Defendant

A Imprisonment of three years and fine of 400,000,000 won, and Defendant B shall be punished by imprisonment of two years and six months, respectively.

Defendant

A.

Punishment of the crime

[Status, etc. of Defendants] K Co., Ltd. (hereinafter referred to as “K”) is established on May 15, 200 for the purpose of manufacturing and selling electronic components under the name of L Co., Ltd., and listed on January 16, 2001. Around May 23, 2007, changing the trade name to M Co., Ltd. (hereinafter referred to as “M”) for the purpose of manufacturing and selling pharmaceutical products, adding it to the purpose of manufacturing pharmaceutical products on March 31, 201, and changing the purpose of manufacturing and selling pharmaceutical products to M. (hereinafter referred to as “M”).

4. On October 20, 201, the company was merged with K to change its trade name while absorbing K to K, and the company was merged with N (hereinafter “N”) on October 20, 201, and the Defendant Company A was a corporation listed with the share certificates, taking overall control over the overall operation of the said company as the actual operator of N, the representative director of M, K, and K, and the company South, the representative director of the said company, and the Defendant B was a person with overall control over the financial management of M, K, and N from May of the same year after being employed as N around April 21, 2007.

[Conspiracy to commit a crime] Defendant A provided 10,000 Won

M's stock price drop to KRW 1,00, there is difficulty in lending and attracting new investors if the stock price drop continues, and M and absorption plan has been planned.

The shareholders of N and K announced the results of converting the number of M shares into blacks through processing sales on the grounds of concerns about the situation in which the number of shares should be issued at the time of negotiations with the shareholders of N and K, raising the value of shares by supporting the share price, and raising them with the success of bank loans and the invitation of new investors.

Defendant

A around December 2008, at the M office located in the Gangnam-gu Seoul P building in Gangnam-gu Seoul P building, "this year sales are too poor."

The share price of more than 10,000 won fell to 1,000 won.

The share price shall be raised by converting the results of processing into black products.

In the future, the purport that the bank loans, new investments, etc. can be received, and the merger with K and N may be avoided, was approved by the Defendant B.

[Preparation, Public Disclosure, etc. of False Financial Statements]