A. The Plaintiff is a person engaged in the business of selling electromagnetic paper fibers used for the interior materials of electronic equipment with the trade name of “C”, and the Defendant is a person engaged in the business of manufacturing brailles used for electronic equipment, etc. in the trade name of “D”.

B. From November 2013, the Defendant entered into a contract with the Plaintiff on the supply of electromagnetic shielding fibers, which stipulates that the payment shall be made by settling the supply quantity at the end of each month and by issuing an electronic bill at least three months after the due date of payment (hereinafter “instant contract”).

C. However, the facts revealed that the Defendant began to purchase a factory site with a loan around 2010 and repair and extension of a building, and the liquidity of the fund becomes worse. On November 201, 201, products supplied by Samsung Electronic Co., Ltd. to its collaborative companies have been treated as completely defective, causing losses equivalent to KRW 1.2 billion and their financial standing has deteriorated rapidly. At around 2013, Brazil-ROMs were detected from the products to be supplied to the U.S. P. P. P., upon the suspension of transaction with the Defendant, the Defendant did not have any intent or ability to pay the price of the goods normally, even if concluding the instant contract with the Plaintiff.

Nevertheless, the Defendant, by deceiving the Plaintiff, was supplied with goods equivalent to KRW 649,802,450 in total from November 19, 2013 to May 1, 2014, by deceiving the Plaintiff and by deceiving the Plaintiff, and did not pay the price of the goods.

E. As above, the Defendant was charged with the charge of violating the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Fraud) by Suwon District Court 2014Da732 on the ground that the Defendant deceivings the Plaintiff and acquired the property, and the said court sentenced the Defendant to a punishment of two-year imprisonment on May 28, 2015.

The Defendant appealed against this, Seoul High Court Decision 2015No1666, but the above appeal was dismissed on October 2, 2015, and Supreme Court Decision 2015Do1594 Decided January 28, 2016.