The appeal is dismissed.

The grounds of appeal are examined.

1. The interpretation of the penal provisions ought to be strict, and it is not permitted because it excessively expands or analogical interpretation of the meaning of the penal provisions in the direction unfavorable to the defendant violates the principle of statutoryism (see, e.g., Supreme Court Decision 2009Do3053, Dec. 10, 2009). Article 29 subparag. 6 of the former Foreign Exchange Transactions Act (amended by Act No. 14047, Mar. 2, 2016; hereinafter “Foreign Exchange Transactions Act”) provides that “any person who violates the duty to report under Article 16 or 18 shall be punished, and Article 18 subparag. 1 shall be reported to the Minister of Finance and Economy, as prescribed by Presidential Decree.”

“......”

According to the definition of Article 3(1) of the Foreign Exchange Transactions Act, “overseas direct investment” under subparagraph 18 falls under “capital transactions” under subparagraph 19, and thus a person who intends to make overseas direct investment bears the duty to report under Article 18(1).

In doing so, Article 3 (1) 18 of the Foreign Exchange Transactions Act refers to any of the following transactions or payments made by a resident:

The term "(A)" provides that "any transaction or activity prescribed by Presidential Decree, which is conducted to establish a continuous economic relationship with a corporation established under foreign laws and regulations (including a corporation established under foreign laws and regulations) or by acquiring securities issued by such corporation or lending money to such corporation, etc." (b) provides that "any activity prescribed by Presidential Decree, which is conducted to establish and operate a place of business in a foreign country or to provide funds to conduct overseas business activities."

In addition, Article 8 (1) of the Enforcement Decree of the Foreign Exchange Transactions Act (hereinafter "Enforcement Decree") Article 3 (1) 18 of the Foreign Exchange Transactions Act.