JS Asset Management Co., Ltd. entered into a memorandum of understanding to acquire 82.57% stake in Smarty Savings Bank from Dayou A-Tech Co.,Ltd (KOSE:A002880) and Dayou Plus Co., Ltd. (KOSE:A000300) for KRW 78 billion on February 14, 2018. As on February 28, 2018, the agreement was signed for the deal. Dayou A-Tech Co.,Ltd and Dayou Plus Co., Ltd. will transfer 1.39 million shares for KRW 38.7 billion and 1.41 million shares for KRW 39.2 billion respectively. Under the terms of the transaction, JS Asset Management Co., Ltd. will make a guarantee deposit of KRW 100 million until February 27, 2018. As per amendment report on May 4, 2018, Smart Investment Partners Co., Ltd entered into a contract to acquire 82.57% stake in Smarty Savings Bank from Dayou A-Tech Co.,Ltd and Dayou Plus Co., Ltd. for KRW 78 billion. Subsequently, JS Asset Management Co., Ltd. transferred all of its contractual status and rights obligations as a buyer on the above stock trading contract to Smart Investment Partners Co., Ltd. As on May 4, 2018, the new agreement was signed with the new buyer. Post transaction, Dayou A-Tech Co and Dayou Plus Co., Ltd will not hold any stake in Smarty Savings Bank. As per amendment on August 31, 2018, Dayou Plus Co., Ltd revised the consideration for 1.4 million shares sold by it to KRW 40.2 billion.

The transaction was resolved by the Board of Directors of Dayou Plus Co., Ltd. on February 14, 2018. The transaction is expected to close on August 24, 2018. The transaction is expected to close on August 31, 2018 as per amendment report on May 4, 2018. As per amendment on August 31, 2018, the transaction is expected to close on December 31, 2018. As of December 31, 2018, the transaction's closing was postponed for an undefined period.

Smart Investment Partners Co., Ltd cancelled the acquisition of 82.57% stake in Smarty Savings Bank from Dayou A-Tech Co.,Ltd and Dayou Plus Co., Ltd. on October 1, 2019. Smart Investment Partners Co., Ltd. has not received the necessary approval to acquire shares of the Financial Services Commission for the purchase of shares of Smart Savings Bank until September 30, 2019. Therefore, the agreement for the sale of shares was lifted as of October 1, 2019, based on the "agreement" dated May 20, 2019, signed between Smart Savings Bank and DAYOU AUTOMOTIVE SEAT TECHNOLOGY CO., LTD and Smart Investment Partners Co., Ltd. Smart Investment Partners Co., Ltd. has revocated to sell other company's units. Smart Investment Partners Co., Ltd. assumes the obligation to return the deposit received from Smart Investment Partners Co., Ltd. in accordance with the contract for the sale of shares. Because the buyer is responsible for the cancellation of the stock sale contract, we will return the amount except the penalty that Smart Investment Partners Co., Ltd. has to pay under the stock sale contract.