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

A. The Plaintiff Cooperative is an agricultural cooperative established for the purpose of enhancing the agricultural productivity of its members and expanding markets for agricultural products produced by its members and facilitating the distribution of agricultural products, and the Defendant is a person retired from office in the Plaintiff Cooperative from September 7, 2010 to June 30, 2016.

B. C Co., Ltd. (hereinafter “C”) is a company established on January 10, 2012 for the purpose of operating grain processing business, etc., and D Co., Ltd. (hereinafter “D”) is a company established on September 9, 2004 for the purpose of operating rice processing business, etc., and both companies are companies operated by E, in fact, registered as internal directors on the register.

C. From around 2010, the Plaintiff Mutual Aid Association concluded an agreement on credit transactions with C and D with agricultural products, and supplied grain to the same company on credit without collateral, on July 29, 2014, on July 29, 2014, decided that the credit transaction limit for the above two companies was KRW 1 billion, respectively.

On January 29, 2015, the Plaintiff Union presented a proposal to increase the credit trading limit to the above two companies in KRW 1.5 billion each in the first regular period of society in 2015, and the directors present at the time decided to approve the proposal as a whole through discussion.

E. The Plaintiff Union supplied C with 1,168 tons of grain equivalent to KRW 1,589,291,00, and 1,113 tons of grain equivalent to KRW 1,494,941,00 for each credit. However, C was paid KRW 157,848,00 of the credit amount, and the remainder of KRW 2,926,384,000 (i.e., KRW 1,431,443,000) was not paid.

F. Meanwhile, the regulations on the regulation on the financing and financing of the Plaintiff Union cannot exceed the larger amount between 20/100 of the Plaintiff Union’s equity capital or 1/100 of its total assets (within the maximum amount of 500 million won). In this case, loans, etc. granted on the account of the Plaintiff’s own account under another person’s name.