1. The defendant's appeal is dismissed.

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

Purport of claim and appeal

1..

Basic Facts

On September 11, 2015, the Plaintiff and the Defendant invested KRW 30 million in relation to the redevelopment project promoted in Gangnam-gu Seoul, Seoul, and entered into an anonymous association agreement under which the Defendant would distribute profits accrued from its operation for two years to the Plaintiff according to the Plaintiff’s share ratio (hereinafter “instant anonymous association agreement”). At that time, the Plaintiff and the Defendant paid KRW 30 million in investment.

Since then, a public prosecution was instituted on November 6, 2015 on the grounds that the defendant was established and worked as representative director without necessary authorization or permission, and that the return on investment was deceiving, etc., for committing a crime such as fraud, violation of the Financial Investment Services and Capital Markets Act, violation of the Financial Investment Services and Capital Markets Act, and violation of the Act on Regulation of Conducting Fund-Raising Business without Permission, etc., and the judgment of conviction for eight years (Seoul Southern District Court Decision 2015Da4570, 4570, 464, 4927, 5342, Decided December 3, 2018) is pending in the appellate court (Seoul Southern District Court 2018No2462, Seoul Southern District Court).

The plaintiff demanded the defendant to return the full amount of investment through the complaint of this case, but the defendant is still not obligated to return it.

[Reasons for Recognition] In the absence of dispute, each of the parties may terminate the undisclosed association agreement at any time in extenuating circumstances, regardless of whether the term of the undisclosed association agreement exists or not, in the case of an anonymous association, where there are unavoidable circumstances, regardless of whether the term of the undisclosed association agreement exists.

In extenuating circumstances, such as where it is impossible to expect smooth operation of the partnership affairs due to the destruction of trust relationship between the parties to the partnership, etc., a partner may file a petition for dissolution of the partnership (see, e.g., Supreme Court Decision 95Da4957, May 30, 1997). The relationship between an anonymous association that entrusts the management of investment based on the trust that a business operator performs a business with the fiduciary duty upon fulfilling