1. Of the judgment of the court of first instance, the part against the defendant exceeding the money ordered to be paid below shall be revoked.

Basic Facts

1) Status of the party as an incorporated foundation B (hereinafter “B”)

A) A nonprofit foundation established to facilitate the export of venture businesses and small and medium enterprises and to support their overseas expansion, etc., the former Subsidy Budget and Management Act (amended by Act No. 10898, Jul. 25, 2011; hereinafter “former Subsidy Act”).

(2) The defendant is the chief director of B, who has the power of representation in the incorporated foundation.

Detailed items of the progress of the project of this case (cost)

1. The cost of building up a database of 50,000,000 for the development of the service cost software: 100,000,000 novels of 150,000,000; and

2. The network sector 280,000,000 server sector 242,00,000,000

3. B applied for the approval of the “C business” (hereinafter “C business”) by the Administrator of the Small and Medium Business Administration on September 19, 2008, along with the detailed implementation plan of the instant business. On September 19, 2008, the total required budget under the above detailed implementation plan is KRW 772 million, and the itemized budget is as follows. 2) B requested the Administrator of the Small and Medium Business Administration to revise the subsidy project budget in 2008 to efficiently carry out the instant business. As a result, on October 30, 2008, B was notified by the Administrator of the Small and Medium Business Administration of the approval to change the subsidy budget in 2008 to KRW 83,000,000.

3) On September 22, 2008, B requested the Korea Economic Research Institute, a foundation, to provide the cost accounting service of the instant project. Since the total cost of the instant project was estimated to KRW 924 million (the development service cost of KRW 352 million and the cost of the equipment purchase of KRW 557 million), B requested the Seoul Local Public Procurement Service to provide the bid contract of the instant project on September 22, 2008.