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

Purport of claim and appeal

1..

A. On May 10, 2005, Defendants C, C, D, and E entered into a contract for investment in the development of a stone collection place, such as 22,296 meters of forest land in Incheon, which is owned by the Construction. The Defendant paid C the sum of KRW 1.29 billion to C from July 11, 2005 to December 23, 2009, as construction was not performed as the investment in the stone collection site development project. Since Trade Union Co., Ltd failed to perform its obligations under the above investment contract, C, on January 5, 2007, upon having filed a lawsuit against the Defendant for the transfer of the above stone collection site and the right to permission for stone collection, and upon having lost the judgment against the Defendant on October 23, 2008 (Seoul High Court Decision 2007No3129, May 21, 2008). However, C and C were transferred to the Defendant on January 23, 2008.

On July 20, 2012, the court dismissed the Defendant’s primary claim and partly accepted the conjunctive claim, and C rendered a ruling that the Defendant shall pay KRW 980,000,000 paid from the Defendant after January 5, 2007 when the said investment contract was terminated (Seoul District Court 201No. 5208), and the Defendant and C appealed appealed, but the court rendered a ruling dismissing the appeal on May 16, 2013.

(Seoul High Court 2012Na67612). C has filed an appeal against the Seoul High Court's decision and has been pending in the final appeal.