Defendant

A shall be punished by a fine for negligence of KRW 8,000,000, and by a fine of KRW 5,000,000.

The above fine is imposed against the Defendants.

Punishment of the crime

[2013 Highest 5549]

1. On April 18, 2013, Defendant A was sentenced to six years of imprisonment with prison labor for a violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Embezzlement) at Seoul High Court on April 18, 2013, and the said judgment became final and conclusive on September 12, 2013, and was the real owner of (ju) F who acquired the shares and the management right from E (ju). G is the bond business operator who borrowed funds to enable Defendant A to take over the (ju)F, and Defendant B is the person who becomes the largest shareholder and the representative director after Defendant A lost the shares and management right of (ju)F.

2. Defendant A

(a) A person who has come to hold stocks, etc. of a stock-listed corporation subject to reporting on holding of stocks in bulk, shall report the status of holding, purpose of holding, details of major contracts on such stocks, etc., and other matters prescribed by Presidential Decree to the Financial Services Commission and the Exchange within five days from the date on which such change is made in accordance with the methods prescribed by Presidential Decree, and where the total number of stocks, etc. held is changed by at least 1/100 of the total number

The Defendant borrowed approximately KRW 7.4 billion from G from June 2009 to August 8, 2009, acquired management rights and shares of KRW 3,968,254 from H of the representative director E (State). At the same time, the Defendant offered shares to G as security, sold shares of KRW 2,920,980, and sold shares of KRW 987,90 to G directly, and repaid part of the corporate bonds borrowed from G.

G satisfied the conditions of the opposite trade from August 26, 2009, which acquired collateral shares, but at the Defendant’s request, sold the entire amount between September 16, 2009 to October 12, 2009 and October 25, 2010.

As above, the Defendant acquired 3,968,254 shares of the above company until August 31, 2009, and thus, the Defendant was obligated to report on possession of shares by September 2, 2009.