A A Fine of 5,00,000 won, Defendant B of 10,000,000 won, and Defendant C of 7,000,000 won, respectively.

Defendant

C is the Chairperson of D Co., Ltd. established for the purpose of corporate acquisition and merger (hereinafter referred to as “D”), Defendant B is the representative director of D, and Defendant A is a person who has served as D director.

On October 14, 2010, the Defendants entered into a contract with E (hereinafter “E”) to acquire the management right of F, G and E, a major shareholder of H, a KOSDAQ-registered corporation, under the name of D (hereinafter “E”), and then came to know of the fact that E’s former management entered into an accounting audit as if the cash of KRW 3 billion was stored in the company, but in fact, it was at risk of listing if it was discovered that the cash of KRW 3 billion was not stored in the annual accounting audit, and that there was a risk of listing if it was discovered in the annual accounting audit. On October 27, 2010, the Defendants: (a) concluded a contract to acquire KRW 80,00 shares of H (hereinafter “H”) from H (hereinafter “the major shareholder of H”) to acquire KRW 728,000,000 from H (the major shareholder of H) by borrowing KRW 3 billion in cash from the outside to treat the down payment; and (b) subsequently, (c) loaned the down payment to J immediately after being audited around 101.

On November 9, 2010, the Defendants filed a corrective report with the Financial Services Commission to accept KRW 80,000 shares of H 80,000 won at the Gangnam-gu Seoul E office, and submitted the report to the said Commission, with the effect that “the contract amount of KRW 3 billion was paid in cash with its own possession funds, which is the date this contract was concluded,” on November 1, 2010, the Defendants made a false statement on the material facts of the said report, and Defendant A, a director in charge of reporting the material facts of the said report, signed a written confirmation document confirming that there was no false statement on the material facts of the said report, and submitted it to the said commission.

Summary of Evidence

1. Defendants’ respective legal statements

1. Each of the Defendants’ names.