The Plaintiff, the representative director of C and D (hereinafter referred to as “D”) of the Defendant Company, who is the Plaintiff, suffered damages by acquiring the said money by acquiring the said money, by paying KRW 50 million between July 1, 2014 and July 11, 2014, as it is the proposal that “A shall take over the E business through D, with the lack of acquisition funds, to lend KRW 1 billion as the acquisition fund is insufficient, and to grant the right to supply food materials, and to establish a pledge right to the shares of C Subsidiaries subsidiaries.”

Defendant A is liable for damages due to default and liability for damages pursuant to Article 201 of the Commercial Act.

Since Defendant B, as a director of Defendant D, violated the appropriate supervisory duty with respect to embezzlement and lending of money, Defendant A, the representative director, and thus, Defendant B neglected to perform his duties in bad faith or gross negligence, thereby causing damage to the Plaintiff as a third party.

Defendant B is liable to compensate for damages since he/she publicly recruited or aided and aided Defendant A to transfer KRW 751 million from the account of July 10, 2014 to Defendant B’s account and embezzled it.

Therefore, the Plaintiff, a creditor of D, sought payment of the said money from the Defendants on behalf of insolvent D.

In a judgment by public notice on claim against Defendant A (Article 194-196 and Article 208(3)3 of the Civil Procedure Act), Article 401 of the Commercial Act provides that if directors have neglected to perform their duties due to bad faith or gross negligence, the directors shall be jointly and severally liable for damages to the third party. Thus, the directors, upon delegation by the company, have breached their duty of due care as a fiduciary to the company, and have breached their duty in relation with the third party.

Even if the liability for damages is not naturally created, it is important in economy and society.