The judgment below

The guilty portion shall be reversed.

Defendant

A shall be punished by a fine of KRW 10,000,000.

Defendant

A above.

1. Summary of grounds for appeal;

A. Defendants 1) were changed to N Co., Ltd. (O on May 7, 2014; hereinafter “N”).

(2) Defendant A, a representative director, has the obligation of KRW 690 million to Defendant A, and Defendant A appropriated KRW 690,000,000,000,000 for Defendant A’s loan of KRW 950,000,000,000 for Defendant A’s repayment of the obligation to Defendant A’s N, which is valid as a performance of the company’s obligation within the representative director’s authority and has no intent to obtain illegal acquisition. The lower court convicted Defendant A of the violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Embezzlement) which is the primary charge against the Defendants. In so doing, the lower court erred by misapprehending the rules of evidence and by misapprehending the legal principles.

B. In full view of the evidence submitted by the prosecutor of the facts-finding trial, the Defendants conspired in collusion with a limited liability company specializing in the genetic case third-party securitization (hereinafter referred to as the “limited liability company”).

(2) Although the lower court acquitted the Defendants of this part of the facts charged, the lower court erred in misunderstanding of facts, which is erroneous in the misapprehension of legal principles. (2) The lower court’s sentencing on the Defendants of unreasonable sentencing is too unjustifiable, so it is so unreasonable that the sentencing of the lower court on the Defendants of unfair sentencing is too unjustifiable.

2. Determination on the defendants' assertion of mistake of facts, etc.

A. The summary of this part of the facts charged is as follows: “The factory of H Co., Ltd. (hereinafter referred to as “H”) located in Hasung-si (hereinafter referred to as “H”) is being at auction, and at the same time established and jointly operated by the new corporation,” the Defendants consented to the auction; and “M Co., Ltd., Ltd. (hereinafter referred to as “M”)’s management around January 2, 2014, purchases intangible assets including H’s patent rights, gold-type, machinery, equipment, etc.; and Defendant A raises approximately KRW 5-70 million of its initial operating capital, including KRW 100 million capital.