The appeal is dismissed.

The grounds of appeal are examined.

1. Interpretation of the penal provisions ought to be strict, and an excessively expanded interpretation or analogical interpretation of the meaning of the penal provisions in the direction unfavorable to the defendant is not permitted as it violates the principle of statutoryism (see, e.g., Supreme Court Decision 2011Do7725, Aug. 25, 2011). Article 18(1) of the former Foreign Exchange Transactions Act (amended by Act No. 14047, Mar. 2, 2016; hereinafter “former Foreign Exchange Transactions Act”) provides that “a person who intends to engage in capital transactions shall report to the Minister of Strategy and Finance, as prescribed by Presidential Decree.”

Provided, That a minor or standardized capital transaction prescribed by Presidential Decree may be reported or not reported ex post facto.

Article 29(1)6 provides that a person who violates the duty to report under Article 18 shall be punished in excess of the amount prescribed by Presidential Decree not less than 50 million won.

Article 3 (1) 18 of the Foreign Exchange Transactions Act, which is a definition provision, provides for any transaction or act prescribed by Presidential Decree, which a resident intends to acquire securities issued by a corporation established pursuant to foreign Acts and subordinate statutes (including a corporation in the process of incorporation) or to establish a continuous economic relationship with such corporation by lending money to such corporation (a) and any transaction or act prescribed by Presidential Decree, among the acts prescribed by Presidential Decree (b) that establish and operate a business office in a foreign country or pay funds to conduct an overseas business activity, shall be construed as "overseas direct investment", and subparagraph 19 of the same paragraph provides for any transaction or payment of securities, acquisition of securities or rights related thereto, and other transactions or act (f) prescribed by Presidential Decree, which is similar to the provisions of items (a) through (e) as "capital transaction".

In addition, the former Enforcement Decree of the Foreign Exchange Transactions Act (2012.