On November 29, 2013, the defendant was sentenced to three years of imprisonment for a violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Embezzlement) at the Dong Branch District Court of Seoul, Seoul, and the judgment was finalized on May 2, 2014. On November 26, 2015, the defendant was sentenced to nine months of imprisonment for a violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Embezzlement) and the judgment was finalized on December 4 of the same year.

[] The criminal facts, listed corporation, or any other corporation specified by Presidential Decree (hereinafter referred to as "corporation obligated to submit a business report") shall submit the business report to the Financial Services Commission and the Exchange within 90 days after the end of each business year, and a corporation obligated to submit the business report shall submit the business report for six months from the commencement date of each business year (hereinafter referred to as "half-yearly business report") and the business report for three months and nine months from the commencement date of each business year (hereinafter referred to as "half-yearly business report") to the Financial Services Commission and the Exchange within 45 days after the expiration of each period, respectively, and shall not make a false statement or representation of any material facts, nor sign a false statement or representation of any material fact, or shall not prepare and disclose any false financial statements or consolidated financial statements in violation of the accounting standards.

Nevertheless, the Defendant served as F director from March 2, 201 to March 4, 2013, while serving as F director. On May 15, 2012, the Defendant: (a) sold 4,560,000 shares of FF’s own stocks from August 17, 201 to October 11, 201; (b) sold 4,567,000 shares of FF’s own stocks from August 17, 2011 to 4,567,024 shares; and (c) sold 7,024 shares of F’s own stocks from August 17, 201 to 7,024 shares, but at the same time, stated the quantity of F’s own stocks owned in kind in the quarterly report “current status of acquisition and disposal of treasury stocks” of F’s own stocks in the financial statements attached to the said quarterly report; and (d) appropriated F’s treasury stocks in the column of 4,567,024.