All appeals by the Defendants are dismissed.

1. Summary of grounds for appeal;

A. In fact, Defendant A only manufactured and sold drugs at a factory located in Busan City/Gu (hereinafter “ Busan factory”) of Defendant B Co., Ltd. (hereinafter “Defendant Company”), and there was no fact that Defendant A manufactured and stored drugs for the purpose of sale at a factory located in Yangyang City E as stated in the facts charged in the instant case (hereinafter “scambling factory”).

However, since the court below found all of the facts charged in this case guilty, the court below erred by misapprehending the facts and affecting the conclusion of the judgment.

B. The punishment that the court below sentenced against the Defendants (Defendant A: imprisonment with prison labor for six months, a suspended sentence of one year, confiscation, and Defendant B: fine of five million won) is too unreasonable.

2. Determination

A. In light of the following circumstances that can be recognized by comprehensively taking account of the evidence duly adopted and examined by the lower court and the trial court as to the assertion of factual misunderstanding, the Defendant sold medicines without obtaining permission from drug wholesalers in the smuggling market as stated in each criminal facts in the lower judgment, and the Defendant did not have a herb pharmacist while manufacturing the medicines. The Defendant stored the medicines for the purpose of selling them at a place that does not meet the standards prescribed by Presidential Decree, such as where the term of validity expires, and where there is no laboratory that controls non-sanitary and quality, and stored the medicines for the purpose of selling them without the term of validity.

Therefore, the Defendants’ assertion of factual mistake is without merit.

1) At the time of the joint control of the smuggling Police Station and the Busan Regional Food and Drug Safety Agency, etc., drug cutting machines, screening machines, packaging sites, low-proof materials, sealed herb products, labels indicating product names, melters, etc. inside the sealed factory, and herb drugs, shampers, etc. for which the effective period, such as melters, etc., has passed.