All appeals by the Defendants are dismissed.

1. Summary of grounds for appeal;

A. misunderstanding of facts or misunderstanding of legal principles 1) The purpose of the instant subsidy project related to HCCP facilities and the grant of subsidies lies in fostering the so-called industry base through quality control and fostering the so-called industry with competitiveness in H region, which is the largest mountainous district of Jeju Special Self-Governing Province, as part of the development project under the Act on the Support for the Fostering of Local Small-Mediums. The instant subsidy is granted for this purpose. The instant HCCP facilities are installed to process and produce so-called May, and the instant HCCP facilities are included in those facilities, and necessary for the success of the instant subsidy project. Furthermore, since the official in Seogpo City knew that the instant HCC facilities were included in the above machinery and equipment, there was no influence on the decision-making for the grant of subsidies. Accordingly, even if the Defendants failed to specify the installation of HCC facilities at the time of applying for subsidies, or obtained any means that could have been somewhat lack legitimacy in the process, the Defendants’ act of management of subsidies should be deemed as “the act of fraud” under the Act on the Management of Subsidies.

(2) The Defendants cannot be deemed to have received subsidies by their “a false application or any other unlawful means.” As such, the Defendants did not use the instant subsidies for private purposes, such as personally taking advantage of such private purposes, the Defendants cannot be deemed to have violated the Subsidy Management Act. 2) The specific amount of national subsidies was mixed with all relevant national subsidies, Do subsidies and self-charges, and the cost of construction of HACC facilities was transferred to the KACC’s account, thereby re-transfering the instant subsidies to the MA account.