A defendant shall be punished by imprisonment for two years.

Punishment of the crime

On October 28, 2013, the Defendant was sentenced to eight months of imprisonment for fraud at the Daejeon District Court, and the judgment became final and conclusive on June 26, 2014.

The Defendant, around January 2005, is the representative director of the company E (hereinafter “instant company”) established for the purpose of software development, etc. on the fourth floor of the D Building in Yeongdeungpo-gu Seoul Metropolitan Government, and is a person who has overall control over the operation of the company and has overall control over the fund management and enforcement affairs.

On February 25, 2009, the Defendant entered into an MOU on “F” with the Daejeon Metropolitan City Office located in Seo-gu, Daejeon, Daejeon, Daejeon, and submitted a written application for subsidies to the effect that “The instant company was transferred to H I factories located in Daejeon, Daejeon (No. 321 to 324, No. 327 to 329, hereinafter “the instant real estate”). The Defendant submitted a written application for subsidies to the effect that “The location of the instant real estate was 1,091,729,000 won for the location to be used as the sale price, because it received the instant real estate from the sale price,” along with documents, such as a sales contract, to the said G and the person in charge of the said business.

Daejeon Metropolitan City deliberated upon the application amount of the location subsidy of KRW 1,091,729,00 (i.e., the State subsidy of KRW 818,797,97,000) as the amount of the State subsidy of KRW 272,93,00,00, and applied to the Knowledge Economy Department for the provision of KRW 818,797,000 out of the said location subsidy as the State subsidy on May 22, 2009. The Knowledge Economy Department decided to grant the State subsidy of KRW 818,796,00 as the location subsidy to the company of this case around July 27, 2009.

Accordingly, around November 3, 2009, Daejeon Metropolitan City decided to grant the location subsidy of KRW 1,091,729,00 (=State subsidy of KRW 818,796,000) to the company of this case (=State subsidy of KRW 272,93,00).

The above location subsidy paid according to the decision to grant the knowledge economy department and Daejeon Metropolitan City shall be "Special Act on Balanced National Development", "standard for the State's financial support to attract relocating enterprises of local governments" and " Daejeon Metropolitan City."