2. The costs of lawsuit shall be borne by the Plaintiff.

A. On June 2016 and July 2016, the Defendant expressed the phrase “D (hereinafter “D”) representative director E of the D Co., Ltd. (hereinafter “D”) that “the agency allocation volume of F, G, H, I, etc. to be listed (hereinafter “instant public offering”) can be considered as 105% of the public offering price. As such, the Defendant would guarantee the principal of the investment and pay 50% of the profits.”

B. Accordingly, the Defendant solicited the Plaintiff to make the instant public offering, and the Plaintiff transferred the sum of KRW 117,440,000,000 to D as the said public offering capital investment, from June 10, 2016 to July 22, 2016.

C. However, despite the receipt of investment funds under the name of a public offering, E has to invest only only a part of the investment funds in the public offering share, and most of them have to be used in the repayment of debts to existing investors. Since it is not a managing entity or beneficiary of the fund, there was no intent or ability to pay principal and earnings to the victims such as the Plaintiff.

Nevertheless, in collusion with J, E acquired approximately KRW 2.26,855 million in total from 9 victims, including the Plaintiff’s investment amount of KRW 1.177,440,000,00 from 9 victims, as a public offering investment amount, and thereby, it became final and conclusive that E was sentenced to three years of imprisonment.

(Ground of recognition), Gap evidence 7, the purport of the entire pleadings, and the facts of the absence of dispute (applicable to recognition)

2. Determination

A. The main point of the Plaintiff’s assertion is as follows, and the Defendant acquired a total of KRW 1.21,074 million from the Plaintiff as a public offering principal investment, thereby causing damage equivalent to the above amount to the Plaintiff.

Therefore, as part of the above damages, the defendant is obligated to pay damages of KRW 1100 million and damages for delay to the plaintiff.

(1) The Defendant is actively engaged in the above fraudulent conduct of E, such as preparing and delivering the stock acquisition agreement and the details of the transaction with respect to the instant public offering made between the Plaintiff and D, and receiving KRW 19 million in the amount of money.