Litigation costs shall be borne by the plaintiff.

A. On March 12, 2014, the Plaintiff opened a futures option account (i.e., account number D; hereinafter “instant futures option account”) in C Co., Ltd. (hereinafter referred to as “Co., Ltd.”) and deposited KRW 40,000,000, and delegated the management of the instant futures option account to the Defendant, who had served as an investment adviser in C.

B. However, on September 15, 2015, the Defendant, at the Plaintiff’s request, prepared and delivered to the Plaintiff a letter of commitment to the effect that “the Defendant shall maintain the balance of the instant futures option account at KRW 40,000,000, and if it is impossible to maintain the balance, the balance shall be compensated for if it is not available” (hereinafter “instant letter of commitment”).

C. As of September 30, 2016, the balance of the instant futures option account was KRW 2,541,428, and the Plaintiff suffered loss of KRW 37,458,572 due to the Defendant’s futures option transaction.

[Ground of recognition] Unsatisfy, entry of Gap evidence 1 to 4, and purport of whole pleadings

2. Determination on the cause of the claim

A. The gist of the Plaintiff’s assertion is as follows: (a) the Defendant committed an illegal act of unfair solicitation, voluntary trade, and excessive trade; (b) incurred a loss of investment amounting to KRW 37,458,572 in the instant futures option account; and (c) thereby, the Plaintiff suffered damages equivalent to the same amount.

Therefore, the Defendant is obligated to pay the Plaintiff damages for tort, KRW 37,458,572, and damages for delay.

First, in order to actively encourage the Plaintiff, who does not have knowledge and experience in futures option transactions, to maintain the instant futures option account where a significant loss was incurred, the Defendant made an unfair solicitation prohibited by Article 49 of the Financial Investment Services and Capital Markets Act.