(a)whether Article 14 and Article 15 of the Securities and Exchange Act, which provides for liability for damages in cases where a listed company entered false statements in the settlement of accounts or a prospectus, and the amount of compensation for such false statements or prospectus, applies;

(b)whether it can be readily concluded that, if a purchaser of a stock market purchases shares, the net income for the purchase of shares has occurred, only the Company’s report of settlement of accounts may be trusted and purchased;

A. A listed corporation's disclosure system on the settlement of accounts is a system that provides for cooperation with the Korea Stock Exchange for the settlement of accounts at the end of December of 1986 without any express provision in the Securities and Exchange Act, and it is different from the securities registration statement or prospectus under Article 14 of the Securities and Exchange Act. Thus, even if the above settlement of accounts was entered falsely, Article 14 and Article 15 of the same Act, which provide for the liability for damages and the amount of damages, are not equally applied.

(b)When the purchaser purchases or sells shares in the stock market, it shall be determined by taking into account such factors as the company's property status, business prospects, the government's economic policy, the prospects of the economy and industry, economic prospects, prices and other economic factors as well as the social conditions such as labor and management decentralization, private teaching institutes problems, and other domestic and foreign political conditions, diplomatic issues, and international issues, and therefore it is difficult to conclude that the purchaser has purchased shares with belief only for the settlement of accounts of the company that the net income of the purchaser occurred;

Article 750 of the Civil Code, Article 14 of the Securities and Exchange Act, Article 15 of the same Act

South Korean Government

Promotion Company

1. The plaintiff's claim is dismissed.

2. Litigation costs shall be borne by the plaintiff.

The defendant shall be sentenced to the judgment of the court below and a provisional execution order to pay to the plaintiff 30,576,000 won with an amount equivalent to 25 percent per annum from the day following the judgment of the court below to the day of full payment.

The defendant company posted a serial table on the settlement of accounts to the effect that the net income of the defendant company was generated at KRW 5,512,00,000 as a result of the settlement of accounts in the securities market of March 15, 1989, and after which the external audit was conducted in order to determine the settlement of accounts in the year 1988, the fact that the settlement of accounts in the year 1988 was confirmed to have been changed to the net loss in the securities market of March 29, 1989 is not a dispute between the parties, and the fact that the settlement of accounts in the year 1988 was confirmed to have been changed to the net loss in the market of March 29, 1989, the amount of losses is 24,593,343,511, and the fact that the plaintiff purchased the shares of the defendant company was 00,000 won per share in the amount of 10,000 won per share, 30,000 won per share in the same amount per share.

The plaintiff first, as the defendant company had poor business performance in the year 1988, and then published a false statement of accounts as if the net income was generated during the period of 5,512,00,000 won as above, the plaintiff believed it and purchased the shares of the defendant company at a price lower than the actual value as above. Since the settlement of accounts in the year 1988 became final and conclusive as the price of the shares of the defendant company's company was affected by its net loss, the defendant company's share price of the defendant company was sold to 9,00 won per share on April 1, 1989 without the plaintiff. Accordingly, the plaintiff asserted that the difference in the market price after deducting the above sales price was 30,576,00 won per share (49,434,00-(970 x 9,000-4,200) x 200 x 420,4200).

Therefore, as to whether the above purchase act of the plaintiff was due to the defendant's fraudulent settlement of accounts, it is difficult to find that there was a proximate causal relation between the above 10th anniversary of the above decline in the 10th day after the above 4th day and the above 1st day after the 0th day after the 1st day after the 0th day after the 1st day after the 0th day after the 1st day after the 0th day after the 1st day after the 1st day after the 0th day after the 1st day after the 1st day after the 3th day after the 1st day after the 1st day after the 3th day after the 1st day after the 1st day after the 4th day after the 1st day after the 5th day after the 1st day after the 1st day after the 3th day after the 1st day after the 3th day after the 1st day after the 4th day after the 1st day after the 4th day after the 1st day after the 1st day after the 1st day after the 2nd day after the 3th day after the 3th day after its settlement.

Then, the plaintiff argues that Article 14 and Article 15 of the Securities and Exchange Act, which provide for liability for damages in the case of false entry of the above securities registration statement or prospectus and the amount of damages in the case of false entry of the above securities registration statement or prospectus, should be equally applied to the above securities registration statement or prospectus. However, in full view of the statements in subparagraph 1-2 (the public disclosure business manual and contents), subparagraph 10 (Abolition of the above disclosure business) and subparagraph 10 (Abolition of the above disclosure system), which are the basis for the public disclosure of the settlement of accounts, all of the statements in subparagraph 1-2 (the public disclosure business manual and contents), and subparagraph 10 (Abolition of the above disclosure system), which are the basis for the public disclosure of the settlement of accounts, are not applied to the Korea Stock Exchange for the purpose of resolving the rumor of the settlement of accounts, without any express provision of the Securities and Exchange Act, since the corporation from the last day of December 1986 to the corporation of the settlement of accounts, which submits them within the fixed period of 4 weeks before the above general meeting of shareholders.

Therefore, the plaintiff's claim of this case is dismissed without any need for further review, and it is so decided as per Disposition by applying Article 89 of the Civil Procedure Act to the burden of litigation costs.

Judges Cho Il-dong (Presiding Judge) (Presiding Justice)