1. Facts of recognition;

A. The Plaintiff (Counterclaim Defendant; hereinafter “Plaintiff”) concurrently carried out red ginseng processing and retail business with the trade name “C”, and the Defendant (Counterclaim Plaintiff, Defendant Counterclaim Plaintiff, and Defendant (hereinafter “Defendant”) acquired a store located in Busan, the Plaintiff leased on July 2012, and sold red ginseng products, etc., and received orders from the Plaintiff from the Plaintiff at any time.

B. The Plaintiff supplied red ginseng products, etc. to the Defendant only until November 3, 2012. At that time, the Defendant’s acquisition price and the unpaid amount of the product price to the Plaintiff was KRW 4,154,000, and the Defendant closed down the store operated on May 3, 2013.

[Reasons for Recognition] Uncontentious Facts, Gap evidence 1, 2, Eul evidence 4, Eul evidence 11-5, Eul evidence 11-6, the purport of the whole pleadings

2. Determination on the principal lawsuit and the counterclaim claim

A. According to the above facts of recognition as to the cause of the principal claim, the Defendant is obligated to pay to the Plaintiff an amount equivalent to KRW 4,154,000.

B. 1 The defendant asserts to the effect that, upon entering into the contract with the plaintiff and F member shop contract, the plaintiff deceivings the defendant at the time of entering into the contract, the contract was cancelled or the contract was cancelled on the ground of the plaintiff's nonperformance of the contract, and the plaintiff is obligated to pay the defendant the sum of KRW 21,473,800,000, including lease deposit, etc., purchase cost for the franchise store business, KRW 4 million, and KRW 21,473,80,000,000, including monthly rent for the franchise business.

It is insufficient to conclude a franchise store contract in addition to the fact that only the statements in the Evidence Nos. 2 and 3 as well as testimony of the witness E, the Defendant negotiated to enter into a franchise store contract with the Plaintiff, and the Plaintiff entered into a contract with the Plaintiff to be supplied with red ginseng products, etc., and accordingly, the above red ginseng products, etc. were supplied.

Therefore, the franchise contract is concluded.