When Defendant 2, Defendant 3, and Defendant 4 fail to pay each of the above fines, each of the above Defendants shall be confined in a workhouse for the period calculated by converting the amount of KRW 1,00,000 into one day.

The 48 days of detention prior to the rendering of a judgment shall be included in the above sentence against Defendant 1, and the 96 days shall be included in the above imprisonment against Defendant 2.

However, from the date of the conclusion of the judgment, the execution of the above sentence shall be suspended for one year and six months for Defendant 1, and the execution of the above imprisonment shall be suspended for two years for Defendant 2 and Defendant 3.

The defendant 1 is not guilty of violating the Securities and Exchange Act.

B. Nonindicted Co. 1, 200; Nonindicted Co. 1, 200; Nonindicted Co. 2, 300, 400,000,000 won (hereinafter “Nonindicted Co. 1”); Defendant 2, 400,000 won (hereinafter “Nonindicted Co. 1”) were to be transferred to Nonindicted Co. 1 in the name of Nonindicted Co. 5; Nonindicted Co. 1, 40,000,00 won (hereinafter “Nonindicted Co. 1”) and to be transferred to Nonindicted Co. 4 in the name of Nonindicted Co. 1, 200; Nonindicted Co. 2, 50,000,000 won (hereinafter “Nonindicted Co. 5”) were to be transferred to Nonindicted Co. 1, 50,00,000 won (hereinafter “Nonindicted Co. 1, 200,000,000 won”) were to be transferred to Nonindicted Co. 1, 200,000 won (hereinafter “Nonindicted Co. 1, Ltd. 2”).

2. A. Defendant 2

(1) From March 201 to April 1 of the same year, Defendant 1 contacted Defendant 3 from March 2001, to the first police officer of the same year, “Non-Indicted 2 corporation merges with Non-Indicted 1 corporation. It is an investment made by Non-Indicted 9 in the fraud of Non-Indicted 8. The share price of Non-Indicted 2 corporation is high, and Non-Indicted 2 corporation requests to acquire one unit of convertible bonds issued by Non-Indicted 2 corporation.” On the 7th of the same month after he received a positive answer from his partner, Non-Indicted 1 and Defendant 3 together with Defendant 1, Non-Indicted 2 and Non-Indicted 1 corporation’s executive officer to confirm a merger plan by means of stock exchange between Non-Indicted 2 and Non-Indicted 1 corporation, and the defendant 3 did not subscribe to the above convertible bonds from Non-Indicted 1 corporation on the 17th of the same month of the same month and did not subscribe to the above convertible bonds to the public account of Non-Indicted 200,000 million won following the following day.

(2) On April 24, 2001, one unit was respectively acquired in the name of the Defendant in the name of KRW 1,087,000,000 each under the name of Nonindicted Company 6, and the securities account in the name of the Defendant established at the order branch of Samsung Securities and the securities account in the name of Nonindicted Company 6 established at the order branch of Samsung Securities on the same day, and the securities account in the name of Nonindicted Company 6 established at the order branch of Samsung Securities and used important information that was not disclosed to the public that was officially known in the course of performing duties as executive officers and major shareholders of Nonindicted Company 2, a KOSDAQ-registered corporation

B. Defendant 3

As described in each subparagraph of paragraph (1) above, Defendant 2 acquired information on the merger between Nonindicted Co. 2 and Nonindicted Co. 1, and acquired the above convertible bonds after acquiring them from Defendant 2, who is an executive officer of Nonindicted Co. 2 and major shareholder of Nonindicted Co. 2, who is a KOSDAQ-registered corporation, and received important information that was not disclosed to the public in connection with the business of Nonindicted Co. 2, who became aware of in the course

C. After consultation with Defendant 1, Defendant 2 asked Nonindicted 5, a person in charge of the duties of Nonindicted 4 Co. 3’s asset management company, to accept convertible bonds in the manner as set forth in paragraph (1) of the above 2.A., Defendant 2, upon the request of Defendant 1, to grant KRW 175 million per unit of convertible bonds, a sum of KRW 5.5 million per unit of convertible bonds to Defendant 2, who was in charge of the duties of Nonindicted 4 Co. 3’s asset management company.

(1) Defendant 1, Defendant 2, or Defendant 3 in collusion

Defendant 1 stated to Defendant 3 that “In addition to KRW 1.85 million, the acquisition price of KRW 1.75 million shall be prepared in cash and given to Defendant 2.” Defendant 3, around April 17, 2001, deposited KRW 175 million in cash at the Han River branch of the Korea Light Bank via Dongin’s Dongin Nonparty 10 and delivered it to Defendant 2, Defendant 2, who was Defendant 5,000,000 won in cash at the near the same day, on the roads near the Han River University of Korea, and delivered KRW 175,00,000 in cash to Nonindicted 5.

(2) Defendant 1 and Defendant 2 conspired

Defendant 1 provided Defendant 2 with a security of KRW 1.4 billion deposit of Nonindicted Co. 1’s corporation deposited at the Heero branch in order to offer the acceptance price and the honorarium to Nonindicted 5, and provided Defendant 2 with a loan of KRW 1.266 million at the above branch. On the 20th day of the same month, Defendant 2 provided Defendant 2 with a reward of KRW 350 million in cash at the parking lot near the Jongno-gu Seoul seeds and seedlings parking lot;

In relation to the duties of a person who administers another person's business, money and valuables were provided in an illegal solicitation.

3. Where a person acquires 5/100 or more of the total number of stocks, etc. of a stock-listed corporation or Association-registered corporation, he/she shall, within five days from such day, report the changes in the number of stocks, etc. to the Financial Supervisory Commission and the Stock Exchange within five days from such day, if the holding ratio is changed by not less than 1/100.

A. Defendant 2

(1)Around April 24, 2001, a conversion price of KRW 860 per share was acquired at 2,325,580 per share for two convertible bonds of Nonindicted Co. 2 Co. 2 Co., Ltd. and converted them into shares, without reporting the status of holding within five days from that date, even if the total number of outstanding shares was acquired at 13,696,162 share and 16.9 percent of the total number of outstanding shares was acquired;

(2) On May 9, 2001, even if one of the above convertible bonds was sold to Nonindicted 11, it did not report the change rate within five days from that day, and

B. Defendant 3

(1) Around April 24, 2001, a conversion price of KRW 860 per share was acquired at KRW 1,162,790 per share of the convertible bonds of Nonindicted Co. 2 Co. 2 Co., Ltd. and converted them into shares, without reporting the status of holding within five days from that date, even though the total number of shares issued was acquired at KRW 13,696,162 per share and was acquired at KRW 8.5 percent of the total number of shares issued;

(2) Around June 7, 2001, Defendant 2, etc. sold the said convertible bonds on condition that he would receive 500,000 shares of Nonindicted Company 2 from Defendant 2, etc., but did not report the change rate within five days from that day.

4. Defendant 4

No person shall make a false or misleading transaction that leads to a change in the market price of securities with the intention of inducing the transaction on the securities market or Association brokerage market, or cause a false or misleading transaction to cause a change in the market price, with the intention of inducing the transaction on the securities market or Association brokerage market.

On April 27, 2001: (a) around 12:48:12, 201; (b) the purchase price of KRW 2,480 per share was 1,146,06,063 per share by using an account opened in the name of the defendant in the business register of securities; and (c) the purchase price of KRW 1,256,70 per share was 1,256,700 per share at the same price; and (d) from around 26th of the same month to May 2 of the same year, the high-priced purchase order was issued 8,94,306 shares (excluding Nonindicted 12 accounts) more than 14 times during the period from around 26th of the same month, such as the purchase order of KRW 1,256,70 per share at the same price; and (e) the purchase order of KRW 2,770 per share via an account opened in the name of the defendant at the same branch of new interest securities; and (e. (iii 1, class 394) the purchase order.

1. Protocol concerning the interrogation of the Defendants by the prosecution

1. Each prosecutorial statement on Nonindicted 13, 10, 11, and 14

1. Each written statement of Nonindicted 10, Nonindicted 15, Nonindicted 16, Nonindicted 17, Nonindicted 18, and Nonindicted 11

Defendant 1: Articles 357(2) and (1), and 30 of the Criminal Act

Defendant 2 and 3: Articles 207-2 subparag. 1, 188-2(1)1 and 2, 201 subparag. 5, 200-2(1), and 214 of the Securities and Exchange Act, Article 357(2) and (1), and 30 of the Criminal Act

Defendant 4: Subparagraph 2 of Article 207-2 of the Securities and Exchange Act (amended by Act No. 6695 of April 27, 2002) and Article 188-4(2)1 of the Securities and Exchange Act

1. Aggravation of concurrent crimes (defendants 1, 2, 3);

Article 37 (former part), Article 38 (1) 2, and Article 50 of the Criminal Code

1. Attraction in a workhouse (Defendant 2, 3, 4);

Articles 70 and 69(2) of the Criminal Code

1. Calculation of days of pre-trial detention (Defendant 1, 2);

Article 57 of the Criminal Code

1. Suspension of execution (Defendant 1, 2, 3);

Articles 62(1) and 51 of the Criminal Code

A person subject to the prohibition of use of undisclosed information under Article 188-2 (1) of the Securities and Exchange Act is limited to officers, employees, agents, outside auditors under audit contracts with outside directors such as major shareholders, etc., securities banks, bank banks, attorneys-at-law or accountants, consulting companies, etc. who have entered into an underwriting contract for the purpose of public offering or sale of securities, and quasi-internals who have received material undisclosed information from outside directors. The above defendant does not constitute internal or quasi-internals as officers of non-indicted 1 corporation who have entered into a contract with non-indicted 2 corporation for A&D, and even if the above defendant is deemed to be an internal or quasi-internals, the defendant's conclusion of the contract with the pertinent corporation under Article 188-2 (1) 4 through 5 of the Securities and Exchange Act is done on April 25, 2001 (the previous contract should be deemed to be the preparation phase) and thus, it cannot be deemed that the above defendant entered into the contract with the pertinent corporation prior to that time.

However, there is room to view that Defendant 1 and Defendant 2 conspired with Defendant 1 and Defendant 2 to have discussed about the above swap transaction at the same place on April 7, 2001, and there is room to view that Defendant 1 and Defendant 2 conspired to use the undisclosed information, and thus, Defendant Park Jong-chul who has no identity such as the insider should be liable for a crime pursuant to Article 33 of the Criminal Act. However, in light of the fact that Defendant 1 had already been aware of such information from March 2001 to Defendant 3 from March 7, 2001, it is not natural to view that Defendant 1 had again made the above remarks with Defendant 2 with the intention of conspiracy, contrary to the previous intention.

Therefore, the facts charged against the above defendant cannot be seen as a crime.

Next, according to the testimony of Defendant 4, among the facts charged regarding Defendant 4’s market manipulation, the part on the account in the name of Nonindicted 12 and Nonindicted 19 of the witness, he managed the account independently by the end of April 2001. Thus, in light of the fact that the Defendant traded the shares of Nonindicted 2 Co., Ltd., which are the same as the shares that it traded without an opinion exchange with the above Defendant, there is a little doubt about such testimony, but it is difficult to view such simple opinion exchange as a public offering, and there is no other evidence to prove the guilt of the above Defendant despite the witness’s testimony.

Therefore, among Defendant 1’s violation of the Securities and Exchange Act and Defendant 4’s violation of the Securities and Exchange Act, the part on the account in the name of Nonindicted 12 should be acquitted. However, as long as Defendant 4 was convicted of the violation of the said Securities and Exchange Act, which is a comprehensive crime with respect to Defendant 4, the judgment of innocence shall not be rendered in the text

Judges Park Dong-young