1. The plaintiff's appeal is dismissed.

2. The costs of appeal shall be borne by the Plaintiff.

Purport of claim and appeal

Judgment of the first instance.

1. Basic facts

A. The Plaintiff is a person who engages in wholesale and retail business of publications, such as a monthly publication, reference, and short text, with the trade name of “C,” and the Defendant is a person who engages in retail business of publications with the trade name of “E” in “E” in the following cities.

B. On October 20, 2007, the Plaintiff and the Defendant entered into a regional total sales contract with the Plaintiff to supply publications to Defendant E (hereinafter “instant contract”).

The main contents of the instant contract are as follows.

Article 1 (Purpose) In order to expand the dissemination of publications published by Gap (Plaintiffs) (hereinafter referred to as "Gain"), Gap (Defendants) shall perform as well as smooth performance of duties, and promote mutual benefits, by requiring Eul (Defendants to do so) to do so on behalf of others.

Article 2 (Duties) A shall not delegate any right of sale arising from sale or business agency to any other person than B, and B shall have the following obligations:

5.B shall make every effort to manage regional and book boards in order to achieve the sales objectives assigned by A, and shall not return more than 30 per cent of the total delivery volume at the time of returning annual final accounts.

Article 4 (Entrusted Works Management) B shall perform the duties of a manager in the management of publications entrusted by A, and the unlisted publications shall not be damaged when returning them to A, and Eul shall bear losses incurred in excess of 30 percent of the total delivery quantity, and Eul shall be responsible for the storage and management of the consigned publications.

Article 6 (Payment and Management of Sales Price)

1. A shall supply Party B’s consigned publications at a fixed price (70 per month, 60-65 per cent).

(Provided, That in special cases the ex-factory price may be excluded)

2. B shall settle accounts for sales proceeds of the publications entrusted by A at the end of each month;

3. Division B of advance payment shall be included in the settlement of sales proceeds; and

4. A’s publications shall be classified into three categories: monthly, simple, and reference, and shall be settled and traded at the last day of each month.