1. Of the judgment of the court of first instance, the part against the defendant against the plaintiffs shall be revoked, and the revocation part shall be revoked.

1. Basic facts

A. The Defendant is a company established for the purpose of investment trading business, investment brokerage business, collective investment business, investment advisory business, trust business, etc. under the Financial Investment Services and Capital Markets Act (hereinafter “Capital Markets Act”).

O AC Co., Ltd. (hereinafter referred to as the "P") around June 1999 through changes in mission several times thereafter.

(3) On March 7, 2016, the Defendant’s vice-branch office had been working as a contracting vice-subsidiary from March 7, 2016. The Defendant’s vice-branch office had been in charge of overall investment consultation and management of financial instruments, such as stocks, bonds, derivatives, funds, etc.

B. On May 2014, theO was pressured to voluntary retirement in P, and began to attract investments with promising to make high profits. After entering into a contracting deputy head at the Defendant’s vice-dong branch, it concluded that, “I himself/herself is a fund manager that manages only VIP customers at the Defendant’s vice-dong branch and manages the funds mainly by large-sum investors. Since ordinary investors are difficult to make profits, he/she must participate in the large-sum investors group that the Defendant manages. Since it is impossible to participate in the large-sum investors group, many people are unable to participate in money, and thus, should participate after being transferred to the bank account in the name of I, etc., the principal is guaranteed for the period of operation for 30 days or longer, and 5-40% conclusive profits can be obtained.”

C. However, in fact, since around June 2014, the O promised to guarantee a high rate of return as seen above and operated an investment by soliciting and managing investment money mainly among the people, such as a high-income ties, etc., and as a result of frequent stock transaction, loss of principal due to a drop in stock price and frequent loss, the O continued to attract investors, thereby converting a considerable portion of the invested money into the principal and profit-making amount promised to the existing investors, and the foregoing is the so-called “profecing.”