All appeals by the Defendants are dismissed.

Defendant B Co., Ltd. (hereinafter “Defendant Co., Ltd.”) requested that Defendant B contact with the entire suppliers of medicine on March 10, 2016 and not engage in the transaction through the Defendant Co., Ltd. and directly engage in the transaction with the I Hospital. As such, Defendant Company sold drugs to the I Hospital.

Although the school juristic person G operating the I Hospital (hereinafter “G”) does not constitute a person who actually controls by exercising dominant influence over the organization of executive officers or business operation of the Defendant Company, the lower court found the Defendant guilty of the instant facts charged. In so doing, the lower court erred by misapprehending the legal doctrine or misapprehending the legal doctrine.

Judgment

A. The lower court found the Defendant guilty on the instant facts charged by comprehensively taking account of the following circumstances acknowledged based on the evidence duly adopted and examined: G, by exercising dominant influence over the organization of executive officers or business operation of the Defendant Company for the wholesale merchant of medicines, and thereby exercising control over the organization and business operation of the Defendant Company.

Defendant

The Company is a company established around November 23, 2015 by G which establishes and operates the I Hospital in Busan and by E Co., Ltd. (hereinafter “E”), a drug wholesaler having its head office in Seoul, with the aim of supplying medicine to I Hospital.

G acquired shares equivalent to 49% of the total issued shares by investing KRW 245 million in the Defendant Company out of the total amount of KRW 500 million, and E invested KRW 250 million in the F Limited Company controlled by oneself, thereby acquiring shares equivalent to 51% of the total issued shares.

G intended to improve the management status by obtaining dividends from the Defendant Company through the supply of drugs to the Defendant Company through the Defendant Company, and there is no medical institution that supplies drugs to the Busan District except Q Hospital at the time.