1. The Defendant was sentenced to one year of imprisonment for fraud at the Seoul Central District Court on July 2, 2009, and the execution of the sentence was completed on February 7, 2010 at the Ansan Prison.

2. A public offering-related D and E, together with F, owned approximately 1.8 million shares of H Co., Ltd. (hereinafter “H”) by forming a “G association” and held approximately 1.8 million shares. On March 24, 2009, around H’s general meeting of shareholders, they failed to meet the nearest list difference (30:28).

After that, around December 23, 2009, I, the largest shareholder of H (hereinafter "I") tried to defend management rights on the condition that I acquire 500,000 won per share of G union's 500,000 won per share.

However, among the Does in which the acquisition of shares by transfer pursuant to the above agreement was in progress, some of the shareholders of the I raised an issue against H’s purchase of shares on the part of G association at a price higher than the actual share price of H, and thus, it became impossible to acquire shares by the above agreement. Accordingly, H was exposed to the risk of hostile merger.

J and K management, after artificially raising the share price, purchased the shares of G unions, such as D and E at low price, defends the management right in a stable manner, sell some of the shares on the side of H's largest shareholder, and realizing profits. On July 2010, H management requested L to operate the market price on or around July 2010, and sold shares at the time when the share price increase due to L's operating price to D and E, a side of G unions, and E, and sold shares at the time of agreement, 50% out of profits.

L, D, and E accepted the above proposal, and accordingly, H J, as well as K, in order to realize marginal profits from the quantity of L, G association's possession by manipulating the share price, H H's share price through H's market price operation, in order to avoid the risk of large-scale mergers and to obtain marginal profits.