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The appeal is dismissed.
Reasons
The grounds of appeal are examined.
1. Case summary and key issue
A. The summary of the facts charged alleged in the grounds of appeal is as follows.
(1) On May 29, 201, the Defendant negotiated an agreement with G Co., Ltd. (hereinafter “G”) on the underwriting of new shares to acquire new shares and purchased G shares 47,980 shares from May 30, 201 to June 2, 2011, the Defendant, the former N Co., Ltd. (hereinafter “N”), was involved in creating information that “the Defendant, as the president, shall acquire KRW 10 billion bonds subject to the new shares to acquire G shares.”
(2) On July 7, 2011, the Defendant negotiated an underwriting agreement with G to subscribe to new shares, and purchased shares 1,148,810 shares of G on July 21, 201 and July 21, 201, prior to disclosure of the information, that “the Defendant, etc. acquires KRW 20 billion bonds subject to the right to subscribe to new shares.”
(3) Accordingly, the Defendant, as a person negotiating the conclusion of a contract with G, used nonpublic information related to G business affairs, etc. he/she became aware of in the course of negotiating the contract, to sell and sell G stocks.
B. The lower court, as follows, violated Article 174(1)4 of the former Financial Investment Services and Capital Markets Act (amended by Act No. 11845, May 28, 2013; hereinafter “former Capital Market Act”) by the Defendant.
In light of the above facts charged, the above charges were convicted.
(1) The “information that the Defendant, a former N Chairperson, receives large volume of bonds with the authority to receive new shares issued by G” (hereinafter “information of this case”) constitutes “upublic information” under Article 174(1)4 of the former Capital Market Act, and constitutes “information that the Defendant became aware of” information related to G’s business affairs.
(2) The Defendant purchased G shares using the instant information.
(c)
The main issue of the instant case is whether the Defendant violated Article 174(1)4 of the former Capital Market Act.