Defendant

All appeals by prosecutors are dismissed.

1. Summary of grounds for appeal;

A. Defendant 1) misunderstanding of facts ① D Co., Ltd. operated by the Defendant (hereinafter “D”).

Since 2009, annual sales have continuously increased, in particular, KRW 8.1 billion of annual sales in 201 and KRW 325.5 billion of the net profit per year in 2012, and accordingly, in 2012, KRW 518 billion of annual sales in 201 and KRW 278 million in 2012, and KRW 615 billion of annual investment in facility investment in 2012.

In fact, the bill was not paid on the due date for the payment of the price of the goods until the due date of the payment on February 2013, and the bill was operated without bank arrears or wage delay.

Therefore, it could not be expected that the defendant would not pay the price for the goods purchased from the victims at the time of being supplied with the goods as stated in the facts charged. Therefore, the intention of defraudation cannot be recognized.

② Around February 2012, when the suspension of production was determined due to a patent dispute between conglomerates and a transfer of product base to China, etc., D was faced with a crisis that rapidly reduces sales from February 4, 2012 to May 2012, but the business that was affiliated with a Chinese company was transferred to D again and promoted the development of new products from the second half of 2012, it was anticipated that the Defendant would be able to fully pay the price of the goods after being supplied with the goods in the second half of 2012 and around the beginning of 2013. As such, there was no deception by the victims at the time of being supplied with the goods.

③ While D’s sales rise rapidly in the second half of 2012, D had a tendency to expand specialized technology and increase the quantity of raw materials purchased, D had been making efforts to secure sufficient funds, and D had not been able to secure funds due to doping the wrong maximum debt amount from a corporate bank to 3.5 times the amount of loans from the corporate bank.

Therefore, the defraudation of the accused.