The costs of appeal are assessed against each party.

1. As to the Defendant’s ground of appeal

A. Article 125(1) main text of the former Financial Investment Services and Capital Markets Act (amended by Act No. 11845, May 28, 2013; hereinafter “former Financial Investment Services and Capital Markets Act”) provides that where a purchaser of securities suffers damage due to a false description or representation of a material fact in a registration statement (including a corrective registration statement and accompanying documents) and an investment prospectus, or an omission of a description or representation of a material fact, the person who entered into an underwriting agreement for the securities shall be liable to compensate for the damage therefrom (Article 125(1) main text): Provided, That the proviso to Article 125(1) of the former Financial Investment Services and Capital Markets Act provides that a person who shall be liable for damages shall not be held liable if he/she proves that he/she was unable to know such fact although he/she exercised reasonable care, or that the purchaser of the securities knew such fact at the time of offering to acquire the securities (Article 125(1) proviso to the Act). Furthermore, notwithstanding Article 126(1) of the presumption of the amount of damages, the person shall not be held liable.

(Article 126, Section 2). (b)

Comprehensively taking account of the adopted evidence, the lower court: (a) the Defendant participated in a representative company and the underwriter of the instant securities in relation to the capital increase of KRW 12,000,000,000 (hereinafter “instant capital increase”); and (b) the registration statement as of September 28, 2010 and the investment prospectus as of December 7, 2010 on the instant capital increase as of December 28, 201, regarding the capital increase of KRW 28,680,000,000 (hereinafter “instant capital increase”); and (c) the instant capital increase as of September 28, 2010 and the prospectus as of December 7, 2010.