All appeals are dismissed.

Costs of appeal shall be borne by each party.

The grounds of appeal are examined.

1. Where a financial investment business entity makes an investment recommendation against an ordinary investor, it shall explain the content of the financial investment instrument, the risks associated with the investment, and other matters prescribed by Presidential Decree so that the ordinary investor can understand such information. The financial investment business entity shall not make a false or distorted explanation or omit any material fact that may have a significant impact on the investor’s reasonable judgment on investment or the value of the pertinent financial investment instrument (hereinafter “Capital Markets Act”).

Article 47(1) and (3) of the Act. In such cases, whether a financial investment business entity shall provide an explanation to an investor should be determined by comprehensively taking into account the characteristics and risk level of the relevant financial investment instrument, investor’s investment experience and ability, etc.

(See Supreme Court Decision 2008Da52369 Decided November 11, 2010, etc.). The lower court, based on its adopted evidence, acknowledged the facts as indicated in its reasoning, and determined that the Defendant failed to explain to the Plaintiff when recommending the Plaintiff to invest in the bonds with warrants issued by Daewoo Motor Sales Co., Ltd. (hereinafter “Treatment Motor Vehicle Sales”) and the Nam Mine Construction Co., Ltd. (hereinafter “instant company bonds”).

Examining the aforementioned legal principles and records, the lower court did not err by exceeding the bounds of the principle of free evaluation of evidence against logical and empirical rules, or by failing to exhaust all necessary deliberations, contrary to what is alleged in the grounds of

2. Judgment on the Plaintiff’s grounds of appeal

A. A financial investment business entity shall grasp information about the investment purpose, status of property, experience in investment, etc. of ordinary investors before recommending an ordinary investor to make an investment, and shall make an investment recommendation to ordinary investors.