1. The plaintiff's appeal is dismissed.

2. The costs of appeal shall be borne by the Plaintiff.

Purport of claim and appeal

Judgment of the first instance.

1. Basic facts

A. On November 21, 2006, the Plaintiff entered into a contract (hereinafter “instant investment contract”) with A Co., Ltd. (hereinafter “A”) whose representative director was the Defendant, and the Plaintiff entered into a contract with the Defendant to invest KRW 100 million (hereinafter “instant investment amount”) in the business of constructing two complexes and commercial buildings on the ground of Osan-si (hereinafter “instant business”).

A agreed to distribute 5% of the total amount of profit to the Plaintiff in the instant investment contract (Article 5(2)), but to pay KRW 100 million to the Plaintiff the principal of the investment and KRW 50 million if it is impracticable to undertake the project due to delay in the return of the investment amount and inevitable reasons.

(Article IV, Section 3). (b)

The Plaintiff agreed to deposit the instant investment in the instant investment contract into the Defendant’s personal deposit account (FF) (Article 4(1)), and accordingly, remitted the amount of KRW 100 million to the Defendant’s personal deposit account.

C. However, upon the occurrence of the instant project, A, on August 21, 2009, paid a total of KRW 226 million to the Plaintiff (i.e., KRW 100 million penalty of KRW 50 million for the instant investment amount of KRW 100 million from November 1, 2007 to December 31, 2009, an interest rate of KRW 76 million, which is the day following the date of return, shall be paid from November 1, 2007 to December 31, 2009, and among them, agreed to pay KRW 50 million until November 10, 2009; and the remaining amount by December 31, 2009 (hereinafter referred to as the “instant payment agreement”); and C jointly and severally guaranteed the said obligation of D.

On the other hand, a person who actually led the instant project while operating A is C, and the defendant was a formal representative director of A and did not participate in the operation at all.

[Ground of recognition] Facts without dispute, Gap evidence 1, 2 and 4-1, the result of the party's examination, the purport of the whole pleadings

2. Judgment on the plaintiff's assertion

A. First, the Plaintiff was not properly used for the original purpose of the instant business.