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A defendant shall be punished by imprisonment for two years.
However, the execution of the above punishment shall be suspended for four years from the date this judgment becomes final and conclusive.
Reasons
Punishment of the crime
1. Primary market price manipulation (from August 24, 2010 to November 9, 2010)
A. H Co., Ltd. (hereinafter “H”) was a company listed on the KOSDAQ on July 25, 200, which manufactures and sells heavy operating losses in 2008 and 2009, and operating losses in -6,756,265,445, and net operating losses in 2008 -13,426,807,366, -17,845,716, and -1,017,845,716, and net operating losses in 2009 -7,57,57,738,282, and -7,57,738, and282, of which the net operating losses in 209 were in the form of capital stock. This was required to increase the status of the company to be designated due to the issues of KOSDAQ management.
Accordingly, H took the process of issuing new shares from August 2010. At the time, H’s offering of new shares took place. On August 24, 2010, H’s closing price of KRW 310 that falls short of the outstanding share price of KRW 500,000,000 that is below the par value of KRW 500,000,000, decided to issue new shares with capital increase of KRW 9 billion on October 5, 2010. However, in order to ensure the success of issuing new shares with a face value of KRW 500,00,000, the share price needs to be artificially supported.
Accordingly, the representative of H, through J, proposed a condition that he will participate in the management of the company by granting the defendant the right to form a half of the company photographs in case of success in the capital increase with capital increase. The defendant participated in the management of the company together with the success in the capital increase with a lower price, but accepted the proposal with a view to obtaining profits from the market price by selling at a lower price after the success in the capital increase with capital increase.
Accordingly, the Defendant intended to purchase H shares directly, and intended to artificially support the market price by submitting large volume manipulation orders, such as high-priced purchase, when having K and L purchase the H shares.
B. The Defendant, as above, committed stock price manipulation with K and H.