1. The Defendant amounting to KRW 17 million to the Plaintiff and the Plaintiff’s annual rate of 5% from July 2, 2019 to October 10, 2019.

Facts of recognition

The Defendant is an organization organized to establish a regional housing association to build and sell apartment houses of approximately 630 households with approximately 31,894 square meters in Busan Shipping Daegu C, Busan Metropolitan City, to its members (hereinafter “instant project”).

The defendant of the security certificate shall guarantee that all of the amounts included in the down payment and business promotion expenses paid shall be refunded in the case of items 1 and 2 only to the following members:

1. In the event that an application for authorization for establishment is not filed within one year from the inaugural general meeting, the Defendant (2 omitted) entered into a contract with the Defendant on August 21, 2017, under which the Plaintiff would join a regional housing association to be established by the Defendant and pay the share of expenses for the instant project, but would purchase an apartment to be newly constructed as the instant project (hereinafter “instant subscription agreement”), and received a certificate of safeness from the Defendant’s representative as follows:

The Plaintiff paid KRW 17 million (including service costs of KRW 7 million) out of the expected contributions by April 13, 2018, pursuant to the instant subscription agreement, until April 13, 2018.

On September 20, 2017, the Defendant held an inaugural general meeting, and the Defendant did not file an application for authorization of the establishment until the date of closing the argument in this case.

[Ground] Facts without dispute: Gap's evidence 1 to 3, 6's evidence 4, 7, 19, 20, and 26's each statement, the purport of the whole pleadings, but a local housing association, which is a local association established to establish a collective housing of its members as a member of a non-resident without the nature of the defendant, has the purpose of collective housing construction project, and has the rules and organization as a group, and if the organization itself has a major purpose of its existence, regardless of the change following the withdrawal of its members, it constitutes a non-corporate association so-called non-corporate group.

Supreme Court Decision 201Na1488 delivered on June 28, 1994