1. The defendant's appeal is dismissed.

2. The costs of appeal shall be borne by the Defendant.

Purport of claim and appeal

1..

1. Details of the disposition;

A. B Accounting Corporation is an auditor who has conducted an external audit (hereinafter “instant audit”) on financial statements at the 40th period (from July 1, 2009 to June 30, 2010) of C Mutual Savings Bank (hereinafter “instant company”). The Plaintiff, who belongs to B Accounting Corporation, is a director in charge of the said external audit as a partner accountant of B Accounting Corporation.

B Accounting Firm prepared, as a result of the instant audit, an audit report stating that the financial statements of the instant company are adequate.

B. The Securities and Futures Commission determined that the Plaintiff failed to reflect the underpaid amount of KRW 50,922,00,000 in the audit report, due to the Plaintiff’s negligence in audit procedures on loan claims, such as violating asset soundness classification standards, in the audit process of the instant audit and inspection process, as follows.

The reason for disposition was that the Plaintiff, as a result of an interim audit, extracted the borrower's sample of 50 cases at the time of interim audit (from June 10, 2010 to June 11, 2010) and confirmed whether the business was suspended or closed. At the time of the last audit (from July 21, 2010 to June 23, 201) from the company of this case, received a list of closed-end business operators as of the end of June 2010, and examined the appropriateness of the asset soundness classification of the company of this case.

Of the total credit extended to the customer who is in the discontinuance of business, the relevant credit amount should be classified as not more than "fixed-term". However, with respect to eight individual entrepreneurs such as D, since the borrower has to continue to repay loans, unlike a juristic person, even if the borrower has discontinued his/her business, the borrower should continue to do so. Therefore, applying the overdue standard on personal loans that are not a business operator, it is erroneous for the borrower to regard the whole loan claims in arrears for not less than three months (4 cases), three months (2 cases), and not less than six months (2 cases).

This is related to the above loans.