Defendants are not guilty.

1. The summary of the facts charged is the person who served as an agent for the purchasing team of the defense industry chain Co., Ltd. which produces and supplies core equipment of the military tactical communications network, and the defendant A serves as the general managing director of the above company.

Where it is intended to export materials and national defense science and technology overseas or intermediate transactions thereof, it shall obtain permission from the head of the defense project, as prescribed by Presidential Decree.

Nevertheless, on March 22, 2011, the Defendants conspired to serve as a employee of D Co., Ltd., and exported Canadian four synthetic flag, which is a main component of the non-electric sets (E), as a person who is a non-electric product through the Incheon International Airport located in Jung-gu, Incheon (E), to Canada without obtaining permission from the head of the defense project.

2. Article 62(2) of the former Defense Business Act (amended by Act No. 12559, May 9, 2014) provides that “a person who, by private or unlawful means, commits the pertinent act without obtaining permission or permission under Article 53 or 57(2) shall be punished by a fine not exceeding ten years, or by a fine not exceeding 50 million won.” Article 57(2) of the former Defense Business Act (amended by Act No. 11690, Mar. 23, 2013) provides that “where a person intends to export industrial materials and national defense science and technology or to intermediate such transactions abroad, he/she shall obtain permission from the Minister of Trade, Industry and Energy or the head of a defense project, as prescribed by Presidential Decree.”

Article 40 (2) of the former Enforcement Decree of the Defense Business Act (amended by Presidential Decree No. 27618, Nov. 29, 2016) provides that "any part to be used for anti-processed goods shall be deemed as having been designated by being included in such anti-processed goods." The proviso provides that "the parts and equipment are not manufactured or maintained by the relevant defense contractor or used for non-processed goods."