1. All appeals by the Defendants are dismissed.

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

3. Text of the judgment of the court of first instance;

1. Facts of recognition;

A. Defendant B Co., Ltd. (hereinafter “Defendant Company”) is a corporation that runs the manufacturing and selling business of micro-organism feed additives, and Defendant C is the representative director of the above company.

B. The Plaintiff’s KRW 30 million on June 5, 2015 to Defendant C, the same year

7.3.10 million won, including a sum of KRW 40 million, was invested.

C. Meanwhile, Defendant C was indicted for fraud of the following contents and was sentenced to imprisonment for four years and six months in the case of Busan District Court 2016 High Court 2016 High High Court 322 on November 11, 2016, and appealed with Busan High Court 2016No756 and is still pending in the appellate trial.

On March 19, 2015, the Defendant displayed the cals of the said company to the victim D at the Defendant Company’s office, which read, “The Defendant Company is a company recognized by the Financial Supervisory Commission, the Fair Trade Commission, and the National Tax Service, and is engaged in film production investment, the distribution of multimond, the manufacture and sale of micro-organism feed additives, the procurement of military supplies, high-tech advertising and advertising agency, and the manufacturing and business of environmental engineering. When investing in the Defendant Company, the Defendant Company would pay 5% interest of the principal by generating profits from investing in E, F, G, H credit business, etc. as its investment funds, and repay the principal after the ten-day grace period if the principal is to be repaid.”

However, the defendant company did not obtain authorization or permission from the Financial Supervisory Commission, and the above company did not carry on business such as film production investment, multimond distribution, manufacture and sale of micro-organism feed additives.

In addition, the defendant did not have any intent or ability to pay interest and principal by generating profits from the investment funds received from the victim, such as purchasing real estate in the name of the defendant or providing interest, employee's allowances, incentives, etc. to other investors.

Nevertheless, the defendant deceivings the victim as above and belongs to it from the victim.