Defendant

A Imprisonment for six months, and Defendant B shall be punished by a fine of 1,000,000 won.

However, as to Defendant A, this shall not apply.

Punishment of the crime

A person who comes to hold stocks, etc. of a stock-listed corporation in bulk (referring to cases where the total number of stocks, etc. held by the person himself/herself and his/her specially related persons is 5/100 or more of the total number of the stocks, etc.), shall report to the Financial Services Commission and the Exchange on the status of holding, purpose of holding, details of major contracts on the stocks, etc. held by him/her, and where the total number of stocks, etc. held by him/her has changed by 1/100 or more of the total number of the stocks, etc., he/she shall report the changes in such changes to the Financial Services Commission and the Exchange by the 10th day of the month following the month in which such changes occurred,

Nevertheless, the Defendants did not report their holding status, etc. to the Financial Services Commission and the Exchange until August 4, 2010, holding 265,246, and 5.22% of the shares of (State) D, a corporation listed on KOSDAQ, using 51 securities accounts in the name of the Defendants, ASEAN, and branch C, etc. on their own account at around July 28, 2010. After that, the Defendants did not report each change to the Financial Services Commission and the Exchange on a total of 20 occasions, such as the list of crimes (1) from November 23, 2010 to September 24, 2013.

In addition, on December 26, 2012, the Defendants submitted to the Financial Services Commission, etc. a report stating “340,000 shares, 5.51%” as of December 20, 2012, the sum of the number of shares, etc. held by the Defendants is “56,514, 9.03%” as of December 20, 2012, and submitted to the Financial Services Commission, etc. a false report stating the number of shares held and holding ratio by the same method three times in total from around that time to February 5, 2013, as shown in the separate list of crimes (2).

As a result, the Defendants conspired to do so by the stock listed corporation.