1. The defendant's appeal is dismissed.

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

Purport of claim and appeal

1..

1. Facts of recognition;

A. On January 3, 2012, the Plaintiff entered into a contract with the Defendant, who is engaged in the business of removing scrap metal in the name of “D,” under which the Plaintiff would purchase all scrap metal and skin lines arising from the project of removing buildings and equipment located in Ulsan-gu C Co., Ltd. (hereinafter “instant removal project”) and would pay KRW 2 billion as advance payment (hereinafter “instant sales contract”), and the remainder of the sales price was settled under mutual agreement.

B. During the process of the instant removal project, scrap metal and skins exceeded KRW 2 billion were generated, and the Plaintiff paid KRW 5,923,600,000 to the Defendant as advance payment from January 5, 2012 to December 5, 2013.

However, from May 31, 2012 to December 31, 2013, the Defendant discontinued its supply after supplying the Plaintiff with scrap iron and skins equivalent to KRW 4,307,143,394 in total.

C. On July 28, 2016, the Plaintiff sent to the Defendant a content-certified mail to the effect that the sales contract will be terminated on the grounds of the breach of the obligation to supply scrap iron and wire under the instant sales contract, which was served on the following day.

[Ground of recognition] Facts without dispute, Gap's evidence 1 to 8, Gap's evidence 9-1 to 4, the purport of the whole pleadings

2. Determination

(a) an advance in a decision on the cause of the claim means the money paid in advance as the price for the goods to be supplied in the future;

(See Supreme Court Decision 2014Da68303 Decided September 10, 2015). Meanwhile, a contract for the supply of recyclable materials, such as scrap metal, gives and receives advance payment depending on the stable securing of scrap metal and the market conditions of recycled materials. However, a transaction takes place by means of post-payment of advance payment in accordance with the market price by measuring the weight, etc. of scrap metal actually supplied after the completion of the work for securing scrap metal.

The above legal principles and the advanced payment practices in the scrap metal transactions, and the instant case.