1. The conjunctive claim portion among the instant lawsuit shall be dismissed.

2. The plaintiff's main claim is dismissed.

3...

1. The plaintiff's assertion

A. From January 201, 201 to December 2, 2015, the sales amount of KRW 604,553,891 of the Company C (hereinafter “instant company”) was KRW 206,907,30 during the said period, and the difference was KRW 397,646,561. Since the Defendant, a director, committed an illegal act of embezzlement of the said difference, the Defendant is obligated to compensate the Plaintiff, who owns 43.3% of the shares of the instant company, for damages equivalent to the said share out of the said damages, KRW 172,30,00,00 and delayed damages.

(b) Preliminary Claim A.

As indicated in Paragraph (1), the Defendant caused damages to the company by embezzlement of the company’s funds. The Plaintiff, a shareholder who holds no less than 1/100 shares of the total issued and outstanding shares, may file a shareholder representative lawsuit on behalf of the company of this case pursuant to Article 403 of the Commercial Act. As such, the Defendant is obliged to compensate the company of this case for the damages incurred by delay, as the explicit partial claim for the said damages.

2. Determination

A. 1) In a case where a shareholder of a stock company directly sustains damages due to a director's bad faith or gross negligence, he/she may claim damages against the director pursuant to Article 401 of the Commercial Act. However, due to the reduction of company's property by embezzlement of the company's property, indirect damages such as losses caused by the company's economic interests are not included in the concept of damages under Article 401 (1) of the Commercial Act, and thus, he/she cannot claim damages pursuant to the above provision (see, e.g., Supreme Court Decision 2003Da29661, Oct. 24, 2003).