the purchase should be returned, and the said funds should be managed so as to be used only for the above business.

Nevertheless, around December 24, 2013, the Defendant purchased parts not necessary to develop the designated items in the task at the B office located in Yeongdeungpo-gu Seoul Metropolitan Government as research funds, and embezzled them by arbitrarily using contributions of KRW 43,236,900, total amount of KRW 71,000, as shown in the attached Table of Crimes, from around April 27, 2015, for the purpose of selling parts and using them as parts for replacement, and by mixing parts purchased at the Defendant company with the inventory of parts for sale and for replacement and parts purchased at the above research funds.

2. Determination

A. The following facts and circumstances can be acknowledged according to each evidence adopted by this Court through legitimate procedures:

① On July 16, 2015, and July 17, 2015, D performed an audit as to whether the instant government contributions are lawfully used by visiting B to compare account books with equipment and actual objects.

D Employees F, etc. were excessively deteriorated in the course of visiting and investigating, and the quantity of certain items is more than necessary, and some.