A defendant shall be punished by imprisonment for one year.

However, the execution of the above punishment shall be suspended for two years from the date this judgment becomes final and conclusive.

Punishment of the crime

On February 3, 2012, the Defendant was sentenced to a suspended sentence of three years on May 24, 2012 by the Seoul High Court for the violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Embezzlement).

No executive officer or employee of a listed corporation shall use any material nonpublic information acquired in the course of performing his/her duties for the trading of specific securities or any other transaction or allow any other person to use it.

Nevertheless, the Defendant was working as the representative director of C Co., Ltd. (hereinafter “C”) from February 28, 2005 to December 19, 2009, and was willing to avoid losses by selling and selling specific securities using C’s undisclosed information.

The defendant was well aware of the financial situation of C as a certified public accountant, and at the time of the half-yearly report in 2009 with respect to C at the time of July 15, 2009, he was well aware of the information that as of the end of June 2009, D division, etc., a person in charge of the accounting of the company, exceeds 50% of the capital erosion rate of C as of the end of 2009.

At the time of the end of December 2008, C had not been 40.1% of the capital erosion rate and had not good financial standing, and even around 2009, a large-scale net loss occurred in the year. Moreover, if capital erosion rate is higher than 50% if capital erosion rate is higher than 50% because capital erosion rate is likely to become worse because capital erosion rate, which was being promoted at the time, was not achieved until June 2009, it constitutes a designated issue of management and it constitutes delisting if the cause is not resolved within 6 months, and the information that the capital erosion rate of C exceeds 50% is an important information that may have a significant impact on the investment judgment of investors. Accordingly, the Defendant was dead to avoid losses by selling the shares held by the above material nonpublic information.

Accordingly, Defendant from July 22, 2009 to February 24, 2009, when the above information was disclosed to the general public.