Defendants shall be punished by imprisonment for two years.

However, from the date of the final judgment of this case, each of the above three years against the Defendants.

Punishment of the crime

[criminal power] On February 25, 2015, Defendant A was sentenced to three years of suspension of execution for a violation of the Financial Investment Services and Capital Markets Act at the Seoul Southern District Court, and the said judgment became final and conclusive on August 12, 2015.

【Criminal Facts】

Defendant

A is a person who served as the executive director of K (hereinafter referred to as K) and Defendant B is a person who served as the vice president of K’s financial director and L(hereinafter referred to as “L”).

M is a person who, around January 2013, had overall control over the management of the company by taking over the capital of I Co., Ltd. (a person who was listed on the KOSDAQ as a closed-end manufacturer, but was delisted on July 24, 2013; hereinafter “I”) and holding the position of Vice-Chairperson after acquiring the capital.

M decided on January 2013, 2013, in order to avoid the opposite trading of the shares offered as security to the bond company in the process of raising acquisition funds, M intended to make a price manipulation, and embezzled I's funds in order to secure funds necessary for price manipulation.

M entered into an investment contract between I and K on January 2013, 2013, M paid the amount of investment and made a plan for the embezzlement of company funds in the way of returning part of it, and then proposed it to the Defendants.

After receiving the above proposal, the Defendants delivered the purport to N, the representative director of K, but they were rejected from N, and the Defendants concluded an investment contract with K by temporarily lending L in the name of K, instead of K, and decided to cooperate in the embezzlement of I funds.

On February 5, 2013, Defendant B entered into an investment contract with the head of the I Finance Division and the I to the effect that “I shall invest KRW 2.8 billion in L under the pretext of production, etc. of drama.”

M has remitted the amount of KRW 300 million from the I account to the L account on February 21, 2013 in accordance with the above investment contract.