1. The defendant's appeal is dismissed.

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

Purport of claim and appeal

1...

1. Facts of recognition;

A. The Plaintiff and the Defendant supplied various products produced and supplied by the Plaintiff to the Defendant at an appropriate price, and the Defendant concluded a contract for goods supply (hereinafter “instant goods supply contract”) for the purpose of selling products supplied by the Plaintiff and promoting mutual interests.

B. According to the instant goods supply contract, from June 1, 2014 to June 30, 2011, the Plaintiff supplied the Defendant a total of KRW 14,245,345 (including value-added tax). The Defendant paid KRW 5,00,000 to the Plaintiff on June 29, 2014.

C. The Defendant’s goods payment obligation against the Plaintiff reaches KRW 9,245,345 as of June 30, 2014.

[Ground of recognition] Facts without dispute, entry of Gap evidence 1, 3, 4, and 5, the purport of the whole pleadings

2. According to the above facts of determination, the Defendant is obligated to pay to the Plaintiff the unpaid amount of KRW 9,245,345, and damages for delay calculated at the rate of 15% per annum from February 29, 2015 to the day of full payment, which is the day following the delivery of a copy of the instant complaint, sought by the Plaintiff, as the day of the delivery of the goods supply.

3. Judgment on the defendant's assertion

A. Defendant’s assertion 1) A defect occurred in the joint board supplied by the Plaintiff, and thereby, the Defendant incurred a loss equivalent to KRW 9 million. However, the Plaintiff also agreed to exempt the Defendant from the joint board price and pay damages of KRW 2 million separately. 2) On June 15, 2012, the Defendant paid KRW 5 million to the Plaintiff as a security deposit. Since the Plaintiff’s instant lawsuit concluded a transaction relationship between the Plaintiff and the Defendant, the Plaintiff should return the said KRW 5 million to the Defendant.

3. The defendant shall use the plaintiff's damage claim amounting to the above nine million won and the claim for the refund of deposit amounting to five million won as the automatic claim, from the amount equal to the plaintiff's claim for the purchase price of goods.