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

A. On November 11, 2016, the Plaintiff concluded a subcontract with the Defendant for the supply and installation of equipment, such as cocopins, in relation to the production of heat exchange machines and the installation of kimchi factory facilities, which were ordered by the Incorporated Agricultural Company B (hereinafter “instant contract”) on November 11, 2016, the contract amount of KRW 33,000,000 (including value-added tax) and the construction period from November 11, 2015 to December 14, 2015 (hereinafter “instant contract”).

B. At the time of the conclusion of the instant contract, the Defendant paid damages for delay equivalent to 1/100 of the total contract amount per day when the construction is delayed. In the event of defects, the Defendant shall be liable for warranty for three years, and the Defendant shall unilaterally reverse the instant contract or terminate the contract, and shall pay 20% of the total contract amount as penalty in penalty.

(See Articles 12 and 14 of this Agreement). (C)

Accordingly, around November 2015, the Defendant concluded a guarantee insurance contract with Seoul Guarantee Insurance Co., Ltd. with regard to the contract bond under the instant contract, setting the amount of KRW 6,600,000, the insured as the purchase price of the insurance, the Plaintiff’s insurance period from November 11, 2015 to December 14, 2015, with regard to the warranty bond under the instant contract, and entered into a guarantee insurance contract with the Plaintiff, the insured as the purchase price of the insurance amount of KRW 3,300,000, and the insured from November 13, 2015 to November 12, 2017, respectively.

[Ground for Recognition: Facts without dispute, Gap evidence 1, Eul evidence 3-1, 2, Eul evidence 4-1, 2, Eul evidence 5-1, the purport of the whole pleadings]

2. The assertion and judgment

A. Each of the parties’ respective arguments (1) Although the Defendant agreed at the time of the instant contract to complete the installation of the cocolon, etc. by December 14, 2015, the Plaintiff failed to perform its contractual obligations under the instant contract, such as not delivering the cocolon by July 25, 2015, and supplying defective colonization.