Defendants are not guilty.

1. The summary of the facts charged in the instant case is the representative director of the N Co., Ltd. (hereinafter “N”) established for the purpose of real estate development after having its head office in Suwon-gu, Busan (hereinafter “N”) from April 2008, who is a person in charge of the above company’s overall business as well as the hotel development project promoted by N to four parcels, such as Suwon-gu, Busan. Defendant B is a person in charge of affairs such as authorization and permission for the above hotel development project, financial loans, and the selection of a contractor and a subcontractor from April 2008.

1. Defendants

A. A. Around April 2013, the Defendants entered into a service contract for the embezzlement of O-related service costs at the Jongno-gu Seoul P building and the N Seoul office located on the fiveth floor to make Q and N’s computer graphic for the construction-related advertising company’s above MM hotel development project. The Defendants, who entered into a contract with Q and N’s service contract for the creation of a computer graphic for the above MM hotel development project, calculated on May 30, 2012, retroactively from the date of the contract to May 30, 2012, including the actual service cost of KRW 30 million, even though the actual service cost was excessive, agreed to receive a refund of the excessive amount of KRW 290 million (excluding value-added tax).

Accordingly, on April 24, 2013, the Defendants paid the O service cost of KRW 290 million (including value added tax) to the bank account in Q’s name (R) with the N company’s funds. On April 24, 2013, the Defendants returned KRW 259 million in total from Q over both days on April 29 and May 2, 2013, and thereafter used it for personal use by the Defendants around that time.

Accordingly, the Defendants conspired and embezzled the victim N's company funds of KRW 259 billion.

B. On February 2013, the Defendants’ embezzlement of S-related service costs concluded a service agreement with the “State (S)S” (former (S; hereinafter “S”) established by the above Q for the purpose of the construction design business and the design drawing for the above MM hotel development business, and even if the actual total service cost was anticipated to be approximately KRW 1.1 billion, the amount is excessively appropriated as KRW 1.5 billion.