All appeals by the Defendants are dismissed.

1. Summary of grounds for appeal;

A. Defendant A1’s misunderstanding of facts (as to each fraud listed in the judgment of the court below’s judgment, with respect to each fraud listed in paragraph (2) of Article 2 of the judgment of the court below), the Defendant did not have any intent to commit fraud, since the Defendant had sufficient financial capacity to repay, such as owning a 3-story building of approximately KRW 450 million and a 180 million N located in approximately KRW 180 million at the time of each crime listed in the facts charged.

2) The sentence of the lower court’s unfair sentencing (one year of imprisonment) is too unreasonable.

B. Defendant B’s punishment (one year of imprisonment) is too unreasonable.

2. In full view of the following circumstances revealed by the evidence duly adopted and examined by the lower court regarding Defendant A’s assertion of mistake, the lower court did not have sufficient means to pay the Defendant at the time of each fraud as stated in Article 2.1 of the lower judgment’s judgment.

Therefore, it is possible to recognize the criminal intent of defraudation by the accused.

① Since around 2008, E operated by the Defendants became bankrupt due to the financial crisis, and due to the economic depression, the financial situation worsens as much as the monthly salary of the employees is unable to be properly paid due to the decrease in the order of the goods due to the financial depression, and eventually, the decision to commence an auction at a factory on January 27, 201, etc., making it difficult to operate the company any longer.

② In the auction procedure for E factories in 2011, the appraised value of the factory site and buildings was appraised as KRW 1,462,634,700, while the registered bond amount was assessed as KRW 3,174,179,679.

③ At the time of the crime of fraud in this part, the Defendant owned 1/2 shares of forest and field 830 square meters (hereinafter “N land”) located in Daejeon Seo-gu N and the three-story buildings located in Daejeon Seo-gu M (hereinafter “M building”) and had sufficient financial capacity to repay the said shares.

The argument is asserted.

However, at the time of the crime of fraud in this part, the N land is the registration of provisional seizure of KRW 1.089 billion against the claim amount and the maximum amount of the claim amount of KRW 65 million against the creditor and the Korea Technology Finance Corporation.