Defendant

A shall be punished by imprisonment with prison labor for eight months, by a fine of twenty thousand won,00,000 won.

Defendant

Co., Ltd.

Punishment of the crime

1. The Defendant, as the representative director of C Co., Ltd. (Co., Ltd. D, May 12, 2017; hereinafter “C”) from May 2, 2014 to July 27, 2016, is a person who manages and supervises all business affairs of the said company and makes a final decision on behalf of the said company. A

A stock-listed corporation that violates the Financial Investment Services and Capital Markets Act and the Act on External Audit of Stock Companies shall submit the business report to the Financial Services Commission and an Exchange within 90 days after the lapse of each business year, and shall not make a false statement or representation concerning a material fact among the above documents, and no business executor, etc. shall prepare and publicly announce any false financial statement or consolidated financial statement in violation of the accounting standards of the company

C On September 24, 1996, the company listed on the KOSDAQ market; the business loss of KRW 2.4 billion in the year 2012; the business loss of KRW 1 billion in the year 2013; the business loss of KRW 2.6 billion in the year 2014; and the deficit of KRW 2.6 billion in the year 2014 continued to be accumulated for three consecutive years; and when recording deficit in the year 2015, the Defendant was anticipated to be designated as a management issue, in violation of the accounting standards, the Defendant was willing to make a window dressing accounting as if there were blacks by means of falsely preparing financial statements such as account books in violation of the accounting standards

around March 30, 2016, the Defendant prepared and submitted to the Financial Services Commission and the Korea Exchange a business report for 2015 at the office of the above company located in Seoul E building F of Gangnam-gu (from January 1, 2015 to December 31, 2015) and appropriated the total amount of KRW 4,345,00,000 in excess of KRW 2,398,000 for G Co., Ltd. (the actual stock company H), and 1,947,000,000 for I for a stock company (the actual stock company), and 2,333-5,000 for sales by means of making a false appropriation of goods not manufactured in C or not shipped out in the company warehouse, etc. (the total amount of KRW 4,395,00,000 for C).