The judgment of the court below is reversed, and the case is remanded to Chuncheon District Court Panel Division.

The grounds of appeal are examined.

1. The facts charged of the instant case reveal that Defendant D and E, by deceiving the qualification requirements and project costs of work staff when executing a forest tending project, which is a project eligible for G’s subsidies, the Defendant D and E, obtained a total of KRW 2,810,338,00 from G over 12 times in total from December 31, 2007 to December 24, 2010, and obtained a total of KRW 2,810,338,000 by means of false application or other unlawful methods, and Defendant G forestry association received a total of KRW 2,810,38,000 by means of the above false application or other unlawful methods. Defendant D and E, an employee, obtained a total of KRW 2,810,338,00 by means of the above false application or other unlawful methods.

The lower court, on the grounds indicated in its reasoning, convicted all of the facts charged of the instant case.

2. Examining the reasoning of the lower judgment and the record, contrary to what is alleged in the grounds of appeal, the lower court did not err by misapprehending the facts against logical and empirical rules or by misapprehending the legal doctrine regarding the requirements for establishment of fraud, contrary to what is alleged in the grounds of appeal

However, the lower court’s determination on the violation of the Act on the Budgeting and Management of Subsidies among the facts charged in the instant case is difficult to accept for the following reasons.

A. Article 2 subparag. 1 and 4 of the former Act on the Budgeting and Management of Subsidies (amended by Act No. 108989, Jul. 25, 201; hereinafter “the Subsidy Act”) refers to a subsidy granted to a person other than the State without receiving any subsidy, charge, or other equivalent consideration that the State grants for the purpose of creating or providing financial assistance in connection with the affairs or projects conducted by the person other than the State, as prescribed by the Presidential Decree, and an indirect subsidy refers to a subsidy granted by a person other than the State without receiving any equivalent consideration, in whole or in part, for the purpose of granting the subsidy.