All appeals are dismissed.

The costs of appeal are assessed against the plaintiffs.

The grounds of appeal are examined.

1. As to the ground of appeal on Article 429 of the Capital Markets Act

(a) The Financial Services Commission may impose a penalty surcharge on a person who filed the registration statement, or the director, etc. of the issuer at the time of filing the registration statement (including the corrective registration statement and accompanying documents) with a false description or representation of a material fact in the registration statement, or a corporation obligated to submit the business report with a false description or representation of a material fact in the business report, or

[The former Financial Investment Services and Capital Markets Act (amended by Act No. 11845, May 28, 2013; hereinafter “Capital Markets Act”).

(1) Articles 429(1)1 and 429(3)1 and 430(1) of the Act provides that “material fact” refers to “material fact that may significantly affect investors’ reasonable judgment on investment or the value of the pertinent financial investment instrument.”

(See Supreme Court Decision 2014Du36259 Decided February 18, 2016, etc.). According to Articles 119(6), 159(2) and (4), and 160 of the Capital Markets Act, the latter part of Article 120 of the Enforcement Decree of the said Act (Amended by Presidential Decree No. 22197, Jun. 11, 2010); Articles 125(1)3(f) and (3), 168(2)9, and 170(1); Articles 2-6(9) and 4-3(7) of the Regulations on Issuance and Public Disclosure of Securities (Amended by Act No. 2009-41, Jul. 6, 2009); and Article 8-1-1-1 of the Standards for preparing a public disclosure form enacted by the Governor of the Financial Supervisory Service pursuant to delegation by the Financial Services Commission, the name, etc. of the largest shareholder shall be entered in the registration statement, etc.

According to Article 1-1-2 subparag. 7 of the standards for the preparation of disclosure forms, the largest shareholder is the shareholder under Article 9(1) subparag. 1 of the Financial Investment Services and Capital Markets Act, i.e., the shares held by the principal and a person with a special relationship prescribed by Presidential Decree with him/her on his/her own account, regardless of