Liability of a person who has had another person operate the project permitted or licensed in his name on another person's account;

A person who, in the light of the nature of the business, permits another person to operate the business in his own name with respect to the business which requires the permission or license of the State or a public organization, to operate the business in question, shall not be exempted from liability to a bona fide third person under the Commercial Act with respect to the business conducted by the other person, and shall be liable for damages inflicted on another person in the course of operating the business in accordance with this Article, even though the business is operated in the preceding year and there is no de facto interest in the name of the person concerned.

Article 715 of the Civil Act

Plaintiff 1 and two others

Defendant

Jinju support in the first instance, Daegu High Court Decision 57 civilian 236 delivered on September 4, 1957

Since there is a concern over risk to other persons due to the nature of the business, the person who grants permission or license to operate the business in his own name with respect to the business which requires permission or license from the State or a public organization to carry on the business for the guidance and supervision of the other person, even though the business is operated in the account of the other person and there is no de facto interest in the nominal owner, the nominal owner is obligated to supervise the business. Therefore, in the case of the business carried on by the other person, the nominal owner cannot be exempted from liability to the third person acting in good faith in accordance with the Commercial Act, and in case where the other person inflicts damage on other person in the course of operating the business, it is reasonable

Justices Go Jae-ho (Presiding Justice)