The judgment of the court below is reversed.

Defendant shall be punished by imprisonment for a term of one year and two months.

1. Summary of grounds for appeal: Error of facts (not only providing a sufficient security to the victim company at the time of conclusion of the contract, but also not deceiving the victim company on the grounds of ability or intent to pay the borrowed money and the price for feed in light of the defendant's obligation

2. Determination

A. (1) According to the evidence duly admitted and examined by the lower court and the first instance court, the following facts are recognized.

Since 2000, the Defendant has been engaged in the livestock industry (e.g., milk raising and selling milk) with the trade name of “C” at the 4-dong livestock shed on the land of Echeon-si L.

① The Defendant entered into a feed supply contract with “M” in 201 and was supplied with feed. ② From March 20, 2012, the Defendant entered into a feed supply contract with “N” (hereinafter “N”), and on May 15, 2012, provided KRW 120 milch 120 as security to N in order to secure KRW 40 million of the feed price for N.

On December 1, 2015, the Defendant entered into an additional feed supply contract with E Co., Ltd. (hereinafter “E”).

On February 2, 2016, the Defendant set up a first priority mortgage of KRW 130 million with respect to the said four livestock penss as collateral for E, while, on February 15, 2016, the Defendant provided KRW 150,000 as collateral for transfer on February 15, 2016.

On the other hand, the Defendant created the first priority collective security right in order to secure the obligation to loans to theO unions on each of the following land owned by the Defendant:

① In Ycheon-si, Pancheon-si: (a) on March 10, 2014, the date of establishment; (b) the maximum debt amount of KRW 78 million; and (c) the instant feed supply contract was concluded with the victim on May 7, 2015; (b) the maximum debt amount of KRW 1196 square meters; and (c) the amount of KRW 14 million on July 20, 2017.

- At the time, the Defendant is liable to the victim company for each of the damages amounting to KRW 130 million and KRW 100 million to the F Association.