All appeals filed by the defendant and prosecutor are dismissed.

1. Summary of grounds for appeal;

A. Defendant 1) Although there was no fact of deceiving the victim by deceiving the victim with the intention of defraudation, such as misunderstanding of facts, the lower court convicted this part of the charges. In so doing, the lower court erred by misunderstanding of facts and misunderstanding of legal principles. 2) The lower court’s sentencing is too unreasonable.

B. 1) Comprehensively taking account of the evidence submitted by the prosecutor of mistake of facts, the Defendant Co., Ltd. (hereinafter “C”) who is a KOSDAQ-listed corporation from F.

corporation B as incorporated in B (hereinafter referred to as the “former B”)

Although it can sufficiently recognize the fact that a person acquired 400,000 common shares, the court below acquitted this part of the facts charged, which is erroneous in misunderstanding of facts. 2) The judgment of the court below is too unreasonable in sentencing.

2. Determination

A. On June 10, 2009, the summary of this part of the facts charged is as follows: (a) around June 10, 2009, the Defendant: (b) KRW 400,000 of the company’s ordinary share (in an emergency, KRW 500,00; hereinafter the same shall apply) to F in order to raise funds to redeem the outstanding shares in the form of the old company

(B) provide as security (such as security by means of delivery) and borrow 2 billion won without setting the due date from F to F for the establishment of security by means of delivery.

After that, on September 11, 2009, the Defendant made a false statement to the effect that “B shall request a listing preliminary examination to F, and all the shares held by the same largest shareholder as B, in accordance with the KOSDAQ-related provisions, should be deposited into the Korea Securities Depository in order to protectable deposits, and if the instant shares offered as security are returned by November 30, 2009, the Defendant would refund the borrowed amount of KRW 2 billion until November 30, 2009.”

However, in fact, the Defendant had a debt amounting to H Bank and Savings Bank, approximately KRW 7.5 billion, and the shares owned by the Defendant should be protected by KOSDAQ.