All appeals by the Defendants and the Prosecutor are dismissed.

1. Summary of grounds for appeal;

A. Legal principles (public prosecutor: the part not guilty in the reasoning of the judgment below) that the Defendants filed an application for registration of incorporation as if they were realizing a company which has no substance for the purpose of crime, and entered the contents thereof in the corporate register constitutes a false report as stated in the crime of false entry, such as public electronic records, and thereby making the records of false facts recorded and exercising the same.

Nevertheless, the lower court erred by misapprehending the legal doctrine, thereby adversely affecting the conclusion of the charges.

B. The prosecutor of unreasonable sentencing (a two-way) 1: In light of the fact that the Defendants opened a subordinate corporation for the purpose of receiving compensation and transferred multiple accounts to the Defendants, and the number of accounts transferred by the Defendants, each of the punishments of the lower judgment (six months of imprisonment) is inappropriate as it is too unreasonable. 2) The Defendants’ punishment (six months of imprisonment) of the lower judgment is too unreasonable.

2. Determination

A. As to the prosecutor’s assertion of the misapprehension of the legal doctrine, in a case where the promoters, etc. of a stock company can be deemed to have established by registering the establishment of a company in accordance with the requirements and procedures for the establishment of a company under the Commercial Act and other Acts and subordinate statutes, the registration of incorporation and the details thereof do not constitute the crime of false entry in the authentic copy of a notarial deed

At the time of incorporation of the Company by promoters, etc., there was an intention or purpose of crime using the Company without actually operating the Company.

solely on the ground that a company did not have the substance of its business, such as human and physical organization, cannot be deemed to have recorded false facts in the corporate register.

(see, e.g., Supreme Court Decision 2019Do9293, Feb. 27, 2020). According to the evidence duly adopted and examined by the lower court, the Defendants decided to establish a false corporation to open and sell a large passbook, and requested the Defendants to register the incorporation of a stock company.