Defendants shall be punished by a fine of KRW 15,000,000.

The Defendants did not pay the above fines.

Punishment of the crime

Defendant

A is the representative of the E-Medical Board in D, and Defendant B is the president of the E-Medical Board.

In operating a sanatorium, the Defendants received subsidies under the name of "business of functional reinforcement of welfare facilities for older persons in 2013", and prepared and submitted an application for welfare facilities for older persons with disabilities and subsidies for older persons with disabilities on September 30, 2013 (the national expenses of KRW 33 million, local expenses of KRW 33 million, and local expenses of KRW 33 million).

The conversion between items is strictly prohibited even if the subsidy under the Act on the Management of Subsidies is used for any purpose other than the approved purpose, or is within the approved purpose.

Nevertheless, the Defendant: (a) voluntarily released all of the subsidies that he received on September 30, 2013, KRW 45 million, and KRW 21 million on October 1, 2013; and (b) embezzled such subsidies by using them for purposes other than monthly salary, public charges, and debt collection purposes of employees.

(b) A subsidized project operator in violation of the Subsidy Management Act shall carry out the subsidized project in good faith with the care of a good manager in accordance with the provisions of the legislation, the details of the decision to grant subsidies, or the disposition by the head of a central government agency under the legislation

Nevertheless, the Defendants used the subsidy of KRW 33 million for any purpose other than the decision to grant the subsidy, among the subsidy of KRW 66 million received as mentioned in the above paragraph (a).

Summary of Evidence

1. Defendants’ respective legal statements

1. Written accusation of the Jeju market: Submission of an application for issuance of a project to reinforce the welfare functions of older persons in 2013, such as the Act on the Management of Subsidies, etc., the accusation against violators, the F and G written confirmations, G confirmations, the decision to grant equipment reinforcement subsidies in 2013 and the issuance of such subsidies

1. Statement of each police statement concerning G and F;

1. A report on investigation (related to the use of subsidies for purposes other than the original purpose);

1. Application of Acts and subordinate statutes to a commission and a reply of A;

1. Criminal facts;