The defendant's appeal is dismissed.

Summary of Grounds for Appeal

It is true that the defendant was unable to pay the price normally to the purchasing agency from the date stated in the facts charged, or to supply steel materials to the selling agency. However, this is due to the rapid increase in the steel prices around December 2016, which was unexpected by the defendant.

② Prior to the instant case, the Defendant had transacted with the victims for a long time. At the time of the instant case, the Defendant paid to the purchaser most of the prices received from the seller as the price for goods.

In addition, approximately KRW 1,670,000,000,000,000,000 from company funds, steel stocks, Defendant personal funds, etc., were paid to the purchaser.

In light of this point, it should be deemed that there was no intention of fraud because the defendant had intention to repay or ability to repay.

③ In steel distribution business, there are frequent cases where transactions are conducted by prior settlement for liquidity security. As such, it cannot be deemed that the Defendant deceivings the other party by an abnormal transaction method with the seller by means of prior settlement.

Nevertheless, the judgment of the court below that found the defendant guilty on the charge by recognizing the willful negligence of defraudation, is erroneous in the misapprehension of legal principles, which affected the conclusion of the judgment.

The court below's decision on the grounds of unfair sentencing (three years of imprisonment) is too unreasonable.

Judgment

In full view of the facts and circumstances set out in Chapters 8, 13, and 17, and the facts and circumstances set out in the judgment of the court below, which are acknowledged by evidence duly adopted and examined by the court below as to the assertion of mistake of facts and legal scenarios, and the following facts and circumstances newly admitted by the court below, the defendant may not be able to pay or supply steel products and steel products, even if the defendant is supplied with steel products or received in advance from the victims of the horses.