All appeals and supplementary appeals are dismissed.

The costs of appeal and supplementary appeal shall be borne by each party.

The grounds of appeal are examined.

1. As to the Defendant’s first ground of appeal

A. The main sentence of Article 72(1) and Article 2 subparag. 9 of the State Property Act stipulate that a person who uses, benefits from, or possesses any State property (including a person who continues to use, benefits from, or occupies any State property without permission for use or loan contract after the expiration of the period for the loan contract) shall collect indemnity equivalent to 120/100 of the loan charges or usage fees for the State property, in cases where the possession, use, or benefit from the State property is carried out without legal title, the ordinary loan charges or usage fees cannot be collected in lieu of the loan charges or usage fees. Thus, the provision does not apply to the person who is in a legal position to justify the possession, use, or benefit from the State property. The imposition of indemnity against such person shall be null and void as a matter of course.

(Supreme Court Decision 2007Da51536 Decided December 13, 2007, and Supreme Court Decision 2014Da229986 Decided June 28, 2016, etc.) B.

Article 42(1) of the State Property Act (wholly amended by Act No. 9401, Jan. 30, 2009; hereinafter the same shall apply) provides that the office of general administration may delegate part of the affairs concerning administration and disposal of the general property under its jurisdiction to public officials belonging to the office of general administration, the head of central government agency or public officials belonging thereto, the head of local government or public officials belonging thereto, or entrust them to government-invested corporations, financial institutions, investment traders or investment brokers, or corporations established under special Acts and prescribed by Presidential Decree. Article 38(2) of the former Enforcement Decree of the State Property Act (wholly amended by Presidential Decree No. 24495, Apr. 5, 2013; hereinafter the same shall apply) provides that the office of general administration shall perform the affairs concerning administration and disposal of the property