1. The defendant is the defendant's executive member of the investment fund EXE II.

Facts of recognition

The plaintiffs are executive partners of investment associations established to invest in small and medium enterprises or venture businesses pursuant to the Support for Small and Medium Enterprise Establishment Act or the Act on Special Measures for the Promotion of Venture Businesses.

The defendant is the representative director of B Co., Ltd. (hereinafter referred to as “B”) for the purpose of research, development, manufacture and sale of medicines.

Upon entering into each of the instant new shares subscription contracts, Plaintiff SEL fund entered into a new shares subscription contract with the Defendant on June 19, 2015 (i.e., KRW 50,000 (=50,000 per share x KRW 40,000) to acquire 50,000 won of the convertible shares issued by the Defendant and B (hereinafter “instant new shares subscription contract”), and paid KRW 2 billion of the subscription price for new shares on June 29, 2015.

Plaintiff

On July 30, 2015, the Korean Investment Funds concluded each new shares subscription contract (hereinafter “instant new shares subscription contract”) with the Defendant to acquire KRW 25,000,000,000 each of the redeemable preferential shares issued by B and the Defendant (i.e., KRW 25,000 per share x KRW 40,000 per share) (hereinafter “instant new shares subscription contract”). On July 31, 2015, the Korea Investment Funds paid KRW 1 billion each of the new shares subscription price on July 31, 2015.

Plaintiff

On November 16, 2015, Plaintiff Korea Investment Fund claimed on November 26, 2015 that Plaintiff Korea Investment Fund should convert the entire amount of redemption priority shares into common shares on November 26, 2015, Plaintiff SELA Fund’s redemption priority shares were converted into 50,000 common shares, and each redemption priority shares owned by Plaintiff Korea Investment Fund was converted into 25,000 common shares.

On November 16, 2015, Plaintiff SELA Fund entered into each of the instant performance guarantee commitments with the Defendant and the Defendant (hereinafter “instant performance guarantee”) with respect to the instant performance guarantee agreement on June 19, 2015, with respect to the redemption conversion conversion priority agreement entered into between Plaintiff SELA Fund and Plaintiff SELA Fund.