All appeals are dismissed.

Costs of appeal shall be borne by each party.

1. The defendant's grounds of appeal are examined.

The Korean Teachers' Credit Union (hereinafter referred to as the "Mutual Aid Association") which is the plaintiff shall conduct the payment to the members of the Korean Teachers' Credit Union (Article 1), the various welfare projects for the members, the projects for raising funds and the profit-making projects necessary for accomplishing the purpose thereof, as a juristic person established under the Korean Teachers' Credit Union Act to promote the stabilization

§ 11(B) represent the Mutual-Aid Association as its officers and exercise overall control over the operation and affairs of the Mutual-Aid Association.

(Article 16(1). Except as provided by the Korean Teachers' Credit Union Act, the provisions of the Civil Act governing incorporated associations shall apply mutatis mutandis to the Mutual Aid Association.

(Article 25) The relationship between the Mutual-Aid Association and B is similar to the relationship between the Association and the director.

B is liable for damage to the Mutual-Aid Association when he/she has been negligent in performing his/her duties with due care as a good manager (hereinafter referred to as "the duty of due care").

(Article 61 and Article 65 of the Civil Act). B of the Mutual-Aid Association is obligated to take care of determining investment in conformity with the interests and business objectives of the Mutual-Aid Association after collecting necessary information within reasonable limits in light of the object and scale of investment, methods of collection structure, etc., and reviewing and examining whether the investment is in conformity with the objectives of the Mutual-Aid Association.

B If damage is incurred to the Mutual-Aid Association by making an investment in neglect of such duty of care, the Mutual-Aid Association shall be liable to compensate for the damage.

B. For the following reasons, the lower court recognized the Defendant’s liability for damages on the ground that the Defendant neglected the Plaintiff’s duty of care required in the course of performing his duties and caused damages to the Plaintiff.

(1) The Plaintiff’s investment and loss in C Private Equity Funds (hereinafter “C”) on March 19, 2007.