Defendants shall be punished by imprisonment for one year and six months.

However, each of the above punishments shall be executed for three years from the date this judgment becomes final and conclusive.

Punishment of the crime

Defendant

A From October 15, 2009 to the present date, a representative director of N Co., Ltd. (hereinafter “N”) for the purpose of semiconductor design, manufacture, sale, etc. in Seongbuk-gu M in Seongbuk-gu, Sungnam-si (hereinafter “N”) is a person in charge of overall control over the affairs of the said company.

Defendant

B was the vice president of N from January 2013 to July 2015 and served as the head of the Strategic Technology Development Bureau (CTO). From September 2014 to September 2014, B was the person in charge of the task as the general manager of the task of “O” with Defendant A, who was in charge of the task.

In December 27, 2011, N was selected as a major institution for the project for the development of technology innovation in small and medium enterprises promoted by the Small and Medium Business Administration, and entered into an agreement with the Korea Industrial Technology Evaluation Institute and a small and medium enterprise technology development project with the authority delegated by the Small and Medium Business Administration to select, manage, supervise, and evaluate the project.

Defendant

A received KRW 200,000 from the Korea Evaluation Institute of Industrial Technology assigned the budget of the Small and Medium Enterprises in accordance with the Small and Medium Enterprise Technology Development Project Convention in the amount of KRW 180,000 from N, and received KRW 380,000,000,000 from N in the account of corporate bank (P) in the first year following the second year. On December 20, 2012, A received KRW 180,000,000,000 from N in the accounts of corporate bank (number: Q) in the second year.

In the case of the above task, if it is determined as a failed project or suspended project as a result of evaluation conducted by the Administrator of the Small and Medium Business Administration due to extremely poor outcomes, the government contributions shall be returned in full.

When the Defendants were placed in the situation where the government contributions should be recovered as above because they did not perform the above tasks, they would make and submit a false report on the development of technology for small and medium enterprises after manipulatinging the status of on-site inspections, and based on such report, the Defendants would recover and support the total amount of the government contributions by deceiving the evaluation members using the materials for final evaluation published.