2. The costs of appeal shall be borne by the Defendant.

3. The text of the judgment of the court of first instance is referred to in paragraph (1); and

A. On May 30, 2010, the Defendant, an oriental medical doctor, entered into a franchise agreement (hereinafter “instant franchise agreement”) with L&C Holdings Co., Ltd. (hereinafter “N&C Holdings”) under the name of “regular Council members,” and operated the instant franchise agreement from October 2010.

B. Article 4(5) of the instant franchise agreement provides that “AWC Holdings shall have the obligation to faithfully supply the Defendant with reasonable prices the general sugar drugs using the highest-class medicinal drug, non-fluoral powder-related treatment, skin-related treatment, women’s disease-related treatment room, and other products and medical services that are being used less than sniting, and to faithfully supply the sale and prescription sanctions for medical services.” Article 5(5) of the instant franchise agreement provides that “The Defendant shall not install a hot spring room in a separate area, and shall obtain support for the supply and demand and management of medicinal herbss, and the operation of the hot spring room.”

C. The Plaintiff, a company engaging in the oriental medicine supply business, supplied oriental medicine to L&C Holdings. Since October 2010 under the above contract, L&C Holdings used oriental medicine products prescribed by the Defendant and supplied them to the Defendant. From November 10, 2010 to October 7, 2013, the Defendant directly paid the Plaintiff the price for oriental medicine products from October 201 to August 2013.

Meanwhile, in addition to the Defendant, many other oriental medical doctors, who run a franchise store of a member of the Council established by entering into a franchise agreement with a L&C brokerage company, have paid the Plaintiff the price for herb drugs directly.

Of the price of medicinal herbs used for the preparation of medicinal herbs prescribed by the defendant, the amount that the plaintiff was not paid to the plaintiff reaches KRW 7,215,465 as of December 2014.

[Ground of recognition] Facts without dispute, Gap evidence Nos. 1 through 5, Eul evidence No. 2, the purport of the whole pleadings

2. Determination.