2015dan3694 Violation of the Financial Investment Services and Capital Markets Act

A person shall be appointed.

Kim U.S. (Lawsuits) and Dong-dong (Trial)

Law Firm (with Limited Liability) and Attorney Park In-bok

November 24, 2015

Defendant shall be punished by a fine of KRW 40 million.

When the defendant fails to pay the above fine, the defendant shall be confined in the old house for the period calculated by converting 100,000 won into one day.

16,942,699 won shall be collected from the defendant.

Facts of crime

1. Status of the defendant and persons interested in the case;

The defendant is the director of the management support team of B Co., Ltd. (hereinafter referred to as C Co., Ltd.; hereinafter referred to as "B"). D is the former representative director of B B, E is the former (former), E is the former (former), F is the former (former) managing director, and G is the managing support team manager.

2. The process of mass disposal and acquisition of B stocks;

Around August 2014, H (hereinafter referred to as “H”) proposed B’s acquisition to the I Co., Ltd. (hereinafter referred to as “I”), a major shareholder of H, and prepared a proposal (MU) that H and I will transfer B’s shares to H on November 6, 2014 after entering into the negotiations for sale by H and I, and that H will transfer B’s shares to H. 32.4% of the shares of affiliated companies held by H., and H will acquire B’s shares in bulk.

3. An executive or employee of a person (including his/her affiliated companies) who intends to acquire or dispose of B stocks sold in bulk using undisclosed information, and becomes aware of undisclosed information in connection with the execution or suspension of the acquisition, disposal or disposal of such stocks, etc. in connection with his/her duties, shall not use or allow another person to use such undisclosed information in the sale or purchase of specific securities, etc. related to such stocks, etc. or any other transaction;

On November 21, 2014, the Defendant: (a) obtained the information that I et al. received from the managing director of G, who is an affiliated company, to prepare for a subsequent measure of mass disposal, as set forth in paragraph (2) of the same Article; (b) when the information is disclosed, B shares held by the Defendant prior to disclosure; and (c) made the said information available for sale by notifying D, E, and F, a former executive officer or employee of P, who had a close relationship with the Defendant, of the said information, so that the Defendant and D, E, and F would avoid or avoid losses arising from stock price decline.

On November 26, 2014, the Defendant: (a) sold shares 2,170 shares owned by the Defendant on November 21, 2014, prior to disclosure of the said information; (b) acquired unjust enrichment of an amount equivalent to KRW 16,92,69; (c) as the business base of the Company was changed from 00 affiliated companies to △△△ affiliated companies; and (d) anticipated that the business environment would deteriorate; (c) as the direction was changed between November 23, 2014 to 24, 206, 30, 46, 47, 47, 206, 30, 48, 204, 206, 30, 406, 40, 204, 206, 204, 206, 41, 204, 204, 206, 41, 204, 2014.

4. No executive or employee of a person who enters into or is negotiating the conclusion of a contract with a H-listed corporation utilizing undisclosed information, who becomes aware of any material nonpublic information in the course of conclusion, negotiation, or implementation of such contract, and receives such material nonpublic information from the person who becomes aware of such material nonpublic information in connection with his/her duties, shall use such material nonpublic information related to the business, etc. in the trade or other transactions of the specific securities, etc. related

The Defendant, like Paragraph 2, obtained the information that H acquired B shares in bulk from the Defendant from the I Vice-Chairperson, etc., after being instructed by the Defendant to prepare for a follow-up measure of mass disposal through G regular business as the Defendant’s commercial company, and when the information is disclosed, it was anticipated that D’s share price increase. As such, the Defendant decided to purchase H shares before the information is disclosed.

On November 26, 2014, the Defendant purchased H shares 4,760 shares with a G account in the name of the Defendant on November 24, 2014, prior to disclosure of the said information through a public announcement made on November 26, 2014.

Summary of Evidence

Omission

Application of Statutes

1. Article applicable to criminal facts;

(a) Use of undisclosed information on mass acquisition and disposal of stocks: Articles 443(1)3 and 174(3)1 of the Financial Investment Services and Capital Markets Act (Amended by Act No. 12947, Dec. 30, 2014; hereinafter the same shall apply);

(b) The point of use of material nonpublic information related to the business of a listed corporation: Articles 443 (1) 1, 174 (1) 5 and 4 of the same Act;

1. Selection of punishment;

Each decision to select a fine (normally considered below)

1. Aggravation for concurrent crimes;

Articles 37 (former part), 38 (1) 2, and 50 of the Criminal Act

1. Invitation of a workhouse;

Articles 70(1) and 69(2) of the Criminal Act

1. Additional collection:

Reasons for sentencing under Articles 10(1) and 8(1) of the Act on Regulation and Punishment of Criminal Proceeds Concealment

[Scope of Recommendation] The sentencing criteria are not applied because of the choice of fine.

【Determination of Sentence】

The Defendant, an executive officer or employee of B, who is a listed corporation, voluntarily avoided losses by selling a considerable amount of shares owned by the Defendant in a state that information on mass disposal, etc. of the shares of the company was not disclosed, as well as voluntarily avoided losses by inducing a pro rata former executive officer or employee to sell the shares, thereby avoiding a considerable amount of losses, and purchased the shares of H, which is a company acquiring the shares, and sought profits by purchasing them. The Defendant’s act is an act that lacks the trust of the listed corporation as its executive officer and is likely to seriously undermine the fairness of the capital market, and is an act that is likely to seriously undermine the fairness of the

However, the crime of this case appears to have been committed in a timely manner not to be planned but to obtain information from commercial G in a timely manner, and was punished by a fine by all the relevant persons who avoided the loss after being provided with information from the defendant as a commercial interest and internal agent of the defendant, G who was an information provider, or related persons who avoided the loss. The amount of loss avoided by the defendant himself is equivalent to approximately KRW 17 million, the facts constituting the crime are recognized and seriously against all, and there is no criminal power, an additional collection for the amount of fine and the amount of loss avoided, such as the order, shall be imposed.

Judges Senior Jin-jin