All appeals by the Defendants are dismissed.

1. Summary of grounds for appeal;

A. In fact, misunderstanding of the legal principles and misunderstanding G directly contracted the construction from E, and Defendant B, the representative of G, actually carried out the construction, Defendant A did not borrow the name of G from B, and Defendant B did not lend the name of G to Defendant A.

B. The punishment of the lower court (a fine of KRW 3 million for each of the Defendants) is too unreasonable.

2. Determination

A. Fact-misunderstanding and misapprehension of the legal principles: 1) “Act of allowing another person to receive or execute construction works using his/her name or trade name” prohibited by Article 21 of the Framework Act on Construction Industry (hereinafter “title lending”) means cases where another person knowingly consented or understood to use his/her trade name or name for the same purpose while performing construction works as a constructor qualified by using his/her trade name or name. Thus, even if construction works subcontracted in the name of a constructor are executed by another person (hereinafter “contractor”), if the constructor himself/herself has been supplied with the intention to substantially participate in the construction works and has been actually involved in the construction work, it cannot be deemed as a nominal lending.

B. Whether a constructor actually participated in the supply of and demand for and the execution of a construction work is objectively determined in light of the following: (a) details of the demand and supply of, and the receipt of, consideration for, the construction work; (b) details of the agreement between the constructor and the contractor related to the construction work; (c) whether the constructor was involved in the construction work; (d) degree and scope of the construction work; (e) method of raising and managing the construction fund; and (e) method of receiving money for the construction work; and (e) ownership of responsibility for, and profit and loss