Defendant

A Imprisonment with prison labor for three years, and for two years and six months, respectively.

However, as to Defendant B, this shall not apply.

Punishment of the crime

Ⅰ. Defendant A’s position as the representative director of the victim FF Co., Ltd. (former G Co., Ltd.; hereinafter “F”) who was a KOSDAQ-listed corporation and was denied the audit opinion on July 10, 2013, has overall control over the management and execution of funds, finance and investment, etc. from December 14, 2010.

Defendant

B has been in charge of financing management and enforcement, finance and investment, etc. as a director in charge of finance of F from January 201 to January 201.

H, together with Defendant A, has been holding office as the respective representative director of F from December 14, 2010, and has overall control over the management and execution of company funds, finance and investment.

I, from December 14, 2010 to February 18, 2011, as a registration director of F, and as a representative director of J (former KK Co., Ltd., Ltd., hereinafter “J”) of F, an affiliated company, has been in charge of the distribution, sale, etc. of rare soil.

Ⅱ In the event that the F’s business and sales conditions were low and the loss was anticipated to be delisting each year since 2008, Defendants related to the public offering conspired with H, I, etc. as if the operating profit was generated by means of unfacing sales through affiliated companies and processing companies, etc., as well as the public offering to arbitrarily use the company’s funds in the process, and share the role to implement it according to their respective duties.

Ⅲ. Joint principal offenders by the Defendants

1. On September 27, 2012, the Defendants, H, and I asserted that, through the resolution of the board of directors on September 27, 2012, in order to improve F’s management balance of benefits, the Defendants, H, and I returned KRW 367 million in total to F, from January to August, 2012, the amount of benefits that was paid from January 201 to August, 2012 was returned to F. Ultimately, on March 2013, the said KRW 367 million as at the time of the audit of the fiscal year 2012 (29) was appropriated to F’s capital increase interest, but there was no idea to return the benefits that was actually received.

Defendants are F around July 2, 2013.