The judgment of the court below is reversed.

A defendant shall be punished by imprisonment for not more than ten months.

Provided, That the above punishment shall be imposed for two years from the date of the final judgment.

1. The summary of the grounds for appeal is as follows: (a) shares in the name of G and I are substantially owned by D Co., Ltd.; (b) G and I are in the position of the custodian as the nominal owner of the said shares; and (c) the Defendant, in collusion with the said companies, sold the said shares without any authority and intended to withdraw the said shares, thereby recognizing the criminal intent of embezzlement and the intent of unlawful acquisition.

Nevertheless, the court below erred by misapprehending the legal principles and thereby adversely affecting the conclusion of the judgment.

2. Summary of the facts charged and the judgment of the court below

A. The summary of the charge was from May 31, 2007 to January 29, 2008, the Defendant served as a director of the Victim D Co., Ltd. (hereinafter “D”).

On October 16, 2007, F, a de facto manager of the victim company, was allocated new shares equivalent to KRW 1,463,415, and KRW 3 billion in the name of G [G, representative: H: hereinafter “G”) in the name of G (I, representative: J. hereinafter “I”) located in Hong Kong while offering capital increase with respect to the victim company, and paid the above new shares acquisition price by borrowing KRW 5 billion in total from K and L, etc. on October 16, 2007. At that time, F, a de facto manager of the victim company, repaid the above borrowed shares with the victim company’s deposit, and the representative director managed the shares acquired in the name of the above company, thereby the victim company was in the actual ownership of the said shares, and G and I were in the status of keeping the victim company as the nominal owner of the said shares.

The defendant, around January 2008, embezzled the public funds of the victim company and escape abroad, making it difficult to recover the claim amounting to approximately KRW 4 billion against the defendant F, and he disposed of the above shares and thought to acquire the proceeds of sale.

On July 2008, the Defendant, a representative of G with a usual friendship, and J, a representative of H and I, who is a representative of H and I.