The judgment below

The part against the defendant is reversed, and that part of the case is remanded to the Seoul High Court.

The grounds of appeal are examined.

1. As to the method of interpreting the scope of products covered by the direct production verification, (1) Articles 6(1), 7(1), and 9(1) of the Act on the Promotion of Purchase of Small and Medium Enterprises and the Support for Development of Agricultural and Fishing Villages (amended by Act No. 13094, Jan. 28, 2015; hereinafter “Market Support Act”) shall allow the Administrator of the Small and Medium Business Administration to designate the products directly produced and supplied by the small and medium business owner as competitive products for small and medium business proprietors (hereinafter “competitive products”), which are deemed necessary to expand markets, as products directly produced and supplied by the small and medium business owner. The conclusion of a contract for procuring competing products by a public institution requires the head of a public institution to follow the method of competitive bidding between small and medium business proprietors in principle, thereby promoting the purchase of small and medium business products and supporting markets, and at the same time, a small and medium business owner in a procurement contract concluded so that it directly produces and directly operates a competitive system between small and medium business operators.

On the other hand, the Act on the Development of Agricultural Products stipulates that the head of a public institution intends to enter into a contract for the procurement of products through competition between small and medium entrepreneurs, but it is necessary to verify the direct production of the relevant small and medium enterprise (the main sentence of Article 9(1)); however, if a small and medium enterprise examines whether it has the ability to directly produce products in advance and submits a certificate of direct production verification issued by the Administrator of the Small and Medium Business Administration, it does not require the verification of direct production (proviso of Article 9(1) and Articles 9(4) and 34(2); Article 2

In full view of the contents and purport of these provisions, the duty of direct production by small and medium enterprise owners is designated as competing products.