On October 27, 2011, the Defendant was sentenced to three years of imprisonment for the violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Fraud) in the Seoul Central District Court on March 27, 201, and the judgment became final and conclusive on March 27,

Criminal facts

around January 1, 1987, the Defendant joined the Victim C Co., Ltd. (hereinafter referred to as “victim”) and served as the deputy head in charge of funds belonging to the Financial Strategy Team from January 2003 to October 2005, and has been in charge of the financial management of the Victim Co., Ltd.

1. Around February 4, 2004, the Defendant: (a) released 100,000 common shares of Hanjin Shipping Co., Ltd. (hereinafter “Korea Jin Shipping”), a victim-owned company (hereinafter “Korea Jin Shipping”), which was in the course of business keeping the Kinz securities account in small and medium-gu Seoul, Seoul, in kind; and (b) embezzled KRW 56,196,707,50 of the market price of 2,530,170 from around that time to December 7, 2004 in the form of the above account; and (c) sold the profits acquired therefrom in the form of personal stock transaction by distributing it to the account in the name of the Defendant, etc.; and (d) embezzled profits acquired therefrom in the form of personal stock transaction.

2. Around December 2005, the Defendant purchased the Korea Coast Guard General Shipping Co., Ltd. in preparation for an accounting audit at the end of the year after committing the crime, as described in paragraph (1), and entered the total of 2,530,170 shares in the Korean Investment Securities Account under the name of the victim company, including 1,882,190 shares, and 647,980 shares in the Korean Investment Securities Account under the name of the victim company.

On January 20, 2005, the Defendant released 400,000 common shipping shares, which are owned by the victim company that had been in custody in the account of the victim company, at the small and medium-gu Seoul Jung-gu Joint Branch of Mzz Securities Co., Ltd. around January 20, the Defendant released 400,000 shares in kind around February 24, 2005, including the release of 400,000 shares into the market price of 19,760,000 shares in the name of the Defendant, and sold them by distributed to the account of treatment securities in the name of the Defendant.