All appeals are dismissed.

The costs of appeal are assessed against the defendant.

The grounds of appeal are examined (to the extent of supplement in case of supplemental appellate briefs not timely filed).

1. Whether the status of the previous temporary director is extinguished due to a report on the appointment and dismissal of the regular directors by the competent administrative agency on acceptance (ground of appeal No. 1)

A. The key issue is whether the status and authority of the previous temporary director is extinguished finally in the situation where the head of Gangnam-gu, on February 18, 2009, the head of Gangnam-gu did not make a report on the appointment of and acceptance for regular directors against the defendant and did not explicitly take a measure to dismiss the previous temporary directors.

B. (1) The former Social Welfare Services Act (amended by Act No. 10997, Aug. 4, 2011; hereinafter “former Social Welfare Services Act”) provides for the supplementation of executives and employees of social welfare corporations as follows.

A social welfare foundation shall have five or more directors including the representative director and two or more auditors (Article 18 (1)), and where a social welfare foundation appoints or dismisses executives, it shall report such appointment or dismissal to the Minister of Health and Welfare without delay pursuant to the Ordinance of the Ministry of Health and Welfare

(Article 18(5). If a vacancy occurs in the office of directors or auditors, it shall be filled within two months (Article 20(1)), and if a social welfare foundation fails to fill the vacancy within the prescribed period, the Minister of Health and Welfare shall, without delay, appoint a provisional director upon the request of an interested person or ex officio.

(2) Article 20(2) of the former Enforcement Rule of the Social Welfare Services Act (amended by Ordinance of the Ministry of Health and Welfare No. 147, Aug. 3, 2012; hereinafter “former Enforcement Rule of the Social Welfare Services Act”) stipulates that a social welfare foundation intends to report the appointment and dismissal of an executive officer, a copy of the meeting minutes of the board of directors’ resolution on the appointment or dismissal of the relevant executive officer, a written consent to the appointment or dismissal of the executive officer, a resume, and a relationship between the executive officers under the attached Form