All appeals are dismissed.

The grounds of appeal are examined (to the extent of supplement in case of supplemental statements in the grounds of appeal filed after the period for submitting the grounds of appeal).

1. As to Defendant A’s grounds of appeal

A. As to the part of the violation of the Financial Investment Services and Capital Markets Act, Article 178(1) of the former Financial Investment Services and Capital Markets Act (amended by Act No. 11845, May 28, 2013; hereinafter “Capital Market Act”) prohibits “act of using unlawful means, plans, or tricks” in relation to trading and other transactions of financial investment instruments, and “act of seeking money or other proprietary benefits by using documents, etc. with false description or indication as to material facts” (Article 178(1).

Here, “unfair means, schemes, or tricks” refers to any means, schemes, or tricks deemed unfair in light of social norms. “Important matters” refers to any matter that may have a significant impact on the property management of the pertinent corporation, or that may affect investors’ judgment on investment, which is necessary for fair trade in specific securities, etc. and for the protection of investors (see, e.g., Supreme Court Decisions 2011Do8109, Oct. 27, 2011; 2013Do933, Jan. 16, 2014). Financial statements that false or inadequate statements with respect to material facts may have an impact on investors’ judgment on investment in a specific situation, and active use in order to take them as an opportunity to obtain money or other economic benefits is included in “act of use of documents” under Article 178(1)2 of the Capital Markets Act.

Meanwhile, in the interpretation of Article 178 (1) 2 of the Capital Market Act, there is a false description or false description as to material facts for gain of money or other property gains by inducing misunderstandings to other persons.