1. Defendant B’s shares of KRW 10,00,00 in registered common shares issued by Defendant C, which are issued in the name of Defendant B.

1. Facts of recognition;

A. On August 12, 2013, the Plaintiff transferred to Defendant B the purchase price of KRW 40 million (hereinafter “instant shares”) shares (registered common shares of KRW 10,000 in face value) issued by Defendant C (hereinafter “Defendant Company”) (hereinafter “instant shares”).

B. Defendant B completed the transfer procedure for the instant shares, but did not pay the purchase price to the Plaintiff on the date of the contract.

C. The Plaintiff notified Defendant B prior to the filing of the instant lawsuit to pay the purchase price, and expressed his/her intent to cancel the instant stock transfer contract by serving a duplicate of the complaint of the instant case.

On the other hand, the share certificates of this case were not issued.

[Ground of recognition] Facts without dispute, Gap evidence Nos. 1 and 2, the purport of the whole pleadings

2. Determination as to the cause of action

A. According to the above facts of recognition, the share transfer contract of this case was lawfully rescinded by the delivery of a copy of the complaint of this case containing the Plaintiff’s declaration of intent of rescission due to Defendant B’s nonperformance of obligation.

Therefore, since the shareholder's right of the instant shares was restored to the Plaintiff, as long as Defendant B contests this, the Plaintiff has a benefit to seek confirmation of the shareholder's right of the instant shares, and the Defendant Company is obligated to implement the transfer procedure of the shares to the Plaintiff

B. As to this, the Defendants asserted that “The Plaintiff’s exercise of the Plaintiff’s right to rescission is unlawful, since the Plaintiff did not give a peremptory notice within a reasonable period of time.”

In the termination of a contract based on the delay of performance, the peremptory notice of performance, which is a prerequisite for the delay of performance, does not necessarily have to be given by specifying a certain period in advance, and there occurs the right of rescission upon the lapse of a reasonable period from the highest time (see Supreme Court Decisions 94Da35930, Nov. 25, 1994; 89Meu1410, Mar. 27, 1990).