The judgment below is reversed and the case is remanded to Seoul High Court.

The grounds of appeal are examined (to the extent of supplement in case of supplemental appellate briefs not timely filed).

1. The exercise of rights shall be in accordance with the principle of trust and good faith (Article 2 of the Civil Act); the parties to legal relations shall not exercise their rights or perform obligations in such a way as to undermine equity or trust (see, e.g., Supreme Court Decisions 9Da53490, May 15, 2001; 2002Da1321, Mar. 10, 2006); and Article 52 subparag. 3 of the former Securities and Exchange Act (repealed by Article 2 of the Addenda of the Financial Investment Services and Capital Markets Act, No. 8635, Aug. 3, 2007) prohibits customers from taking appropriate measures to prevent conflicts of interest between a securities company and its executives or employees from being enacted under Article 36-4 of the former Enforcement Decree of the Securities and Exchange Act (amended by Presidential Decree No. 20947, Jul. 29, 2008; Presidential Decree No. 20043, Mar. 10, 2006).

In light of the above purport of the provisions of the Civil Act and the former Securities and Exchange Act, securities companies shall not exercise or perform their rights or obligations with a view to undermining investors’ trust in issuing, trading, or any other transaction of securities. Therefore, conflicts of interest shall not occur between investors and investors.