All appeals by the defendant and the prosecutor are dismissed.

1. Summary of grounds for appeal;

A. Defendant 1) Although there was intent and ability to pay the price at the time of the delivery of the goods from the victims of misunderstanding of the fact, it was impossible for other creditors to pay the price due to changes in circumstances, such as provisional attachment of the Defendant’s claim against the Defendant’s Public Procurement Service after receiving the delivery.

2) The sentence of the lower court’s improper sentencing is too unreasonable.

B. The Prosecutor’s sentence of the lower court is too unhued and unreasonable.

2. Determination

A. Comprehensively taking into account the facts and circumstances acknowledged by the evidence duly adopted and examined by the lower court regarding the Defendant’s assertion of mistake, the lower court may acknowledge the fact that the Defendant, even if the Defendant received each commodity from the victims, had the intent or ability to pay the price, and could have led the victims to mistake, so the Defendant’s assertion of mistake is without merit.

1) The Defendant Company had experienced managerial difficulties since before the Defendant had received each of the goods from the victims due to the following reasons.

① When the Defendant Company underwent financial difficulties in November 201, 201, W Co., Ltd. (hereinafter referred to as “Co., Ltd.”), which was a related company, the Defendant Company provided 400 million won funds from Defendant Company, but did not collect the said loans as the said Company did not go into bankruptcy. In fact, the Defendant Company provided 400 million funds in total at two affiliated companies in a default situation, but did not recover the said loans.

② In 2012, the Defendant’s company concluded a sales contract with X, a special relationship in X, and paid 15% or 20% of the contract amount to X as business allowances, and 10% of the company’s net profit was donated to religious organizations to obtain considerable amount of funds.

③ For the foregoing reasons, creditors’ pressure on repayment of funds and obligations to financial institutions.