【The background of the case】 The Defendant was the former largest shareholder of AE Co., Ltd. (hereinafter “AE”), and was working as the president in charge of the overseas sector as the actual owner.

AE was established on October 13, 1973 and listed on the securities market on August 25, 1989, and was designated as a company affiliated with other MZ after IMF and was separated from the MZ group on April 15, 200.

Around January 16, 2008, the Defendant borrowed 2.1 billion won as collateral from NB, and 15 billion won as collateral, from 18 billion won as the largest shareholder, and borrowed 5 billion won bonds from LB of NB, which is a bond company, as collateral for AE’s shares. On August 22, 2008, the Defendant borrowed 1.2 billion won from NB, a bond company, as collateral for 7.12 billion won as collateral, and borrowed 2.1 billion won as collateral on August 18, 2008. In the case of AE, the net loss per the end of December 2, 2006, as collateral for 4.6 billion won, and the net loss per the end of December 13, 2007, would have continuously deteriorated the financial structure due to the decline of the shares at the end of 5.1 billion won per stock as collateral.

Accordingly, the Defendant, the actual inspection owner of AE, was willing to artificially support the share price by making a false public announcement to the effect that AE entered into a single supply contract with the Red Congo or Washington, in which the Defendant actually owned, under the above crisis.

【Contents of a crime】 No person shall commit any act using a deceptive scheme in order to gain unjust profits in connection with the sale and purchase or other transaction of securities, or make a false representation of important matters, or use a document in which any fact required is omitted, thereby inducing misunderstanding of other persons to obtain money or other benefits.

1. On April 24, 2008, the Defendant made a false public announcement from April 24, 2008, with AE from April 24, 2008 and June 1, 2008.