Defendant shall be punished by a fine of KRW 2,000,000.

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

Punishment of the crime

On December 28, 2011, the Defendant was sentenced to two years in Seoul High Court for special larceny, etc., and the said judgment became final and conclusive on April 12, 2012.

1. A person who comes to hold stocks, etc. of a stock-listed corporation shall report to the Financial Services Commission and an exchange on the status of holding such stocks, purpose of holding such stocks, details of major contracts, etc. concerning such stocks held, etc. within five days from the date on which such change is made, and where the total number of stocks, etc. held is changed by at least 1/100 of the total number of such stocks, etc

On November 25, 2010, the Defendant decided to acquire shares of 1,636,126 shares of common shares of 10,469,007 (former C) by acquiring and exercising preemptive rights to new shares of 10,469,007 shares, and thus, the Defendant violated the obligation to report shares, etc. by failing to report the current status, etc. to the Financial Services Commission and the Exchange until December 2, 2010, even though it did not report the current status, etc. to the Financial Services Commission and the Exchange until December 2, 2010.

2. An executive officer or major shareholder of a stock-listed corporation shall report the ownership status of specific securities, etc. owned on his/her own account regardless of in whose name the ownership of such specific securities, etc. is changed, and the details thereof to the Securities and Futures Commission and the Exchange within five days from the date on which such change occurs, respectively;

On November 25, 2010, the Defendant owned 250,00 shares of common shares of (State)B, and acquired and exercised preemptive rights to 10,469,007 shares, thereby becoming a major shareholder of (StateB), who is a stock-listed corporation, until December 2, 2010.