1. The Defendant: (a) KRW 55,00,000 and the Plaintiff’s annual rate from April 19, 2016 to July 8, 2016, respectively, shall be 5% and the next day.

On March 13, 2016, the Plaintiff concluded a contract with the Defendant to purchase the land C, D, E, and F and its ground buildings at KRW 910,000,000 for the purchase price, and paid KRW 55,00,000 as the down payment on the day, and paid KRW 10,00,000 for the intermediate payment on March 15, 2016.

After that, the Plaintiff and the Defendant rescinded the ordinary sales contract on March 22, 2016, and the Defendant returned to the Plaintiff the intermediate payment of KRW 100,000,000 on March 21, 2016.

(C) The plaintiff asserts that the contract was cancelled because the defendant's loan of KRW 800,000,000 to the above real estate as security was made up for the balance and the promise was not complied with, and thus, the contract was cancelled. Therefore, the plaintiff is obligated to return the down payment amount of KRW 55,00,000 and pay KRW 55,00,000 as compensation for damages equivalent to the down payment.

As to this, the defendant asserts that he does not have the obligation to return the down payment after the contract is terminated due to the plaintiff's

In case where the down payment is received in connection with the sale and purchase, it shall be deemed as the cancellation payment (Article 565 of the Civil Act), and unless otherwise stipulated that the down payment is the penalty, it shall not be deemed as the scheduled amount of damages.

(see, e.g., Supreme Court Decision 79Da217, Apr. 24, 1979). According to Party A’s statement, a sales contract written by the Plaintiff and Defendant only has a clause of cancellation money (Article 5) that the contract may be rescinded by waiving down down payment or repaying a double amount, and there is no separate agreement for penalty for breach of contract to confiscate or redeem down down payment in the event of one party’s nonperformance of obligation.

In addition, there is no assertion on the amount of damages.

Therefore, without examining who is responsible for the cancellation of the above sales contract, the defendant is obligated to return the down payment of KRW 55,000,000 to the plaintiff, and the defendant is not obligated to pay damages equivalent to the down payment (in contrast, it is insufficient to recognize that the defendant obtained a loan of KRW 800,000 and made a special agreement to cover the balance).