1. The instant lawsuit shall be dismissed.

2. The costs of litigation shall be borne by the plaintiffs.

Basic Facts

The following facts shall not be disputed between the parties, or may be acknowledged by adding up the whole purport of the pleadings to each entry in Gap evidence 1 through 4:

The Defendant Association B (hereinafter referred to as the “Defendant Association”) is an incorporated association established with C as its members pursuant to Articles 82(3) and 28 of the Medical Service Act, and the Defendant A is a director (the president) who is the representative of the Defendant Association.

Upon the commencement of an investigation into the suspicion of embezzlement of former directors D, Defendant A was indicted by Seoul Central District Court 2017Kadan2364 on December 15, 2017 and was sentenced to a suspended sentence of two years on December 15, 2017, and the appeal was dismissed on July 12, 2018. As such, the above sentence became final and conclusive.

The articles of incorporation of the Defendant Association relating to this case shall be as follows:

Article 18 (Composition of Representatives) Representatives of the plenary session shall be comprised of representatives elected in the proportion of one chairperson and one person per 70 members.

Article 38 (Matters for Resolution of General Meeting of Representatives) The General Meeting of Representatives shall pass resolutions on the following matters:

8. Matters concerning the non-Confidence of the chairperson, if the chairperson falls under any of the following subparagraphs, he/she shall be non-Confidence:

1. Sentence of imprisonment without prison labor or heavier punishment;

(e) Provided, That this shall not apply where he/she has been sentenced to imprisonment without labor or heavier punishment inevitably due to the execution of a meeting for public interest, such as a member emergency general meeting, or where he/she has been sentenced to imprisonment without labor or greater punishment inevitably due to the operation of

2. Where it violates the articles of incorporation or a resolution of a general meeting of delegates and important rights and interests of members;

3. When the honor of the plenary session is seriously impaired, the non-Confidence for the two chairpersons shall be constituted at least 1/4 of the members with voting rights or at least 1/3 of the incumbent representatives, shall be decided at the representative general meeting with the consent of at least 2/3 of the incumbent representatives, and the president shall be suspended from the date of resolution;

The plaintiffs' assertion that defendant A is the embezzlement of former directors D' public funds.