All of the appeals by prosecutors are dismissed.

1. At the time of issuance of new shares issued and convertible bonds (hereinafter “instant shares-linked bonds”) as stated in the summary of the grounds for appeal, the market price per share trading price of the victim I Co., Ltd. (hereinafter “victim”) was KRW 15,000,000, and the accounting firm’s valuation value as of April 30, 2015 is similar to this.

Since the Defendants issued the stock-linked bonds for the purpose of securing management right, the market price reflecting the objective exchange value should be at least 15,000 won per share.

In addition, the Defendants committed the instant crime with a view to securing the right to manage the victimized company as well as procedural errors that have been issued without the special resolution of the general meeting of shareholders. In light of the fact that the Defendants’ issuance of the instant bonds at a price lower than the market price constitutes breach of trust in relation to the victimized company, and the intent of breach of trust can be recognized.

Nevertheless, the court below acquitted the Defendants on the grounds that there is no evidence to acknowledge the facts charged of this case. The court below erred by misapprehending the rules of evidence and thereby adversely affecting the conclusion of the judgment.

2. Summary of the facts charged

A. As to the issuance of new shares, Defendant B, C, and the representative director of the victimized company, directorO, P, around 1:00 on March 11, 2015, in violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (i.e., the issuance of new shares) and the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (i.e., the issuance of new shares), the board of directors of the victimized company shall be held at the N Office operated by Defendant B, which is located in Gangnam-gu Seoul, Qu, and Defendant B, which is located in 2208, and the value of exercising the right to purchase new shares shall be KRW 5,00 per share, and the total amount of issuance shall be KRW 9 billion per share (the total amount of the first issuance, KRW 2 billion, the total amount of the second issuance, KRW 3.5 billion, and the total amount of the third issuance, KRW 3.5 billion).