1. The defendant's appeal is dismissed.

2. The costs of appeal shall be borne by the Defendant.

Purport of claim and appeal

1..

The reasons why the court should explain this case by the court of the first instance as to this case are as stated in the reasoning of the first instance judgment, except for the addition of the judgment as to the argument that the defendant emphasized in the trial by the court of the first instance under paragraph (2) below. Thus, this is cited as it is by the main sentence of

(4) Article 172(1) of the Financial Investment Services and Capital Markets Act (hereinafter “Capital Markets Act”) provides that “The purpose of Article 172(1) of the said Act is to prevent an executive officer from disposing of his/her shares for a specific period, thereby restricting the exercise of his/her property right.” In light of the aforementioned, it is reasonable to interpret that the obligation to return short-swing profits under Article 172(1) of the said Act applies only to cases where an executive officer, etc. of a stock-listed corporation purchased shares and then sold shares within six months after the purchase of the shares.”

However, the instant new shares acquired by the Defendant under the name of co-defendant B of the first instance trial on June 19, 2015 are subject to compulsory protection to the Korea Securities Depository from July 2, 2015 to July 4, 2016, and thus, are irrelevant to the shares in the name of co-defendant B of the first instance trial sold from September 10 to October 15, 2015, and thus, the Defendant cannot be deemed to bear the obligation to return short-swing profits under Article 172(1) of the Capital Markets Act.

Judgment

The following circumstances cited earlier, namely, ① the return system of short-swing profits under Article 172(1) of the Financial Investment Services and Capital Markets Act, are likely to use undisclosed inside information in a case where an insider of a stock-listed corporation sells the corporation’s stocks, etc. within a short period of not more than six months, and instead, an insider is allowed to use such undisclosed inside information.