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

2. The plaintiffs' claims against the above revocation portion are all made.

1. Basic facts

A. The Defendant is the promotion chairperson of the Promotion Committee for the Establishment of the Regional Housing Association (hereinafter “instant Promotion Committee”) to promote the project for the construction of apartment lots of the regional housing association (hereinafter “instant project”) with a site area of 28,403 square meters in Songpa-gu Seoul Metropolitan Government D Day.

B. On August 8, 2015, Plaintiff A entered into a contract to join the E Regional Housing Association (tentative name) with C (Defendant) of the Promotion Committee of the Regional Housing Association, and paid KRW 40 million and KRW 25 million to H Co., Ltd., which is the asset management trustee of the instant Promotion Committee.

Plaintiff

B entered into a subscription agreement with the chairperson (Defendant) of the Promotion Committee of the Regional Housing Association (tentative name) on September 3, 2015, and paid KRW 20 million and KRW 12.5 million to H, Inc., a company entrusted with asset management of the Promotion Committee of this case, which is the asset management of the Promotion Committee of this case.

(hereinafter referred to as “each of the instant subscription agreements” is included in the Plaintiffs’ respective contracts.

At the end of each subscription contract of this case, the term “the full amount of the down payment, including business promotion expenses, shall be refunded by the end of June 2016 when the construction deliberation is not completed.”

hereinafter referred to as "the refund agreement of this case"

(D) However, the instant promotion committee failed to complete the construction deliberation by the end of June, 2016. The Plaintiffs terminated each of the instant subscription agreements on July 21, 2016, and applied for the refund of down payment and business promotion expenses to the instant promotion committee. The instant promotion committee returned each of the instant down payment to the Plaintiffs on August 24, 2016 by account transfer by the I stock company, which is an asset management trustee, by means of account transfer. [Grounds for recognition: lack of dispute, each of the entries in subparagraphs A through 3, and 6 (including each number), and the purport of the entire pleadings, as a whole.

2. The parties' assertion

A. The defendant 1 concealed the fact that the promotion committee of this case has no capacity to do so, and deceives the plaintiffs to acquire business promotion expenses.