1. The part of the judgment of the court of first instance against the defendant shall be revoked.

2. The plaintiff's claim as to the above cancellation part is dismissed.

1. Basic facts

A. The Plaintiff entered into an insurance contract for fidelity guarantee (hereinafter “instant fidelity guarantee insurance contract”) with the Defendant belonging to a rice processing complex of a cooperative, which provides the insurance period from November 15, 2013 to November 15, 2014 (hereinafter “instant fidelity guarantee insurance contract”) with C cooperative (hereinafter “C cooperative”).

B. On April 20, 2016, a cooperative sought reimbursement of KRW 275,244,000 from March 2014 to September 22, 2014 to the Plaintiff on the ground that “the Defendant embezzleds KRW 3,650,000 for the sales proceeds of the area from D during the period from March 2, 2014 to September 22, 2014, the cooperative ordered the Defendant to compensate KRW 23,650,000, but the Defendant did not compensate for KRW 3,650,000 and did not compensate for the remainder KRW 20,000.” On May 4, 2016, the Plaintiff paid KRW 20,000 insurance proceeds to the cooperative.

[Ground of recognition] Facts without dispute, entry of Gap evidence 1 to 4, purport of the whole pleadings

2. The Plaintiff asserts that, inasmuch as CF paid KRW 20,000,000 insurance money to CF for an insured incident caused by the Defendant’s embezzlement, CF would have acquired the claim for damages of KRW 20,000,000, which it had against the Defendant, and that, according to the insurer’s subrogation, CF would have sought payment of the said money to the Defendant.

The plaintiff's claim of this case requires that the payment of insurance money to the plaintiff C shall be lawful.

In full view of the aforementioned evidence, Gap evidence Nos. 5, 6, and Eul evidence Nos. 1 and the purport of the argument as a whole, the cooperative imposed upon the defendant et al. on the embezzlement of sales proceeds in the area and the shortage and concealment of grain assets, and judged that the defendant et al. should be paid KRW 20,000 as compensation for embezzlement of sales proceeds in the area and compensation for shortage and concealment of grain, and the cooperative received KRW 3,650,000 from the defendant as compensation for embezzlement of sales proceeds in the area.