All appeals are dismissed.

The costs of appeal are assessed against the Defendant (Counterclaim Plaintiff).

The grounds of appeal are examined.

1. As to the ground of appeal on the duty to protect investors at the investment recommendation stage

A. The asset management company provided for in the former Indirect Investment Asset Management Business Act (amended by Act No. 8635 of Aug. 3, 2007 and enforced on Feb. 4, 2009; hereinafter “former Indirect Investment Act”) bears the duty of care to protect investors so that investors can make reasonable investment decisions based on their information by providing investors with correct information on the profit structure and risk factors of investment trust.

The duty to protect investors at the investment recommendation stage of such asset management company cannot be deemed excluded solely on the ground that the investor is not an ordinary investor but a professional investor. However, when determining the scope and degree of the duty to protect investors, the characteristics and risk level of investment trust property, investment experience and expertise of investors should be taken into account

In addition, the court shall decide the origin of facts with free conviction in accordance with logical and empirical rules, based on the principle of logic and experience, taking into account the overall purport of pleadings and the result of examination of evidence. Thus, unless it goes beyond the bounds of the principle of free evaluation of evidence, the value judgment and fact-finding belong to the discretion of the fact-finding court, and the fact-finding court has legally

(Articles 202 and 432 of the Civil Procedure Act).

For the reasons indicated in its holding, the lower court: (a) (i) the fund of this case is likely to make investments in a business highly dangerous; (b) it is difficult for investors to directly understand the current status of investments in foreign countries; and (c) the Defendant (Counterclaim Plaintiff; hereinafter “Defendant”) is the specific status of the instant development project when establishing the Fund, and the construction loans existing in the instant development project.