A. On June 14, 2015, the Plaintiff entered into a discretionary investment contract (hereinafter “instant discretionary investment contract”) with the Defendant and the term of the contract from June 15, 2015 to September 14, 2015, wherein the contract amount is KRW 350,000,000, with the said contract amount being invested in securities, such as stocks and convertible bonds listed on the Stock Exchange or the KOSDAQ, other company bonds, financial bonds, derivatives, etc., and to vest the profits and losses incurred from investment in the Plaintiff.

Under the aforesaid discretionary investment contract, the Plaintiff paid the Defendant the total of KRW 350,000,000,000 for six times from June 16, 2015 to September 15, 2015, and KRW 360,50,000 for the discretionary investment fee.

B. At the time of the conclusion of the instant discretionary investment contract, the Defendant is an enterprise authorized regularly by the Financial Supervisory Service, and the Defendant’s invested futures products are highly likely to incur losses, so the principal of investment is guaranteed. The Plaintiff deceivings the Plaintiff that at least 2.5% of the monthly revenues can be received.

However, in fact, in violation of Article 17 of the Financial Investment Services and Capital Markets Act, the Defendant engaged in the investment business without registering the financial investment business. In violation of Article 98(1)3 of the Financial Investment Services and Capital Markets Act, the Defendant employed monitoring personnel, who are not specialized operating personnel, to conduct the discretionary investment business and operated the discretionary investment business. The Defendant used the investment fund to prevent return to senior investors instead of using it for overseas futures investment.

C. Due to the Defendant’s intentional or negligent unlawful act, the Plaintiff sustained damages equivalent to KRW 23,449,615, which was paid by the Defendant to the Defendant as revenue from the instant discretionary investment contract (i.e., KRW 23,444,845, Jul. 24, 2015) (i.e., KRW 10,356,465, Sept. 2, 2015) after deducting KRW 337,05,380,385, which was paid to the Defendant.