The appeal is dismissed.

The costs of appeal are assessed against the defendant.

The grounds of appeal are examined (to the extent of supplement in case of supplemental appellate briefs not timely filed).

1. As to the grounds of appeal Nos. 1 and 2, the return system of short-swing profits under Article 172(1) of the Financial Investment Services and Capital Markets Act (hereinafter “Capital Markets Act”) is likely to use undisclosed inside information in cases where an insider of a stock-listed corporation causes an accident to its stocks, etc. within a short period of not more than six months, a transaction itself is allowed, but instead, a strict liability is acknowledged to allow an insider to return profits acquired from such transaction to a corporation without asking whether the insider actually used undisclosed inside information or whether the insider intended to gain profits by using undisclosed inside information, thereby indirectly regulating the insider’s trading of stocks, etc. using undisclosed information. Accordingly, in cases where Article 172(1) of the Capital Markets Act is not applicable, the exception under Article 172(6) of the Enforcement Decree of the Financial Investment Services and Capital Markets Act (hereinafter “Enforcement Decree of the Financial Investment Services and Capital Markets Act”) is limited to the scope of exceptions under Article 198 of the Enforcement Decree of the Financial Investment Services and Capital Markets Act, and thus, it does not fall under Article 18(1) of the Enforcement Decree of the Act.