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

A. The Defendant is a housing reconstruction association that obtained authorization for establishment from the head of Dongdaemun-gu Seoul Metropolitan Government on August 20, 2002 for reconstruction on April 27, 2002 for the reconstruction of 21 units, such as 18 apartment buildings and 2 commercial buildings in the D apartment 2 complex, which was constructed on the ground of 38,026 square meters in Dongdaemun-gu Seoul Metropolitan Government.

The plaintiff is a commercial member who owned a commercial building in the reconstruction project district.

B. On August 19, 2004, the Defendant established a management and disposition plan (hereinafter “the first management and disposition plan”) by holding an extraordinary meeting on November 20, 2004 after obtaining authorization for the implementation of the project from the head of Dongdaemun-gu and following the public announcement of sale in lots and the procedures for application for parcelling-out, etc., and obtained authorization from the head of Dongdaemun-gu on January 7, 2005 from the head of the management and disposition plan.

The reconstruction work commenced on March 18, 2005 and completed on August 14, 2007.

C. Some of the Defendant’s members filed a lawsuit against the Defendant seeking confirmation of invalidity of the first management and disposal plan (Seoul Administrative Court 2007Guhap36374), and the Seoul Administrative Court rendered a judgment that the management and disposal plan was invalid on November 21, 2008 due to significant and objective apparent defects.

The appeal by the defendant association (Seoul High Court 2009Nu43) and the appeal by the Supreme Court (Supreme Court 2010Du4407) were all dismissed.

On January 15, 2012, the Defendant: (a) held an extraordinary general meeting on January 15, 2012; (b) re-established a management and disposition plan including commercial buildings (hereinafter “the second management and disposition plan”); and (c) obtained authorization from the head of Dongdaemun-gu on April 6, 2012 from the head of the said management

The Defendant held an extraordinary general meeting on February 22, 2013 to decide on the amendment of the management and disposal plan standards, etc., and obtained authorization on November 4, 2013 for the amendment of the above management and disposal plan, and received prior notification on February 27, 2014.

E. On April 1, 2014, the Defendant holds a board of directors meeting on April 1, 201 to hold two unsold apartments and real estate indicated in the separate sheet.