1. Defendant B is not guilty. 2. Of the facts charged in this case against Defendant A, Defendant B 5 through 7.

I. Around July 1985, Defendant A, along with Defendant B, established H (hereinafter “H”) for the purpose of selling medical devices, etc., and (i) served as the largest shareholder from July 1, 1985 to October 11, 2001 as the representative director, and (ii) served as the president of the board of directors from January 2002.

Defendant

B worked as the representative director of H from June 18, 1997 to December 7, 2006, while Defendant A worked as the representative director of H, together with Defendant A during the service period of Defendant A. After Defendant A’s retirement, Defendant A was solely or jointly responsible for the management of H, and overall affairs including H’s fund management.

H From around June 18, 1996, around 200 million won invested and changed to J on November 17, 1998; changed to K on December 1, 1999; hereinafter referred to as “K”), which was established for the purpose of leasing a medical device, etc., due to liquidity crisis due to the total locking of capital, 63.2 billion won, the holding of non-performing loans at KRW 3.4 billion, and the loss of KRW 14.5 billion, H had to participate in the second capital increase of KRW 3.5 billion on May 30, 1998 and to take over the total amount of KRW 2.9 billion on September 13, 1998, the total amount of KRW 9 billion and KRW 2.9 billion on September 30, 1998, and the total amount of shares issued at KRW 9.9 billion on September 29, 2000 and KRW 9.9 billion on September 13, 1998.