1. The Defendants are jointly and severally and severally liable to the Plaintiff for KRW 877,615,250 out of KRW 1,281,960,349 and the said amount, starting from June 1, 2018.

1. Basic facts

A. The Plaintiff is a company that runs the wholesale and retail distribution business. The Defendants were working as employees of the said company and entered into an independent distribution operation agreement with the Plaintiff around January 1, 2016 (hereinafter “instant contract”).

B. On January 1, 2016, the Plaintiff entered into the instant contract with the Defendants. The main contents of the instant contract are as follows.

The plaintiff of the distribution independent accounting contract and the defendants of the independent accounting division in the distribution business division enter into a contract on the supply transaction of goods as follows:

Article 1 (Purpose of Independent Accounting) The purpose of this article is to enhance efficiency by specialization of the distribution (special marketing) business division through independent management and reasonable operation of the defendants.

Article 2 (Terms and Conditions of Contracts) The Defendants create profits by purchasing goods under the Plaintiff’s name and financing and supplying them to the seller, and the examination of the purchaser and the seller should be determined under the authority of the Defendants and all the issues arising from commercial transactions.

III.(Terms and Conditions of Contracts) 40% (Plaintiffs) of the profit (net profit obtained by subtracting basic expenses): 60% (Defendants) generated from the sale and purchase transaction.

Article 4 (Compensation for Delay) The Defendants shall pay the Plaintiff penalty for delay at the rate of 1.5% per month from the day following the date of payment to the date of full payment, if they fail to pay the price on the date of payment of the goods at the sales office under Article 2.

Article 5 (Matters of Special Agreement)

1. The Defendants, as independent branches of accounting, shall be liable for all civil and criminal liability in cases where the Plaintiff’s disadvantage is incurred due to the failure to recover the price of the goods supplied in Article 2.

2. The Defendants shall be liable to recover all claims under Article 2 and shall pay in full when the defective claims accrue.

Article 6 (Term of Contract)

1. It shall be from January 1, 2016 to December 31, 2016, and shall be trade name during the term of this contract.