Defendant

A shall be punished by fine for negligence of KRW 40,000,000, and by fine of KRW 20,000,000, respectively.

Defendant

A.

Punishment of the crime

Defendant

B A Co., Ltd. is a corporation established for the purpose of manufacturing and selling shipbuilding machinery parts, and the defendant A is a major shareholder who exercises de facto influence over major management affairs as the representative director of the above B Co., Ltd.

In addition, C is a person with special interest in Defendant A as a person with special interest in Defendant A, and D, a corporation established for the purpose of manufacturing metal products, etc., holds more than 30% shares in the aggregate with the Defendant and C, or exercises de facto influence over major management matters by taking office at the representative director around March 31, 2016, and thus, E, a corporation established for the purpose of manufacturing metal products, etc., holds more than 30% shares of Defendant A, and thus, is a person with special interest in Defendant A.

1. Defendant A

A. A. (1) A company loaned KRW 968,850,000 to C with economic value, such as money, etc. A company shall not extend credit, such as lending money, to a major shareholder or a person falling under his/her specially related party, or for that person. Nevertheless, around July 2013, at the office of a stock company located in Gangseo-gu Busan Metropolitan Government F, the Defendant requested that “the funds to purchase D Co., Ltd. need to be borrowed,” and lent KRW 968,850,000 to C on July 5, 2013. Accordingly, the Defendant extended credit to C with a specially related party of the Defendant. Accordingly, the listed company loaned KRW 1,80,000,000 to a major shareholder or a person falling under his/her specially related party to the company should not extend credit, such as lending money, etc. to another party or for that person.

Nevertheless, the defendant around June 2015 is the above B Co., Ltd.