A defendant shall be punished by imprisonment for not less than one year and six months.

Of the facts charged of this case, around September 11, 2009.

Punishment of the crime

[criminal record] On February 4, 2016, the Defendant was sentenced to 11 years of imprisonment and a fine of 50 billion won for violating the Act on the Aggravated Punishment, etc. of Specific Crimes (such as issuing a false tax invoice) at the Seoul High Court and the Act on External Audit of Stock Companies. The judgment became final and conclusive on June 23, 2016.

[Status and Basic Facts of the Defendant] B Co., Ltd. (hereinafter “former B”) was established for the purpose of the production of semiconductor wafer (Mafer) around February 25, 2000, and was merged in the form into C Co., Ltd. (hereinafter “C”) that is a corporation listed on KOSDAQ around September 23, 2009 and then the mission of the merged corporation was changed to B Co., Ltd. (hereinafter “new”) on October 6, 2009.

The Defendant was in office as the representative director of the former B from February 25, 2000 to September 23, 2009, and was in office as the representative director of the new B (includingC) from September 5, 2008 to May 26, 2010, and was the largest shareholder of the former B and B.

D An accounting firm, while conducting an audit on New B around February 2010, rejected the audit opinion on the grounds of window dressing accounting, etc., and accordingly, the transaction of new B stock certificates was suspended since March 24, 2010.

Since September 3, 2010, New B was abolished on the KOSDAQ market, and was declared bankrupt by the Seoul Central District Court on September 4, 2012.

The former part of this section was a situation in which it is impossible to maintain existing loans or raise new funds unless it processes the financial statements as if sales and profits increase as a result of the continued business difficulties due to the increase of financial costs following excessive loans from financial institutions from around 2007 to the financial institutions, business depression, etc.

The Defendant, on March 2009, anticipated that it would be difficult to list on the KOSDAQ due to the occurrence of the current net loss in the accounting year of the former B around 2008, would manipulate the financial statements of the Company as if the current net profit was generated in order to meet the requirements for listing on KOSDAQ.