Defendant shall be punished by imprisonment with prison labor of one year and six months, and fine of ten thousand won.

The defendant does not pay the above fine.

Criminal facts

From October 1, 2009, the Defendant served as outside directors in Company E, which is the largest shareholder of Company D (hereinafter “D”) from around October 1, 2009, and served as directors from around May 19, 201, and has been working as D’s representative director from around August 31, 201.

1. D’s stock price manipulationD was designated as a management issue on March 16, 201, on the ground that “the capital impaired rate of at least 50%” and “the sales amount of less than three billion won,” etc. Around May 17, 201, the issues were additionally designated as management issues on the grounds that “30 consecutive days of the market price of less than four billion won” were “the total market price of less than four billion won.”

After that, D's capital erosion rate was recovered to less than 50% through reduction of 80% around June 20, 2011, and around August 27, 2011, the designation of management issues related to the capital erosion was cancelled, but the designation of management issues due to the lack of the total market value was still maintained, and if such status is maintained, it would have to be delisting around October 201, 201, which would be 90 days from the date of designation of the management issues.

On August 201, the Defendant planned that D’s actual operator F, G engaged in stock investment-related work, and D’s share price increase through price manipulation, and that D’s total market price increase through the implementation of D’s capital increase with capital increase based on this, so that D’s total market value may be exempted from delisting.

Accordingly, the Defendant conspired with the above F and G for the purpose of inducing to trade D shares. From August 30, 201 to October 21, 201, through 12 accounts, such as one bank accounts in the name of H, at coffee stores, etc. located in Songpa-gu Seoul Metropolitan Government, Songpa-gu, Seoul from August 30, 201 to October 21, 201, submitted 135 shares purchase orders (1,446,618 shares), 187 shares purchase orders (1,232,052 shares), 6 shares in market price control (73,306 shares), 59 shares (493,932 shares), so as to mislead or cause a change in the market price by making use of 12 shares purchase orders (1,446,618 shares), 187 shares purchase orders (1,232,05 shares), and 387 shares purchase and sale orders (3,932 shares).