1. The plaintiff's appeal is dismissed.

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

The purport of the claim and appeal is the purport of the appeal.

1. Basic facts

A. On June 22, 2004, the Plaintiff and the Defendant supplied the Plaintiff with the teaching materials products as its head office, and the Plaintiff, as its head office, concluded a branch contract with the content that securing exclusive business rights in the pertinent region and selling the products supplied by the Defendant (hereinafter “instant contract”).

B. Article 17(2) of the instant contract provides to the effect that “The products are shipped out by the Plaintiff’s prior order, and thus, cannot be returned in principle other than the damaged products or the product defective in the process of transport. However, the Defendant may allow return within 10% through mutual consultation in extenuating circumstances in the early establishment of the Plaintiff’s branch office or the operation of the branch office.”

C. On June 22, 2004, the Plaintiff paid KRW 5 million to the Defendant as a security deposit for the Plaintiff’s goodwill, and the said security deposit agreed to refund the full amount within three months after deducting the amount of the claim upon the rescission of the instant contract or the termination of other transactions.

The Plaintiff and the Defendant did not enter into a mutual transaction after December 21, 2012, and at the time, the amount of the product that the Plaintiff had not paid to the Defendant was KRW 4,853,870.

E. On July 2013, the Plaintiff returned all the products supplied by the Defendant and kept by the Defendant.

F. After confirming the products returned by the Plaintiff, the Defendant calculated the amount of KRW 7,364,250, and calculated the refund amount to the Plaintiff as KRW 2,945,70, which is 40% of the above value. After that, the Defendant calculated the final settlement amount to be paid to the Plaintiff on September 10, 2013 as KRW 3,091,830 (i.e., refund of KRW 5,000,000 - KRW 2,945,700 - Plaintiff’s account payable to the Plaintiff) and paid it to the Plaintiff.

G. On January 2014, the Plaintiff returned goods to the Defendant on or around July 2013, which was equivalent to KRW 8,259,620, and the amount of the returned goods, excluding the portion of the deposit, was KRW 3,259,620, and deposit KRW 5,00,00.