The appeal is dismissed.

The grounds of appeal are examined.

1. The interpretation of penal provisions must be strict, and the interpretation of the explicit penal provisions in the direction unfavorable to the defendant is not permitted as it violates the principle of no punishment without the law (see, e.g., Supreme Court Decision 201Do7725, Aug. 25, 2011). Article 8(1) main text of the former Foreign Exchange Transactions Act (amended by Act No. 14525, Jan. 17, 2017; hereinafter “Act”) provides that “any person who intends to engage in foreign exchange business shall prepare capital, facilities and professional human resources sufficient to engage in foreign exchange business and register it with the Minister of Strategy and Finance in advance, as prescribed by Presidential Decree.” Article 27(1)5 of the Act, which is a penal provision, provides that “any person who does not make a registration under the main sentence of Article 8(1) or who conducts foreign exchange business by making a registration or by making a false or other unlawful means.”

According to Article 3 (1) 16 of the Act, which is the definition provision, the term "foreign exchange" means issuance or sale (a) of foreign exchange, payment, collection and receipt (b) between the Republic of Korea and a foreign country, deposit, lending and borrowing of money or guarantee (c) with residents denominated or paid in foreign currency, deposit with non-resident, lending and borrowing of money, lending and guarantee of money (d) with non-resident, and other business similar to the above business, which falls under any of the business prescribed by Presidential Decree.

Article 6 of the Enforcement Decree of the Foreign Exchange Transactions Act (hereinafter referred to as the "Enforcement Decree") shall be entrusted, insurance and trust between residents and non-residents, with respect to the "business prescribed by Presidential Decree" under Article 3 (1) 16 (e) of the Act, to trade and mediate the trade of securities or bonds denominated or paid in domestic currency with non-residents (Article 3 (1) 16 (e) of the Act.