Where a person who holds stocks, etc. of a stock-listed corporation has changed by 1/100 or more of the total number of such stocks, etc., he/she shall report the changes to the Financial Services Commission and the Korea Exchange within five days from the date of such change.

(State) On March 11, 2010, the Defendant, as the representative director of C, entered into a contract for acquisition by transfer of stocks and management rights of E and D Co., Ltd., a listed corporation, and received KRW 1.4 million of the said D shares. On March 16, 2010, the Defendant received KRW 6.3 million of the said D shares and received KRW 7.7 million of the said D shares, and held shares of a listed corporation by transfer of shares.

Since then, the Defendant sold and disposed of the said D Shares 6,300,000 shares owned between around March 17, 2010 to March 22, 2010, but did not report the changes to the Financial Services Commission and the Korea Exchange.

Accordingly, the Defendant violated the duty of disclosure due to the change of more than 1/100 of the total number of D Shares, and the obligation to report it to the Financial Services Commission and the Korea Exchange even though it occurred.

Summary of Evidence

1. Each prosecutor's statement of E, F, G, and H;

1. Notice of suspected providers of violation of the Financial Investment Services and Capital Markets Act, copies of each e-mail, contracts for acquisition of stocks and management rights, reports on the status of stocks, etc. held in bulk, articles, certificates of receipt, certificates of custody and certificates by date D, certificates of confirmation, written agreement for cancellation of agreement, written agreement for cancellation of agreement, certificates of confirmation, agreement for cancellation of agreement, news articles and news articles;

1. Funds and stock flow, the instrument and process to which A arrives, the response to a request for inquiry and public disclosure, the date of cases based on evidentiary materials, and each written judgment;

1. Application of statutes concerning criminal records;

1. The overall reasons for sentencing under Articles 445 subparag. 20 and 147(1) of the Financial Investment Services and Capital Markets Act for the crime, and the escape while being tried.