1. On the grounds of appeal by the prosecutor, the court below affirmed the judgment of the court of first instance which acquitted the Defendant on the ground that there was no proof of crime as to the use of deceptive scheme by the evasion of the duty to report changes in stocks held in bulk, on the following grounds: (a) the misunderstanding of the fact that each of the instant facts charged was caused using the report on the issuance of overseas securities, which omitted the conditions of the lending and borrowing; (b) the

In light of the relevant legal principles and records, the above judgment of the court below is just.

There is no error of exceeding the bounds of the principle of free evaluation of evidence against logical and empirical rules, or of misapprehending the relevant legal principles.

2. As to the Defendants’ grounds of appeal, Article 188-4(4) of the former Securities and Exchange Act (amended by Act No. 8635 of Aug. 3, 2007 and repealed by the Financial Investment Services and Capital Markets Act of Feb. 4, 2009; hereinafter “former Securities and Exchange Act”) provides that “no person shall commit any of the following acts in connection with the sale and purchase or other transaction of securities” under subparagraph 1 of the same Article, and stipulates that “In order to obtain unjust benefits, any person shall intentionally spread false market price or false facts or other rumor or use deceptive schemes.”

The purpose of the former Securities and Exchange Act is to protect individual investors’ interests participating in securities transactions and protect investors’ trust in general securities markets, thereby contributing to the development of the national economy, as such prohibition of fraudulent unfair trading by the former Securities and Exchange has an impact on many people on fraudulent illegal trading in securities transactions.

In light of the purpose of the former Securities and Exchange Act and the legislative intent of the same provision, the above provision shall be applied.