The appeal is dismissed.

The grounds of appeal are examined.

1. Article 174(3)6 of the former Financial Investment Services and Capital Markets Act (amended by Act No. 11845, May 28, 2013; hereinafter “former Capital Market Act”) provides that “a person who becomes aware of any material nonpublic information regarding mass acquisition or disposition of stocks or any other person falling under any of subparagraphs 1 through 5” shall not use such material nonpublic information for the sale and purchase of specific securities or any other transaction related to the stocks, etc. or for any other transaction.

The legislative purport of the above provision is to prohibit internal investors related to the acquisition and disposal of stocks, etc. from doing transactions using undisclosed information on the implementation or suspension of large volume acquisition and disposal of stocks, etc., and thus, it is not legally possible for the insider to avoid such prohibition and prevent them from doing transactions using undisclosed information. Thus, the legislative purpose of the above provision is to prevent the internal investors from trading or other transactions of specific securities, etc. using undisclosed information after becoming aware of undisclosed information from the internal investors.

Article 174(1)6 and Article 174(2)6 of the former Capital Market Act regards an internal entity referred to in any of subparagraphs 1 through 5 of each paragraph as the recipient of the information, and prohibits the recipient of the information from using the information in relation to the information, by considering the internal entity referred to in any of subparagraphs 1 through 5 of each subparagraph, including the purchaser of nonpublic information related to the business affairs, etc. of the listed corporation.

Therefore, the legislative intent of Article 174 (1) 6 and 2 (2) 6 of the former Capital Market Act is not different from that of Article 174 (3) 6 of the former Capital Market Act.

In addition, in light of the structure, form, language, etc. of Article 174 of the former Capital Market Act, Article 174 of the said Act, "person who received nonpublic information or nonpublic information" and Article 174 (1) 6 of the said Act, and Article 174 (3) of the said Act.