[1] The standard for determining "inevitable reasons" where a partnership with the term of existence prescribed in Article 716 (2) of the Civil Code can withdraw from its association

[2] The case denying the withdrawal from the Securities Market Stabilization Fund due to subjective circumstances, such as aggravation of the financial standing of the member company

[1] In a case where the duration of a union is fixed, a union member can, in principle, withdraw from the union only when there is an inevitable reason under the provision of Article 716(2) of the Civil Code. Whether a union member's existence constitutes an inevitable reason should be determined by comprehensively considering not only subjective reasons for a union member's personal interests and individual interests, but also the nature of the union as a group and the overall interests of the union member.

[2] The case affirming the judgment below holding that in light of the nature, purpose of establishment, duties, etc. as a public interest organization of the securities market stabilization fund established for the purpose of stabilizing the securities market, the company which is a member of the securities market stabilization fund cannot be viewed as an inevitable reason to withdraw from the securities market stabilization fund due to the subjective circumstance, such as aggravation of financial standing

[1] Article 716 (2) of the Civil Act / [2] Article 716 (2) of the Civil Act

Sam Investment Finance Co., Ltd. (Attorney Choi Young-chul, Counsel for the defendant-appellant)

Securities Market Stabilization Fund

Seoul High Court Decision 95Na42296 delivered on May 10, 1996

The appeal is dismissed. The costs of appeal are assessed against the plaintiff.

The Plaintiff’s attorney’s ground of appeal is examined.

According to the reasoning of the judgment below, the court below held that, in the case of a cooperative with the term of existence fixed, a member may not withdraw from the fund in principle under Article 716 (2) of the Civil Act, and may withdraw from the fund exceptionally only if there are inevitable reasons, and whether it constitutes such inevitable reasons shall be determined by comprehensively taking into account not only subjective reasons for the members' personal interests, individual interests of the members, but also the nature and overall interests of the members of the cooperative as an organization. In light of the nature and purpose of establishment as a public interest organization of the defendant fund established for the purpose of stabilizing the securities market and its contents of business, etc., the mere subjective reasons such as the aggravation of the financial situation of the defendant fund's members cannot be deemed to constitute an inevitable reason that can withdraw from the fund. In light of the provisions of related Acts and subordinate statutes and records, the judgment of the court below is just and it is not erroneous in the misapprehension of legal principles as to voluntary withdrawal of members, as otherwise alleged in the ground for appeal

Therefore, we cannot accept all the allegation in the grounds of appeal premised on the illegality of the above determination by the court below.

Therefore, the appeal is dismissed and all costs of appeal are assessed against the losing party. It is so decided as per Disposition by the assent of all participating Justices on the bench.

Justices Chocheon-sung (Presiding Justice)