All appeals by the Defendants are dismissed.

1. Summary of grounds for appeal;

A. As to Defendant A’s fraud, the lower court convicted Defendant A of this part of the facts charged in reliance on the result of the analysis by the Health Insurance Review Board, which does not guarantee objectivity, although Defendant A was not hospitalized with false intent to acquire insurance proceeds or received excessive insurance proceeds intentionally exceeding the adequate period of hospitalization. In so determining, the lower court erred by misapprehending the facts.

2) As to the Defendants’ fraud and attempted fraud, Defendant B did not clearly know the fact that the damage insurance company was released prior to the conclusion of the insurance contract, and even though there was no deception, the lower court convicted the Defendants of this part of the charges. In so determining, the lower court erred by misapprehending the facts.

B. The sentence of the lower court’s unfair sentencing (Defendant A: two years of suspended sentence; two years of suspended sentence to Defendant B; two years of suspended sentence to June; and 80 hours of community service order) is too unreasonable.

2. Determination

A. 1) As to the Defendant’s assertion of mistake of fact, Defendant A also asserted the same as the grounds for appeal.

The lower court, based on the evidence duly adopted and examined by the lower court, found the following circumstances: ① Defendant A entered into 16 insurance contracts from around 1995 to around 2009 (the total monthly insurance premium is KRW 1,943,250); and Defendant A’s financial ability; and (i) Defendant A’s financial transaction details are excessive compared to the financial ability of the Defendant A (i.e., the amount of KRW 20 million from September 20, 2006 to April 20, 201; (ii) there appears to have been a debt of KRW 20 million from April 15, 201; and (iii) the amount of KRW 119,597,443 loans around April 15, 201; and (iv) the products with relatively high hospitalization are products, and thus, Defendant A suffered injury, as in ordinary cases.