Defendant shall be punished by imprisonment with prison labor of one year and six months, and fine of twenty thousand won.

The defendant does not pay the above fine.

Punishment of the crime

[criminal power] On April 26, 2017, the Defendant was sentenced to a suspended sentence of three years on May 5, 2017 by the Seoul High Court for a violation of the Financial Investment Services and Capital Markets Act at the Seoul High Court on April 26, 2017, and the judgment became final and conclusive on May 5, 2017. On February 2, 2018, the Seoul Southern District Court sentenced two years of a suspended sentence of six months of imprisonment for the crime of forging securities, etc.

【Criminal Facts】

The Defendant is a person who actually operated B Co., Ltd. (hereinafter “B”) from September 2010.

B was designated as a management issue on March 16, 201, on the grounds that the management issue was two for the following reasons: “The capital impaired rate of at least 50%” and “the sales amount of less than three billion won” around March 16, 2011; on May 17, 2011, the management issue was added on the ground that “30 consecutive days during which the market price is below four billion won.”

Since B returned to less than 50% of capital erosion through reduction of 80% around June 20, 201, the designation of management issues related to the capital erosion was cancelled on August 27, 2011, but the designation of management issues due to the lack of total market value is still maintained, and if such status is maintained, it is inevitable to delisting around October 201, which becomes 90 days from the date of designation of the management issues.

Around August 201, the Defendant planned to increase B’s share price through manipulation of market prices and to make B exempt from delisting by lowering B’s total market value by offering capital increase based on B’s price manipulation.

Accordingly, the Defendant conspired with the above C and D for the purpose of inducing the purchase and sale of B’s shares. From August 30, 201 to October 21, 201, the Defendant used 12 borrowed accounts, such as the E’s bank account in the name of Songpa-gu Seoul Metropolitan Government, at the coffee shop, etc., from August 30, 201 to October 21, 201, and used 135 times (1,446,618 shares), 187 (1,232,052 shares), 6 times (7,306 shares), 59 times (493,932 shares) in the paper order.