The prosecutor's appeal is dismissed.

1. Comprehensively taking account of the evidence submitted by the prosecutor as to the gist of the grounds for appeal, the defendant could be found to have obtained subsidies by deceiving the Korea Environment Industry Technology Institute by means of application exceeding the subsidy by pretending to have produced the first product itself even after being produced, and by deceiving the said Institute as a research expense, and at the same time receiving subsidies by false application or other unlawful means. However, the court below acquitted all of the facts charged in this case. In so doing, the court below erred by misapprehending the legal principles, misunderstanding the facts, and misunderstanding.

2. Determination

A. The Korean Institute of Environmental Industry and Technology (hereinafter “Technology”) established as a quasi-government agency on April 8, 2009 under the Environmental Technology and Industry Support Act for the purpose of efficiently supporting the development of environmental technologies and the purchase of green products, and promoting the environmental industry. Since 2010, it received research and development plans from research institutes (including general companies) while jointly promoting the environmental technology development project with the Ministry of Environment, and evaluated them after determining the research and development tasks, and concluded an agreement with research institutes.

For the purpose of developing environmental technologies each year, the Government contributed to a research institute with an amount of KRW 120 billion through KRW 200 billion as D government-funded projects. The Environmental Technology Institute receives from the research institute which received the government-funded contributions a “report on the results of the use of research and development costs” accompanied by evidentiary documents necessary for expenditures within three months after the completion of the research task. The government-funded projects are paid total amount to the research institute from around 2010 to 2012. From around 2013, the government-funded projects are deposited into the account in the name of the Environmental Technology Institute, and the research institute is connected to the Environment Technology Institute's Research Expense Management System and confirmed the propriety of the use of the government-funded projects.