1. The instant lawsuit shall be dismissed.

2. The litigation costs shall be borne by C, expressed as the temporary representative of the plaintiff.

1. Basic facts

A. On February 25, 2014, the Defendant assumed office as the president of the Plaintiff Foundation.

B. On August 21, 2015, six directors of the Plaintiff Foundation, including C, requested the Defendant to hold a temporary directors meeting consisting of “the Defendant and directors who are the chief director, D, E’s dismissal and new directors F, G, and H’ appointment” as an agenda, but the Defendant did not convene a temporary directors meeting, but issued a temporary directors notice on September 14, 2015 on the same agenda to the directors of the Plaintiff Foundation.

Accordingly, around September 23, 2015, the temporary board of directors of the Plaintiff Foundation (hereinafter “Temporary board of directors of the instant case”) was held, and eight of all nine directors present at the meeting, excluding the Defendant, and a resolution was made to dismiss the Defendant, who is the chief director, and to appoint the Plaintiff Foundation C as the chief director of the Plaintiff Foundation’s new board of directors (hereinafter “instant resolution”).

C. The Defendant filed an application with the Seoul Northern District Court 2015Kahap2029 for provisional disposition suspending the execution of duties on the ground that the instant resolution was null and void.

On May 24, 2016, the above court rendered a decision that “C shall not perform the duties of the representative of the Plaintiff Foundation’s Foundation until the judgment on the merits of the lawsuit seeking nullification of the resolution of the Plaintiff Foundation filed by the Defendant against the Plaintiff Foundation becomes final and conclusive.”

Accordingly, C filed an objection to provisional disposition as Seoul Northern District Court 2016Kahap20206, but on October 25, 2016, the Seoul Northern District Court rendered a decision to authorize the provisional disposition to suspend the performance of duties. On October 25, 2016, the appeal was filed with Seoul High Court 2016Ra21396, but the appeal was dismissed on May 12, 2017.

On the other hand, around September 1, 2015, the Plaintiff Foundation paid 3,000,000 won to I and 35,360,250 won to J respectively.

C For the reason that the Defendant embezzled the sum of KRW 65,360,250 on behalf of the Plaintiff Foundation, the Defendant’s embezzlement is an occupational embezzlement.