The defendant's appeal is dismissed.

1. Summary of grounds for appeal;

A. Since the Defendant, in operating a private teaching institute, entered into an agreement with E to allocate one half of its net profits, the Defendant does not constitute an employee under the Labor Standards Act.

B. The lower court’s sentence of unreasonable sentencing (200,000 won of fine) is too unreasonable.

2. Determination

A. Determination on the assertion of mistake of facts should be made on the basis of whether the form of a contract is an employment contract or a contract for employment, and whether a worker has a subordinate relationship with an employer for the purpose of wages in substance. Determination of whether a dependent relationship exists should be made by comprehensively taking account of the following factors: (a) whether an employer has a duty to determine the working hours and place; (b) whether an employer has a considerable direction and supervision of an employer in the course of performing his/her duties; (c) whether an employer is designated as working hours and place; (d) whether an employer is bound by the rules of employment or employment; (e) whether a labor provider is capable of operating his/her business on his/her own account; (e) whether he/she has a risk, such as the creation of profits and losses through the provision of labor; (e) whether the nature of remuneration was the subject of labor; (e) whether the basic wage or fixed wage was determined; and (e) whether or not the continuous relationship with the provision of labor was exclusive to an employer; and (e) whether the status of an employee was recognized by the social security system.

However, the circumstances such as whether the basic wage or fixed wage was determined, whether the labor income tax was withheld, and whether it was recognized as an employee in the social security system, etc. are economically superior to the employer.