The prosecutor's appeal is dismissed.

1. A summary of the grounds for appeal: L Co., Ltd. (hereinafter “L”) owned 40% of the shares of N Co., Ltd. (hereinafter “N”) for the purpose of business acquisition and merger (hereinafter “M&A”) around October 2008; (b) held 40% of the shares of N Co., Ltd. (hereinafter “N”); and (c) Defendant A and his wife, the president of L, owned 60% of the remaining 60% shares, and there was no need to purchase L further.

In addition, N around October 2008, the market value per share was zero won due to business performance.

Nevertheless, Defendant B, Defendant A, and M, who were in charge of L’s financial management, are sufficiently recognized as having committed a crime of breach of trust against the Defendants on September 1, 2008, since they measured the disposal price of KRW 1,837,50,00 on the basis of the stock appraisal value report and audit report on September 1, 2008, which was not adequate, based on the N’s shares owned by Defendant A and M (hereinafter “instant shares acquisition”). As such, the Defendants were to have committed a crime of breach of trust against the Defendants.

Nevertheless, the lower court’s judgment that acquitted the Defendants of this part of the facts charged on the ground that the Defendants did not have any criminal intent for breach of trust is unreasonable.

2. Determination

A. The summary of the facts charged is the person who is the chairperson of L and its affiliate after taking over L and its affiliate companies, which are companies that develop and sell security software around the end of January 2005, and Defendant B is the person in charge of fund management of L and its affiliate companies, and M is the person who operates L with Defendant A as the wife of Defendant A.

M&A requires more time until completion, and if L, a listed company, is M&A, there are many restrictions (such as the burden of disclosure to the acquisition of an enterprise that is not related to the main business, the burden of disclosure of the M&A implementation process, etc.) due to the issue of disclosure, and the Defendants establish N for the purpose of corporate consulting on venture businesses and M&A mediation business with capital of KRW 50 million from the end of May 27, 2005, and establish L and its affiliate from the end of 2006.