The judgment of the court below is reversed.

Defendant shall be punished by a fine of KRW 10,000,000.

The above fine shall not be paid by the defendant.

1. Summary of grounds for appeal;

A. On June 26, 2007, the Defendant: (a) around June 26, 2007, the Defendant provided 588,236 shares of 2,050,940 shares B owned by the Defendant as security to K and borrowed 3 billion won; (b) at the time, the Defendant was unaware of the fact that he was liable to report, and did not report such fact to the Financial Services Commission or the Exchange.

Since then, the defendant has been given additional loans in accordance with the financial situation, and the period of loans has been extended after receiving a part of the stocks offered as a security with additional stocks offered as security or with partial repayment.

As above, by failing to report the fact that the Defendant offered shares as security around June 26, 2007, it should be deemed that the crime of violation of the Financial Investment Services and Capital Markets Act due to the Defendant’s violation of the duty to report under Article 445 subparag. 20 of the Financial Investment Services and Capital Markets Act (hereinafter “Capital Markets Act”) is established.

In such a case, even if the Defendant continued to omit matters related to the initial provision of stock security and the fluctuation in the number of collateral offering stocks in the process of reporting the status of stocks held in bulk each time due to the occurrence of other circumstances after the occurrence of the situation, it cannot be deemed that the crime of violation of Article 444 subparag. 18 of the Capital Markets Act, separate from the crime of violation of the said duty to report, continues to be established.

Therefore, the judgment of the court below which convicted him by applying Article 444 subparagraph 18 of the Capital Markets Act as to the facts charged in the No. 1 through No. 4, 6, and 7 of the annexed crime list.

B. The sentence imposed by the court below on the grounds of unfair sentencing (the fine of KRW 20,000,000) is too unreasonable.

2. The lower court also asserted the same purport as the grounds for appeal.