All appeals by the Defendants are dismissed.

1. Summary of grounds for appeal;

A. Matters concerning labeling or labeling of cosmetics prohibited from being damaged under Article 16(1)4 of the Cosmetics Act refer to essential labeling or labeling prescribed in Article 10 of the Cosmetics Act.

However, Defendant A’s damage does not constitute an essential description indication as “management number” under Article 10 of the Cosmetics Act.

B. The number recorded at the lower end of the product at issue of mistake of facts does not constitute “manufacturing number” as stipulated in Article 10 of the Cosmetics Act as an essential description or labeling.

2. Determination

A. The Cosmetics Act was enacted to contribute to the improvement of national health and the development of the cosmetics industry by prescribing matters concerning the manufacture, import, sale, export, etc. of cosmetics, the scope of labeling and labeling of cosmetics prohibited from damage under Article 16(1)4 of the Cosmetics Act.

The main sentence of Article 16(1) of the Cosmetics Act provides that "no person shall sell, store or display any of the following cosmetics for the purpose of sale, or store or display them for the purpose of sale." Article 16(1)4 of the same Act provides that "a person who has damaged (excluding cases necessary for selling customized cosmetics) or forged or altered matters concerning packages, entries or labeling." Article 36(1)4 of the same Act provides that "a person who violates Article 16(1)4 shall be punished by imprisonment with labor for not more than three years or by a fine not exceeding 30 million won."

On the other hand, Article 2 subparagraph 8 of the Cosmetics Act defines “labels” as “lick numbers or diagrams written on containers and packages of cosmetics,” and Article 10(1) of the Cosmetics Act indicates that the name of the business operator, trade name of the business operator, and Article 2 subparag. 16 of the Standards for Quality Control of Excellent Cosmetics Manufacturing and Quality (Public Notice No. 2015-58 of the Ministry of Food and Drug Safety) or “mination number” indicates that all matters concerning manufacturing management and shipment can be verified for certain manufacturing units.