The prosecutor's appeal is dismissed.

1. According to the summary of the grounds for appeal (misunderstanding of facts and misapprehension of legal principles), all relevant evidence and relevant legal principles, the court below erred in finding the Defendant not guilty of the facts charged due to misunderstanding of facts and misapprehension of legal principles, although it can be recognized that the Defendant acquired subsidies as stated in the facts charged and received the State expenses by unjust means.

2. Determination

A. A. Around January 2012, the Defendant established E Co., Ltd. (hereinafter “E”) for the purpose of distributing, processing, and selling the DNA agricultural products located in the YY-gun, North Korea.

E was designated as a prospective social enterprise for agricultural food type by the Ministry of Agriculture and Forestry on July 18, 2012, and was selected as a financial support enterprise on September 12, 2012, and was supported by G business subsidies as personnel expenses.

However, in fact, E was not entitled to subsidies because it was merely a natural healing center where cancer patients recover and receive medical care without business permission under the Food Sanitation Act for the distribution, processing, and sale of agricultural products or employment or production facilities.

Nevertheless, the Defendant received subsidies of KRW 2,198,40 in total from 19 times to 10 March 10, 2014 as the monthly personnel expenses for five persons, including F, etc. around October 9, 2012, and received subsidies of KRW 81,006,640 in total from the Standing Military Administration, and received subsidies of KRW 64,361,462 in an unlawful manner, as shown in the list of crimes in attached Table 19 to October 10, 2014, and received subsidies of KRW 81,006,640 in total from the Standing Military Administration.

B. The lower court’s determination is based on the following circumstances acknowledged by the evidence duly adopted and investigated by the lower court, namely, ① the Social Enterprise Promotion Act does not stipulate “production facilities” as the requirements for “social enterprises” and the requirements for “preliminary social enterprises”.