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. The following facts are acknowledged as either of the parties to a dispute or as a whole by taking account of the overall purport of the pleadings in each entry in Gap evidence A Nos. 1 to 4:

A. On June 2, 2014, the Plaintiff entered into a siren agreement with the Defendant (around May 4, 2016, from a stock company C, to a change of trade name as at the present time; hereinafter collectively referred to as “Defendant”) with the following content (hereinafter referred to as “instant siren agreement”).

1) Vehicle information: franchiseer HGD (hereinafter referred to as “instant vehicle”);

(ii) the agreed period: 48th month rental fees: 721,600 won (including value-added tax) overdue interest rate: 24 percent;

B. After the instant siren contract, the instant vehicle was returned to the Plaintiff on April 19, 2017, and the instant siren contract was terminated around that time.

C. As of August 9, 2017, the obligation for settlement due to the termination of the instant siren contract is the total sum of overdue rental fees, payment in arrears, and earlier termination fees calculated in accordance with Article 14 of the terms and conditions of the instant siren contract, and KRW 8,241,693, and damages for delay 645,281.

2. Determination

A. According to the above facts, the defendant is obligated to pay to the plaintiff delayed rental fees, substitute payments, early termination fees, and damages for delay to the plaintiff, barring special circumstances (=8,241,693 won) and damages for delay for KRW 8,241,693 claimed by the plaintiff among them (=8,241,693 won).

B. As to this, the Defendant: (a) was unable to conclude the instant siren contract with the Plaintiff because the Defendant’s company E (hereinafter “E”) located in the Defendant’s factory could not conclude it; (b) the Defendant concluded the instant siren contract with the Plaintiff; (c) was a contracting party; and (d) decided to accept the Defendant’s status after about two months after the conclusion of the siren contract; and accordingly, (e) requested the Plaintiff to change the parties to the instant siren contract from the Defendant to E several times, but the Plaintiff rejected it.