Defendant

Friririness

Attorney Yoon Do-ho (National Election)

Defendant shall be punished by a fine of KRW 4,000,000.

When the defendant fails to pay the above fine, the defendant shall be confined in a workhouse for the period converted by 50,000 won into one day.

Of the facts charged in this case, each of the violation of the Securities and Exchange Act after August 18, 2005 is acquitted.

The Defendant, who is the head of the ○○○○ Investment Finance Co., Ltd., the representative director, was Nonindicted 2, who was the head of the share management team of the ○○○○○ Investment Finance Co., Ltd., and Nonindicted 2, whose share ratio had not been high, had been determined by Nonindicted 2, by using the 36 securities account as indicated in the attached Table 1, supported the price of the stocks of Nonindicted 1 Co., Ltd., by issuing price

Nonindicted 2 instructed the Defendant, Nonindicted 3, etc. to make a market price manipulation order through the said securities account in which the KRW 9 billion price manipulation fund was deposited, and the Defendant, etc. conspired to make a market price manipulation order in accordance with Nonindicted 2’s instructions.

Accordingly, the Defendant and Nonindicted 4 (formerly, November 25, 2009) committed market price manipulation of the shares of Nonindicted Company 1 in the following manner:

1. Collaborative trading;

On August 9, 2005, around 09:09:47 on August 9, 2005, Non-Indicted Party 1 issued an order to sell 30,000 shares of Non-Indicted Party 1 to 3,450 won higher than that of Non-Indicted Party 1’s stock at the △△ Dong branch in Gangnam-gu Seoul, through the account in the name of Non-Indicted Party 8 at the △△dong branch in Gangnam-gu, Seoul. On the same day, around 09:09:51, 15,00 shares were purchased at the same price via the account in the name of Non-Indicted Party 15,72 shares and purchased 14,72 shares from June 23, 2005 to August 17, 2008, and concluded an agreement to sell 15,70 shares at the same price with the same method as attached Table 21 through 286 shares in the same manner.

2. Overpriced purchase;

In order to attract sale on the securities market, around August 11, 2005, at the above location, around 14:27:06, the number of 1 in the order of sale was 3,690 won through Nonindicted 8’s account at the Gangnam branch of BB securities, and the number of 1 in the order of purchase was 3,670 won higher than 40 won compared to that of the immediately preceding contract, and the price was risen by having all of 3,690 won to 3,730 won to trade at the price from 3,690 to 3,730 won, as stated in the same method from June 8, 2005 to August 17, 2005, as the number 1 to 862 times in total, as indicated in the number 1 to 862,191,967 shares purchased at the highest price, thereby causing a misunderstanding of the market price or causing a misunderstanding of the market price of Nonindicted 1 stock.

3. Participation in the market area.

For the purpose of inducing sale and purchase on the securities market, around 08:37:41 on August 9, 2005, at the same time at the same place as 08:37:41, in order to attract sale and purchase on the securities market, the estimated conclusion price was 290 won higher than that of the immediately preceding stage after selling 50,000 shares of Nonindicted Co. 1 in the same place via Nonindicted Co. 1’s 3,540 and the expected conclusion was 3,540 won higher than that of the immediately preceding stage in the status of Nonindicted Co. 1’s 3,250, as stated in [Attachment Table 4] No. 1 through 35 times in total from July 26, 2005 to August 17, 205, and thereby causing a misunderstanding of the market price or causing a misunderstanding of the market price by issuing an order to purchase shares at the market price of 402,915.

4. Sheet joints;

For the purpose of inducing sale and purchase on the securities market, around 14:59:57 on June 7, 2005, 14:59:57, the concurrent No. o. o. o. o. o. o. o. o. o. o. o. o. o. s. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o.

1. Statement of the accused in the first protocol of trial;

1. Each protocol concerning the examination of suspects by the prosecution against Nonindicted 2, 3, 13, 10, 11, 12, and 4;

1. Suspects and contents of the violation of the Securities and Exchange Act;

1. Each written judgment and summary order;

1. Article relevant to the facts constituting an offense and the selection of punishment;

Article 41(1) of the Addenda to the Financial Investment Services and Capital Markets Act (amended by Act No. 8635, Aug. 3, 2007); Article 207-2(1)2, Article 188-4(1)1, Article 30 of the Criminal Act (amended by Act No. 8635, Aug. 3, 2007); Article 207-2(1)2, Article 188-4(1)2, Article 30 of the former Securities and Exchange Act; Article 30 of the Criminal Act (amended by Act No. 8635, Aug. 3, 2007); Article 207-2(1)2, and Article 188-4(2)1 of the former Securities and Exchange Act (amended by Act No. 8635, Aug. 3, 2007; hereinafter the same shall apply)

1. Aggravation for concurrent crimes;

Article 37 (former part), Article 38 (1) 2, and Article 50 of the Criminal Act

1. Detention in a workhouse;

Articles 70 and 69(2) of the Criminal Act

1. Summary of the facts charged as to each violation of the Securities and Exchange Act after August 18, 2005

The Defendant, who is the head of the ○○○○ Investment Finance Co., Ltd., the representative director, was Nonindicted 2, and Nonindicted 2, who was the head of the share management team of the ○○○○○ Investment Finance Co., Ltd., the major shareholder share ratio of which was not high, was willing to make profits from the market by offering market price manipulation orders using 36 securities accounts as indicated in attached Table 1, and selling them to the company.

Nonindicted 2 instructed the Defendant, Nonindicted 3, etc. to make a market price manipulation order through the said securities account in which the KRW 9 billion price manipulation fund was deposited, and the Defendant, etc. conspired to make a market price manipulation order in accordance with Nonindicted 2’s instructions.

Accordingly, the Defendant and Nonindicted 4 (formerly, November 25, 2009) committed market price manipulation of the shares of Nonindicted Company 1 in the following manner:

(a) Trade in conspiracy;

On August 18, 2005, around 14:06:45 on August 18, 2005, Nonindicted Co. 1 issued an order to sell 23,900 shares of Nonindicted Co. 1 to 2,950 won higher than the amount calculated by the immediately preceding transaction, and around 14:06:45 on the same day, 26,00 shares were purchased in 2,955 won through Nonindicted Co. 6 accounts in the name of Nonindicted Co. 6 of △△△ Securities Holdings and 20,167 shares were purchased and sold from around 2,955 won, and thereafter, 20,167 shares were concluded by the same method from around that time to October 14 of the same year, as stated in the “Attachment 2” No. 287 through 1,174, and 8888,751,016 shares were conspired.

(b) Overprice;

On August 18, 2005, around 9:00:38, 200: (a) in order to attract sale on the securities market, the first selling order of Nonindicted Co. 1 was issued through Nonindicted Co. 2,920, and the first purchase order of Nonindicted Co. 1’s shares of KRW 2,930, which was 10 won higher than that of the immediately preceding contract in the situation where the first purchase order of KRW 2,830 was 2,930, and the price increase by making 170 shares sold and purchased at KRW 2,920, and thereafter, (b) around that time from that time to October 12, 200 through the same method as “attached 3” number 863 through 2,360, 863 through 360, total purchase order of KRW 1,49,960, which was issued by Nonindicted Co. 1’s shares.

(c) Participation in the urban market;

For the purpose of inducing transactions on the securities market, around August 19, 2005, at the same time at 08:49:10 a.m. for the base price determination, around 08:49:10 on August 19, 200, Nonindicted Co. 1 purchased 9,686 shares of Nonindicted Co. 1 and issued orders for the purchase of KRW 2,900 above the expected conclusion price through Nonindicted Co. 8’s accounts in the 2,700s at the same time, and the expected conclusion has increased by ordering the purchase of KRW 2,90 above the immediately preceding anticipated price from August 18, 2005 to September 28, 2005 by the same method as indicated in the 36-4,874 market price, thereby misleading or causing a change in the market price.

(d) Paper joints;

For the purpose of inducing transactions on the securities market, around 14:59:53 of August 19, 2005, concurrent No. 14:59:53 of the closing price on the securities market, at the above location, purchased 34,882 shares of Nonindicted Co. 1 Company 3,100 won (hereinafter “Nonindicted Co. 1”) at a 3,150 won higher than the expected closing price through Nonindicted Co. 9’s account at the 2010 location, and issued an order to purchase 3,150 won (hereinafter “Attached 5”) from August 18, 2005 to September 30 of the same year, and caused a 30 times more than 509,114 share purchase from the 2009 to September 30 of the same year, thereby causing a misunderstanding of the market price or causing a misunderstanding of the market price of Nonindicted Co. 1 Company 1 to become aware of any change in the market price.

2. Determination

A. Summary of the defendant's defense

The Defendant, only until August 17, 2005, was serving in ○○ Investment Finance and did not work thereafter, and denied the charge of violating each of the Securities and Exchange Act after August 18, 2005.

B. Determination

1) The Defendant’s involvement in stock market price manipulation in Nonindicted Co. 1

According to each of the statements made by the Defendant, Nonindicted 3, and 10, the prosecutorial interrogation protocol and each of the answers to the Defendant, etc., the Defendant entered ○○ Investment Finance with Nonindicted 3, etc. on or around April 2005, and the Defendant was working as the head of the share management team at the order of Nonindicted 2 and Nonindicted 3, etc., who worked as the head of the financial strategy headquarters from the ○○ Investment Finance, while working as the head of the share management team, and the Defendant was working as the head of the financial strategy headquarters on or around June 2005.

2) Defendant’s history of the retirement of ○○ Investment Finance

However, according to each statement of Nonindicted 2 (First), Nonindicted 3, 10, and 11 on the prosecutor’s examination report, each statement of question and answers to Nonindicted 2, and Nonindicted 3 on the defendant’s submission of the defendant’s national pension subscription certificate, and each statement of the confirmation of the eligibility for health insurance benefits, the Defendant and Nonindicted 3 traded Nonindicted 1 Company’s shares in order for them to make their personal profit profits in the process of market price manipulation of the shares of Nonindicted 1 Stock Company, they were discovered to have traded Nonindicted 2’s shares. Accordingly, it is recognized that the Defendant dismissed Nonindicted 2 from office for the first time on August 2005, while dismissing Nonindicted 3.

3) Circumstances after the Defendant’s retirement from ○○ Investment Finance Capital

On the other hand, according to the prosecutorial interrogation protocol and the written statement of the answer against Nonindicted 2 (1 and 3), Nonindicted 10, 11, and 12 regarding Nonindicted 3, Nonindicted 12, following the withdrawal of Nonindicted 3, Nonindicted 12 came to have been in charge of Nonindicted 3’s role, and Nonindicted 2 instructed Nonindicted 12, 11, 10, and 13, who are other employees remaining after the withdrawal of the Defendant and Nonindicted 3, and continued to engage in market price manipulation of the shares of Nonindicted 1.

C. Sub-decision

In light of the aforementioned circumstances, in other words, the Defendant merely conducted market price manipulation of the shares of Nonindicted Co. 1 under the direction of Nonindicted Co. 3 and Nonindicted Co. 2, and the Defendant’s retirement background and the following circumstances, it is insufficient to recognize that the Defendant participated in the charges of violation of the Securities and Exchange Act since August 18, 2005, considering the following as a whole: (a) each prosecutor’s protocol on interrogation of the Defendant, Nonindicted Co. 2 (First), Nonindicted 3, 13, 10, and 4; and (b) the prosecutor’s protocol on interrogation of Nonindicted Co. 14; and (c) the list of evidence submitted by the prosecutor; (d) 2 (the person suspected of violation of the Securities and Exchange Act; (e) 3 [the results and process of unfair trading of the shares of Nonindicted Co. 1 Co. 3); and (e) 31 (the summary order) and 32 through 34 (each judgment).

3. Conclusion

Thus, since each of the facts charged falls under the case where there is no proof of criminal facts, the defendant is acquitted under the latter part of Article 325 of the Criminal Procedure Act.

It is so decided as per Disposition for the above reasons.

[Attachment 1 and 2]

Judge Dok-be