Defendant shall be punished by a fine of KRW 15,000,000.

When the defendant does not pay the above fine, 100,000 won.

Punishment of the crime

On August 23, 2013, the Defendant was sentenced to two years of imprisonment in Seoul High Court for the violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Embezzlement) and three years of suspended execution, which became final and conclusive on October 31, 2013.

The Defendant is the representative director of a corporation B (hereinafter referred to as “B”).

No one shall trade, entrust or be entrusted with trading securities with the intention to attract anyone to trade such listed securities, creating a misleading appearance of active trading or creating a fluctuation in the market price of such securities.

Nevertheless, on August 201, 201, the Defendant: “If B’s share price falls below 2,300 won, the Defendant purchased and held B shares because it is necessary to ensure stability of B’s stock price since B’s purchase and holding B shares was conducted. It is expected that a new business (E, health drinking business) will be carried out in B, and there is a pre-sale plan to make public announcement of good contents, such as the attraction of WW and CB investment funds. In preparation for the loss, the Defendant suggested that “If B’s share price falls below 2,300 won, it would be 20% of the purchase and sale amount as collateral and guarantee principal at the time of the loss.” In addition, the Defendant proposed that B’s share price change through a fraudulent means.

C) From D, “If you leave cash KRW 200 million to be offered as security, I will purchase the degree of KRW 1 billion of B’s shares. To that extent, if the share price exceeds KRW 3,500,000, and if you offer KRW 300,000,000 as additional security, I would purchase the shares of KRW 2 billion of B’s shares. In addition, I would like to arrange the shares of KRW 4,000 and return KRW 500,000,000, which was entrusted as security, to the Defendant.”

C The defendant, who had the defendant prepare a security for stock purchase through F, received KRW 200,000,000 from the defendant.