All
| TITLE | Supreme Court Decision 2017Da249929 Decided December 21, 2023 【Damages (Etc.)】 [full Text] |
|---|---|
| Summary | |
| 【Main Issues and Holdings】 [1] Meaning and scope of “financial investment instruments” stipulated in the former Financial Investment Services and Capital Markets Act [2] Standards for determining whether a certain act constitutes unfair trading prohibited under Article 178 of the former Financial Investment Services and Capital Markets Act [3] Whether a person who committed unfair trading practices prohibited under Article 178 of the former Financial Investment Services and Capital Markets Act is liable for damages pursuant to Article 179(1) of the former Financial Investment Services and Capital Markets Act not only in cases where investors who traded a financial investment instrument due to unfair trading practices incurred losses but also in cases where, irrespective of unfair trading practices, investors who traded “the relevant financial investment instrument related to unfair trading practices” incurred losses from unfair trading practices in accordance with the structure and content of the relevant financial investment instrument (affirmative), and standards for determining whether a person who committed unfair trading practices is liable for damages to investors of a financial investment instrument in accordance with Article 179(1) of the former Financial Investment Services and Capital Markets Act [4] Regarding a financial investment instrument designed to be contingent on the price of underlying asset at a given point of time for the exercise of rights, fulfillment of condition, or payment of money, whether such an act as influencing the exercise of rights or fulfillment of condition by resorting to any means recognized as unfair in light of generally accepted ideas of society constitutes unfair trading practices in violation of Article 178(1)1 of the former Financial Investment Services and Capital Markets Act (affirmative), and in this case, whether a person who committed unfair trading practices is liable for damages to investors of the financial investment instrument who incurred losses due to unfair trading practices pursuant to Article 179(1) of the former Financial Investment Services and Capital Markets Act (affirmative) Whether the aforesaid person who committed unfair trading practices includes not only issuers and sellers who engaged in the trading of financial investment instruments but also a person who traded another financial investment instrument associated with the issuer’s financial investment instrument and thereby has an interest contrary to that of investors in terms of the exercise of rights or fulfillment of condition (affirmative) [5] Method of determining whether there exists a considerable causal relationship between wrongful conduct and losses as a requirement for holding a person liable for damage in tort In a case where another person has incurred losses by the act of fixing or changing the price of underlying assets of a financial investment instrument, whether a liability to make compensation for damages arising therefrom under Article 750 of the Civil Act is established (affirmative) | |
