| (1) | "Transaction prescribed by Presidential Decree" in Article 180-2 (1) of the Act means any of the following: |
| 1. | A transaction of securities other than listed stock certificates; |
| 2. | A transaction of listed stock certificates for the provision of liquidity and market creation prescribed by the Securities Market Business Regulations and the Derivative Market Business Regulations and Article 393 (2) of the Act; |
| 3. | A transaction of listed stock certificates to fully or partially reduce economic losses that could occur in the future due to the provision of liquidity and market creation referred to in subparagraph 2; |
| 4. | Other transactions of listed stock certificates determined and publicly notified by the Financial Services Commission, which are inevitable for operating the securities market efficiently and have a minor effect on the securities market. |
| (2) | "Period prescribed by Presidential Decree" in Article 180-2 (3) of the Act means five years. |
| (3) | The net position prescribed in Article 180-2 (1) of the Act (hereinafter referred to as "net position") shall be calculated by deducting the quantity referred to in subparagraph 2 from the quantity referred to in subparagraph 1 for each item of listed securities: |
| 1. | Total balance held: The aggregate quantities of the following securities held by a seller as prescribed in Article 180-2 (1) of the Act (hereafter in this Article referred to as "seller") at the time determined and publicly notified by the Financial Services Commission (hereinafter referred to as "base point of time"): |
| (a) | The quantity of securities owned by the seller on his or her own account, regardless of in whose name they are held (excluding where a third person exercises the right to acquire or disposes of such securities in accordance with provisions of any statute, a money trust contract, a discretionary investment contract, or any other contract); |
| (b) | The quantity of securities lent to a third person in accordance with provisions of any statute, contract, etc.; |
| (c) | Where the right to acquire or dispose of the securities are held for the sake of a third person in accordance with the provisions of any statute, a money trust contract, a discretionary investment contract, or any other contract, the quantity of the securities corresponding thereto; |
| (d) | The quantity of other securities to be delivered in accordance with provisions of any statute, contract, etc.; |
| 2. | Total balance borrowed: The aggregate quantities of the following securities that the seller is required to deliver at the base point of time: |
| (a) | The quantity of securities borrowed before the base point of time and not redeemed as at the base point of time; |
| (b) | The quantity of other securities that a seller is required to deliver in accordance with provisions of any statute, contract, etc. |
| (4) | Any of the following sellers shall file a report stating matters concerning the net position with the Financial Services Commission and the exchange where the relevant securities are listed: |
| 1. | A person in whose case the ratio of daily net position to the total issued quantity (limited to the quantity listed on a securities market as at the base point of time) of each issue of the relevant securities (hereinafter referred to as "ratio of net position") is a negative number and the absolute value of which is not less than 1/10,000: Provided, That excluded herefrom are persons in whose case the appraised value of the daily net position calculated by the formula determined and publicly notified by the Financial Services Commission is less than 100 million; |
| 2. | A person in whose case the ratio of net position is a negative number and the appraised value of daily net position calculated by the formula determined and publicly notified by the Financial Services Commission is not less than one billion won. |
| (5) | Other details necessary in relation to the timing, procedure and method for filing reports on net positions shall be determined and publicly notified by the Financial Services Commission. |
[This Article Newly Inserted on Jun. 28, 2016]