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| TITLE | Supreme Court Decision 2019Do12887 Decided May 30, 2024 【Violation of the Financial Investment Services and Capital Markets Act】 [full Text] |
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| Summary | |
| 【Main Issues and Holdings】 [1] Intent of Article 178 of the Financial Investment Services and Capital Markets Act to prohibit unfair practices in trading and transaction of financial investment instruments that undermine fairness, reliability, and efficiency [2] Meaning of “unfair means, scheme, or trick,” which is an unfair practice prohibited in Article 178(1)1 of the Financial Investment Services and Capital Markets Act, and standards for the determination thereof [3] Meaning of “material fact” and “money or any interest in property” in “attempting to earn money or any interest in property by using a document containing a false description or representation of a material fact,” which is an unfair practice prohibited in Article 178(1)2 of the Financial Investment Services and Capital Markets Act Whether the accused must have actually earned money or any interest in property from a false description or representation (negative), and standards for determining whether there was an intention to earn money and any interest in property [4] Standards for determining whether a public disclosure constitutes a false description or representation in a case where a stock-listed company provided the market with information through a public disclosure after having completed internal procedures, such as the passage of a resolution by the board of directors about a capital raise through the offering of shares or spending on new business enterprises, and whether the publicly disclosed matters constitute a false description or representation and thus whether or not the company committed unfair trading practices prohibited under Article 178(1)2 of the Financial Investment Services and Capital Markets Act is disputed Even when the relevant publicly disclosed information per se cannot be considered as fraud because it reflected the matters subject to disclosure, such as a resolution passed by the board of directors, as they stand, whether the act of allowing such a disclosure to be made may fall under the use of “unfair means, scheme, or trick” under Article 178(1)1 of the said Act (affirmative to a limited extent), and standards for the determination thereof | |
