Defendant

A Imprisonment of four years and six months and fine of 4.5 billion won, and Defendant B's imprisonment of two years and six months and fine of 4.5 billion won, respectively.

Punishment of the crime

H Co., Ltd. (former I, Gu J, hereinafter “H”) is a broadcasting and communications equipment company established in 1996 and registered in the KOSDAQ in 199, and recorded at least 50% of the capital erosion rate for at least two half-years and abolished on September 8, 2016.

K Co., Ltd. (hereinafter referred to as “K”) is a company that, without any particular sales performance, acts as a broker of the stock owner’s financial support (tentatively named “pululty”) for a foreign business related to a listed company, and is a company that, on October 2015, provided the stock owner’s financial support by entering into a partnership with H and China distribution business, even though there is no exclusive right to supply Korean goods to global large enterprises located in China in the mid-2015.

M is a person who was the subject of H’s actual inspection from July 24, 2015 to December 22, 2015; Defendant A was the actual owner of H from July 24, 2015 to February 2016; Defendant B was the representative director of H from July 24, 2015 to December 22, 2015.

N (O) and P are the actual owners of K, who have overall control over the operation of the company from around March 2015, and Defendant Q (P) is the representative director of K and the former representative director of H from around December 30, 2015 to September 9, 2016, who was the former representative director of H from around March 9, 2015 and performed the duties of external representatives of K and H from around September 2016.

1. On May 6, 2015, the Defendants, along with M and B, acquired a KOSDAQ listed company by using an external loan, other than its own funds, from May 2 to June 2015, and then artificially raising the stock price of the listed company acquired by using other unlisted funeral acquisition or new business expansion, etc. as materials to support the stock price, and selling the acquired listed stocks at a high price, thereby acquiring economic benefits. Defendant A is the overall practice of the acquisition of non-capital, M is the raising of the acquisition fund, Defendant B is the title holder and the representative director after the acquisition, and Gangnam-gu Seoul Metropolitan Government is the Gangnam-gu.