All appeals by the Defendants are dismissed.

1. Summary of grounds for appeal (misunderstanding of facts and improper sentencing);

A. Fact-misunderstanding (Defendant A) ① does not spread false facts to identify the principal agent of the victim company as its own company; ② Defendant A merely talked on the basis of facts and did not indicate false facts; ③ Defendant A merely talked with lower-ranking owners recruited by the victim company’s public intent for the purpose of informing the victim company’s management situation and product risk. Thus, Defendant A did not intend to defame and interfere with the victim company’s business.

Nevertheless, the judgment of the court of first instance which pronounced guilty against Defendant A is erroneous by misunderstanding facts, which affected the conclusion of the judgment.

B. Each sentence sentenced by the first instance court (defendant A): imprisonment with prison labor for 6 months; suspension of execution for 1 year; Defendant B: fine of 3,00,000) is too unreasonable.

2. Determination

A. In full view of the following circumstances admitted by the evidence duly admitted and investigated by the first instance court and the first instance court as to the same purport of the Defendant’s assertion of mistake as to the same fact-finding, the Defendant A may sufficiently recognize the fact that, for the purpose of establishing an association or company under competition with the victim company, the Defendant A has damaged the reputation by intentionally pointing out false facts about the executives or products of the victim company and interfered with the business of the victim company.

Therefore, Defendant A’s assertion of mistake is without merit.

1) Defendant A operated N, a total sales store selling the victim’s products from January 2012.

Defendant

A had the position of a standing director and was in charge of the management of a franchise agency incorporated under the above general sales store. A received 35% of the total sales of the sales store as “management non-paid allowance”, and 3% of the total sales as “bner allowance.”

2) The management of the victim company.