Defendants are not guilty.

1. Defendant A, from around December 201 to April 2013, 201, was a person who was acting as the representative of the FFF wood group (hereinafter “FF group”) that produces, processes, and distributes high-ro declines from Kimcheon-si E, Kimcheon-si, and Defendant B is the representative director of the G MF group, which is the automatic packaging machine equipment company.

In order to enhance the competitiveness of rural communities, the victim Kimcheon-si promoted the "project to discover and foster rural income resources" that provides farmers with support for the establishment of facilities for producing, processing, and distributing agricultural crops, construction expenses, etc., and selects the target of support project operators at the request of the Do/Dong-dong producers' organizations of Eup/Myeon/Dong-dong, etc., and upon completion of the project by first executing 20% of the total project expenses with the self-payment, the victim would pay 80% of the total project expenses within the limit of 300 million won only to those who bear the self-payment.

Defendant

A When the Defendant was selected as a subsidized project operator of the “rural Income Recovery and Promotion Project for Agricultural and Fishing Villages” on December 3, 2012, the Defendant concluded a contract on the construction of high dystyfication, disinfection and packing facilities at the Rash Distribution Center, which will be newly constructed at B and Kimcheon-si, and concluded a contract on the construction of high dystyfication, disinfection and packing facilities, with a discount of the construction cost, provided 58 million won (20 million won of the total construction cost as 290 million won) from B. Since then, the Defendant was willing to apply for subsidies to the victim by creating false settlement documents as if all the aforementioned self-paid charges were paid in advance.

Accordingly, on February 2, 2013, the Defendant submitted a statement of accounts, detailed statement of execution of project costs, tax invoice, certificate of payment without passbook deposit, standard contract for construction contract, etc. to a public official in charge who is unable to know his/her name from the Kimcheon-si Scheon-si Scheon-si, Kimcheon-si, and submitted the statement of accounts, detailed statement of execution of project costs, tax invoice, certificate of payment without passbook, and request for subsidy payment.

However, it is true.