A person who holds stocks, etc. of a stock-listed corporation (referring to cases where the total number of stocks, etc. held by him/herself and his/her specially related persons is at least 5/100 of the total number of such stocks, etc.) in bulk shall report to the Financial Services Commission and the Exchange as prescribed by Presidential Decree, and where the total number of such stocks, etc. is changed by at least 1/100 of the total number of the stocks, etc. (excluding cases where the number of such stocks, etc. is not changed, or cases prescribed by Presidential Decree) within five days from the date of change, he/she shall file a false statement or indication of such change with the Financial Services Commission and the Exchange, or enter or indicate important matters prescribed by Presidential Decree, such as the type and number of the stocks held or changed, the date of acquisition or disposal, etc., within five days from the date of change, and no person shall make a false statement or indication of such change in the matters, or make such statement or indication.

On January 5, 2012, the Defendant entered into a contract on the acquisition of shares to purchase 9,854,872 shares (20% of the total outstanding shares) owned by EM and EM-special related parties to EN Co., Ltd. and EO owned by EO (hereinafter “EL”), and sold 1,500,664 shares (3.05%) out of the above shares to EE on the same day, but did not report the status of possession, purpose of holding, major contract terms and contents of holding shares, and contents thereof within five days from that day.

In addition, the Defendant did not report the status of the EL shares from January 12, 2012 to March 16, 2012, as indicated in the list of offenses, and did not report the status of the EL shares, the purpose of holding, etc. on a total of four occasions, and even if the total number of shares, etc. was changed by at least 1/100 of the total number of the shares, etc.