2012 Highest 4831 Violation of the Subsidy Management Act

2012 early 2379 Application for remedy order

1. A;

2. B

Kim Jong-hoon (prosecutions) and prosecution (public trial)

C

D

January 18, 2013

Defendant A shall be punished by imprisonment with prison labor for eight months and by imprisonment for six months.

However, the execution of the above punishment against the Defendants is suspended for two years from the date the judgment became final and conclusive. The Defendants are ordered to provide community service for 80 hours each.

An application for compensation by an applicant for compensation shall be dismissed.

Criminal History Office

From June 3, 2011 to June 7, 2011, Defendant A was appointed on September 4, 2010 as the chairman of the 7th Busan International dance System (hereinafter referred to as “dance system”) Operating Committee, which was held in Busan, and took charge of all duties of dance, and Defendant B performed duties as the director of the dance accounting office from March 201 to June 7, 201.

According to the decision to grant subsidies from the Mayor of Busan Metropolitan City, the Defendants entered the Busan Metropolitan City City City's Busan Bank account (Account Number E) in the name of the Busan Organizing Committee on International dance System in February 24, 201, and paid KRW 215 million on May 27, 201, and KRW 30 million on May 27, 201, as a result of the decision to grant subsidies from the Minister of Culture, Sports and Tourism on April 8, 201, the Defendants received a total of KRW 545 million (Account Number G) from the Minister of Culture, Sports and Tourism with the Busan Bank account in the name of F of the Busan Organizing Committee on International dance System in the name of the Minister of Culture, Sports and Tourism on April 8, 2011. As such, the Defendants faithfully implemented the subsidized project with due care in accordance with the details of the decision to grant the subsidies and shall not use it for any other purpose.

Nevertheless, around June 201, the Defendants paid the subsidies of KRW 25,448,965, which were paid by the head of Busan Metropolitan City in the dance-related office located in the Busan High-gu Busan High-gu HH University as promotional materials production expenses to the J of the I’s Operational Department, a dance-related goods supplier, and around that time, the Defendants returned KRW 8 million from I to the Dong University K professor’s Office at that time, and used KRW 65,200,000 as expenses for the operation chairperson, dance-related personnel encouragement, and various gifts, unlike the subsidies specified in the attached list of crimes. Accordingly, the Defendants conspired to use KRW 65,20,000,000 for other purposes.

Summary of Evidence

1. Defendants’ respective legal statements

1. Each prosecutor's statement concerning D, I, and L;

1. Each one copy, each of the details of corrective acids, tax invoices, business registration certificates, details of transactions of Busan International dances, details of M, copies of national non-books, copies of non-books, copies of Si-books, and written statements of expenditure prepared B, etc., and one copy, each of the Si expenses, Si expenses, and the details of the execution of door-proofs (expenses resolution, estimates, etc.), three copies, including written statements of expenditure (Expenditure resolution, sales slips, quotations, etc.), three copies, and investigation reports (Analysis of DNA transactions);

1. Each statement of L,O, I, P, Q and S;

Application of Statutes

1. Article relevant to the facts constituting an offense and the selection of punishment;

Defendants: Articles 41 and 22(1) of the Act on the Budgeting and Management of Subsidies (Amended by Act No. 10898, Jul. 25, 201); Article 30 of the Criminal Act

1. Aggravation for concurrent crimes;

Defendants: former part of Article 37, Articles 38(1)2 and 50 of the Criminal Act

1. Suspension of execution;

Defendants: Article 62(1) of the Criminal Act (Consideration into deposit of subsidies not used for the purpose)

1. Social service order;

Defendants: Article 62-2 of the Criminal Act

1. Dismissal of an application for compensation order;

Article 32 (1) 1 of the Act on Special Cases concerning Expedition, etc. of Legal Proceedings

Judgment on the Defendants and defense counsel's assertion

The Defendants and the defense counsel asserted that the investigative agency was seized on March 22, 2012 while the Defendants kept 65,200,000 won which the Defendants received from the delivery company to use as the expense for preparation for the 8th dance event, and that the Defendants did not use it for other purposes.

In light of the fact that the Defendants paid the subsidies to the suppliers in order to make the appearance that they would use the subsidies according to the purpose of the payment of the subsidies, they would have been returned later and actually returned part of them, and the subsidies received for dancing No. 7 in 2011 should be settled in June 201, but did not settle all the expenses that were returned by the suppliers until this time, it is determined that the subsidies were used for other purposes (the issue of whether the Defendants intended to use them for dance No. 8 in 2012 shall not affect the establishment of the crime), and the above assertion is without merit.

Judge Yang Sung-nam