Defendants shall be punished by imprisonment for one year and six months.

However, as to the defendants, from the day when this judgment became final and conclusive, the defendants are respectively.

Punishment of the crime

Defendant

A as the representative director of E Co., Ltd. (hereinafter referred to as “E”), a company manufacturing company of automated machines located in Daegu-gu, Daegu-gu, in charge of its operation, and Defendant B, as a director of the above company, jointly operated the above company while in charge of research, development, and fund management and enforcement affairs.

E Pursuant to relevant provisions, such as the Promotion of Technology Innovation for Small and Medium Enterprises, E was selected as a major institution that performs the task of “F” (hereinafter referred to as “project task of this case”) in “business start-up growth-health examination linkage project,” implemented by the Small and Medium Business Administration (the current department of the small and medium venture business), and Defendant A entered into an agreement with the head of the Korea Industrial Technology Evaluation Institute, the head of a specialized institution around April 28, 2014, to receive subsidies of KRW 180 million in total from the State (government contributions) for the project of this case.

The project of this Convention is subject to the Technology Development Expense Points System introduced from 2008 to secure transparency, such as preventing the diversion of funds, and the project is managing and executing the relevant project cost (if the managing agency enters items, use, transfer account number, amount, trade name of payment transaction parties, business number, etc. into the Technology Development Expense Electronic Financial Management System and then requests payment of expenses, the managing agency shall confirm the request from the Integrated Trust Bank). The project cost shall be used only for the limited purpose by item in accordance with the criteria set out in the project plan within the Convention, and shall not be used for any purpose other than the relevant technological development project.

The Defendants submitted false details of purchase as they received from the trader the machinery related to the instant business task as if they were supplied by the trader, and then correspond to the purchase price.