1. All of the plaintiffs' claims are dismissed.

2. The costs of lawsuit are assessed against the plaintiffs.

Basic Facts

The Plaintiff Jinwon Co., Ltd. (hereinafter “Plaintiff Jinwon”) is a company aimed at wholesale and retail business of chemical medicine. Plaintiff A is operating the business of manufacturing natural fluoring and fluoring with the trade name “D,” and Plaintiff B operates the business of manufacturing salt with the trade name “E.”

Meanwhile, F Co., Ltd. (hereinafter “F”) was established on December 17, 2003, and was declared bankrupt on March 31, 2015 as follows. The Defendant’s father G runs the business of H around March 1961 with the trade name of H, and operated the F as above, and the Defendant was the representative director at the time of F’s bankruptcy.

The Plaintiff Jinwon supplied F with chemical medicine equivalent to KRW 582,584,023, from June 2004 to May 26, 2014, to F.F. The Plaintiff Jinwon paid only KRW 59,479,240 out of the price of the above product to the Plaintiff Jinwon. The amount of the unpaid product is KRW 523,104,783.

Plaintiff

A supplied F (which appears to have been supplied to an individual company before F was established) with various natural coloring agents, such as uper-Br, ske-AT, etc. from about 20 years to May 2014. The amount of the unpaid goods is KRW 329,537,500.

Plaintiff

B supplied various kinds of salt rates to F from July 2013 to May 2014, 2014, and the amount of the goods currently unpaid is KRW 540,804,400.

On July 29, 2014, F filed an application for rehabilitation with the Jung-gu District Court 2014 Ma504 on the grounds of business deterioration, etc. The above court decided to commence rehabilitation proceedings on August 19, 2014, but decided to discontinue rehabilitation procedures on November 18, 2014 on the ground that “F’s liquidation value is clearly higher than its continuous business value.”

Since then, on March 6, 2015, F filed a petition for bankruptcy with the District Court 2015Hahap1002, and the above court declared bankrupt on March 31, 2015.