The judgment below

The part against Defendant A is reversed, and this part of the case is remanded to the Seoul Central District Court.

The grounds of appeal are examined.

1. As to the ground of appeal on Defendant A’s employer liability

A. Where a contractor has reserved the right of specific direction and supervision on the progress and method of the work of the contractor, the relationship between the contractor and the contractor is substantially different from the relationship between the employer and the employee, and the contractor cannot be exempted from the employer's liability for damages caused by illegal acts of the contractor or the third party employed by the subcontractor.

A contractor’s direction and supervision over a contractor, which serves as the basis for recognition of an employer and an employee, refers to the management of construction itself by directly ordering, supervising, monitoring, and encouraging the operation and implementation of a specific construction project (see, e.g., Supreme Court Decision 83Meu153, Nov. 22, 1983). Such circumstances shall be responsible for proving that the claimant is liable.

B. The reasoning of the judgment below reveals the following facts.

(1) On April 26, 2012, E contracted the construction of solar power plants to Defendant A Co., Ltd. (hereinafter “A”) on the roof of a building in operation (hereinafter “Dong”) as indicated in the lower judgment.

(2) On August 24, 2012, Defendant A subcontracted the supply and installation of solar structures during the foregoing construction to Defendant B Co., Ltd. (the former trade name before the change was N., Ltd.; hereinafter “Defendant B”). Defendant B re-subcontracted the installation of solar structures adjoining to solar structures on the same day on the condition that materials, such as solar cell boards, servers, and access teams, are supplied to C.

(3) At around 13:00 on September 24, 2012, D employed as a day-to-day watch to C used a steel string bridge on the rooftop of a solar structure on the roof of a building operated under C. On the other hand, a fire was caused in a building in operation by putting a stringe, etc. on the wall’s surface while the flames generated in the process of the operation are separated from rainwaters located as inflammable materials, and thereafter, the building in operation was adjacent to the lower judgment.