1. All appeals by the Defendants are dismissed.

2. The costs of appeal are assessed against the Defendants.

Purport of claim and appeal

1.

1. Basic facts

A. The parties concerned are corporations established for the purpose of promoting friendship through mutual aid among the members of the Veterans Association, promoting the welfare of the members, and promoting rights and interests of the members and engaging in profit-making business and incidental business established around June 2002. Defendant B is the former head of the Business Development Headquarters established around June 2002 for the purpose of facilitating the Plaintiff’s profit-making business, Defendant D is the former head of the Plaintiff’s former deputy head of the Plaintiff, and the remainder of the Defendants are the former and present employees of the Business Development Headquarters.

B. Under the initiative of the Plaintiff’s profit-making business development headquarters and performance rates, the Plaintiff was running various for-profit businesses. Among them, the Defendants were working under the jurisdiction of the business development headquarters, and received KRW 64,18,000 from around 2006 to around 2008, including the piece rates for the instant industrialization projects from the Plaintiff, for Defendant A, KRW 18,800,000, Defendant C, and KRW 11,200,000, Defendant C, and KRW 10,600,000 from around 2006 to around 2008, respectively.

C. The parts pertaining to this case in the Korean Veterans Association Act are as follows:

Article 4-2 (Business) The Veterans Association shall carry out the following business activities to attain the purpose of Article 1:

1. Promotion of friendship through mutual aid among the members of the Veterans Association (hereinafter referred to as "member");

2. Promotion of welfare and rights and interests of the members;

3. Cooperation and assistance in homeland defense;

4. Maintenance and strengthening of friendly relations with the International Veterans Association;

5. Cultivating and inspiring the spirit of national defense;

6. Profit-making business to carry out the business activities under subparagraphs 1 through 5 and the finance of the Veterans Association under Article 16 (Finance) (1) shall be appropriated from membership fees, business income, and other income.

E. Of the provisions of the Business Development Headquarters (hereinafter “instant provisions”), the parts relating to the instant case are as follows:

Organizational Regulation 204.