All appeals by the Defendants are dismissed.

1. The court below found the Defendants guilty of all the facts charged.

Accordingly, the Defendants filed an appeal against the entire judgment of the lower court on the grounds of misunderstanding of facts, misunderstanding of legal principles and unfair sentencing.

Before remanding, the first instance court partially accepted the Defendants’ grounds for appeal, found the Defendants not guilty on the violation of the law regarding urban and residential environment conditions due to the failure to comply with perusal of materials, reversed the judgment of the lower court, and rendered a new punishment following pleadings.

As to the guilty portion of the judgment of the court of first instance before remand, the prosecutor filed an appeal against the acquittal portion of the judgment of the court prior to remand.

The Supreme Court has erred by misunderstanding the legal principles on the non-legal violation of the law of urban and residential environment due to non-compliance with the perusal of data, which affected the judgment.

It was reversed and remanded to this court.

2. Summary of reasons for appeal;

A. Fact-misunderstanding and legal principles: (a) On September 21, 2012, the Seongdong-gu Seoul Metropolitan Government Housing Redevelopment Improvement Association (hereinafter “instant association”) decided on the “case of the establishment of the management and disposal plan” at the 201st general meeting on September 21, 2012, and organized KRW 6 billion as the reserve fund for “preparation against the occurrence of expenses, such as future and subsequent delay.” (b) Article 28 of the articles of association of the instant association provides that “matters concerning the budget and execution of ordinary business of the association,” and “matters necessary for the operation and execution of business of the association” as the affairs of the board of directors; (c) each loan executed through the resolution of the board of directors on July 3, 2014 (hereinafter “the instant loan”) as a legitimate use of reserve fund; and (d) the former Urban and Residential Environment Improvement Act (amended by Act No. 13580, Sep. 13, 2015; hereinafter referred to as “the former Act”).