The prosecutor's appeal is dismissed.

1. The summary of the grounds for appeal (the factual errors or misapprehension of the legal principles) is that the Defendant had no ability to repay the loan at the time of the instant loan, and do not recognize the fact that, in full view of the following: (a) the circumstance of the Defendant’s operation was not very good at the time of the instant loan; (b) the closure of the travel agency for six months after the instant loan; (c) the closure of the business; and (d) the interest on the bank loans and the credit card loans that had existed prior to the instant loan; and (c) the fact that it was difficult to deem that the Defendant repaid small amount of the loans that the Defendant repaid after the instant loan was extremely small, the Defendant did not have the ability to repay the loan at the time of the instant loan; and (d) the Defendant did not know that the loan would not be repaid

2. The summary of the facts charged of the instant case, even if the Defendant did not think of or have no means to repay the loan even if he/she received the loan, the Defendant, at around 14:00 on November 25, 2010, received KRW 2,10,000,000 from the employees of the victim company of Daegu Bank Co., Ltd. (hereinafter “victim”) under the name of the principal of the loan and KRW 2,00,000 per annum, 43.92% on a yearly interest rate of 12 months, and acquired the loan from the employees of the victim company of Daegu Bank Co., Ltd. (Account Number: E) with the name of the principal of the loan.

3. Whether fraud is established through the deception of the borrowed money is determined at the time of the borrowing. Therefore, even if the defendant had the intent and ability to repay the borrowed money at the time of the borrowing, it is merely a civil default, and it cannot be said that criminal fraud is established. Meanwhile, the existence of the criminal intent of defraudation, which is a subjective constituent element of the crime of fraud, shall be determined at the time of borrowing.