200 Single 5251147 Agreements

A Stock Company

Law Firm L&AD Partners

Attorney Lee Lee-young

1. B

2. C.

3. D;

November 10, 2020

November 24, 2020

1. The Defendants jointly and severally pay to the Plaintiff the amount of KRW 111,150,51 and the amount of KRW 12% per annum from September 30, 2020 to September 28, 2020 to Defendant B, Defendant C and D, respectively, to October 27, 2020, and 12% per annum from the following day to the date of full payment.

2. The costs of lawsuit are assessed against the Defendants.

3. Paragraph 1 can be provisionally executed.

It is as stated in paragraph (1) of this Article.

1. Basic facts

A. Defendant B Co., Ltd. (hereinafter referred to as “Defendant Company”) is a company that produces, distributes, sells, etc. local movies, and entered into a sales agreement with the Plaintiff. Defendant C was a representative director of the Defendant Company until April 26, 2018, and Defendant D was a director of the Defendant Company until February 11, 2016.

B. 1) On February 8, 2018, the Plaintiff entered into a sales license agreement with the Defendant Company (hereinafter referred to as “sales license agreement”) with the following terms (A: Defendant Company, and Plaintiff B).

Article 1 (Purpose of this Agreement) The purpose of this Agreement is to clarify rights and obligations between A and B in terms of the digital distribution, distribution, and settlement of the reading rights and obligations of B with respect to the digital distribution, distribution, and settlement of the reading rights and obligations of B under Article 2 (Subject Matters of Contract) on the condition that B shall pay the advance payment to B for the import royalties of contents and secure "P&A (at least 30 million won for advertising expenses, 30 million won) expenditure and 'diversity class (at least 5 or diversity film certification)' which have been promised in Article 2 (1).The scope of the printing rights and obligations of B are specified in Section 2 (Subject Matters of Contract).

3. Types of ticket : The exclusive right to purchase profits of Party A shall be settled on the basis of total sales at the following rates. Advance payment under Article 9 (Request and Settlement) 1. After entering into this Agreement, Party B shall pay Party A an advance payment of KRW 30,000,000 per day to Party A in return for acquisition of the right to purchase the right to purchase the right and shall be paid KRW 30,000,000 by February 9, 2018. Party A shall provide Party B with the documents specified in Article 5(1) before deposit of KRW 30,00,000 for each contract work. 2. If Party B fails to collect advance payment based on each contract work’s right to purchase the right to purchase the right to purchase the right, then Party A shall be entitled to return the balance of the advance payment within 30 months after the contract’s advance payment and the balance of the advance payment shall be determined within 30 months after the contract’s advance payment.

2) On March 29, 2018, the Plaintiff paid 100,000,000 additional advance payment to Defendant Company and “I” until March 30, 2018, and additionally paid 80,000,000 if M is to be a sole opening, and 50,000,000 if N is to be distributed in the form of Over-to-face class; and 70,000,000,000 if the number of the final visitors is more than 30,000,000,000 won (total advance payment amounting to KRW 250,00,000), and 10,000,000 (total advance payment amount to KRW 350,000,000) if it is more than 5,000,000,0000,000 won, together with the agreement to apply the remainder of the sales contract (hereinafter referred to as “the agreement”).

3) Defendant C and D jointly and severally guaranteed the Defendant Company’s obligations under the instant contract against the Plaintiff.

C. On February 9, 2018, the Plaintiff paid in advance to the Defendant Company KRW 30,000,000,000, and KRW 100,000 on March 3, 2018, and KRW 26,80,000 on April 26, 2018, respectively.

D. Meanwhile, the remainder after settling accounts as of September 30, 2020 under the instant contract is KRW 111,150,511.

[Ground of recognition] Unsatisfy, entry of Gap evidence 1 to 7 (including branch numbers), the purport of the whole pleadings

2. Determination as to the cause of action

According to the above facts, the Plaintiff paid the Defendant Company KRW 10,00,000 as advance payment, and KRW 100,000,000 on March 30, 2018, and KRW 80,000 on April 26, 2018 pursuant to the contract of this case, but the advance payment was not recovered on three months after the commencement of the service. As such, pursuant to Article 9 of the contract of this case, the Defendants are jointly and severally liable to pay the Defendants annual interest of KRW 111,150,51 on September 30, 202 and the remaining advance payment after being settled based on the amount of KRW 111,150,51 on September 30, 202, which is the settlement date, to the day of filing an application for alteration of the purport of the claim of this case and the cause of the claim of this case until the day of each of the parties’ respective litigation 20,000 per annum 27,200.

3. The defendants' assertion and judgment

A. 1) As to this, Defendant C retired from the Defendant Company on May 2, 2018, and Defendant C asserted that there was no fact that an individual guaranteed the Defendant Company’s debt. Thus, according to the foregoing evidence, Defendant C is recognized as a joint and several surety in the capacity of an individual rather than the representative director of the Defendant Company. Thus, this part of the allegation is rejected.

2) In addition, Defendant C alleged that Defendant D stolen its name with Defendant D’s children, and there is no evidence to acknowledge it. The following circumstances, i.e., the following circumstances acknowledged by the evidence revealed earlier, namely, that Defendant C was the representative director of the Defendant Company at the time of entering into the instant contract between Defendant D and its father, and that Defendant C affixed the corporate seal as the representative director.

In full view of the facts that the defendant C made a statement, the defendant C's assertion on this part is not accepted.

B. The Defendants asserted that the contents of the printing agreement cannot be applied since they were concluded on the premise that the Plaintiff and the Defendant Company agreed on the specific contents of the agreement. Accordingly, according to the aforementioned evidence, the Defendants agreed to proceed after a written agreement on the right to purchase an additional contract under Article 9(4) of the printing right agreement, and the remainder after the conclusion of the additional agreement is to be applied equally to the contents of the printing right agreement. Accordingly, this part of the Defendants’ assertion is also rejected. The Defendants asserted that the additional works can be supplied without compensation and settle the remainder of the advance payment. According to Article 9(2) of the printing right agreement, the Defendants asserted that the additional works will be imported and paid KRW 11,150,511, and thus, according to Article 9(2) of the printing right agreement, the Plaintiff may not accept the remaining portion of the advance payment by returning the balance as the method of collecting the advance payment or supplying it without compensation, and the Plaintiff may not accept the remaining portion of the advance payment.

4. Conclusion

Therefore, each claim against the Defendants against the Plaintiff is justified, and all of them are accepted, and it is so decided as per Disposition.

Judges Park Jae-young