A. On September 20, 2014, the Plaintiff was supplied with scrap metal from the Defendant. The supply price was calculated by deducting the amount equivalent to the scrap metal that the Plaintiff first paid to the Defendant in advance and received from the advance payment. The contractual unit price is KRW 300 per 1 km (per 1 km) and the contractual unit price was determined as from October 1, 2014 to September 30, 2016 and paid KRW 1 billion to the Defendant as advance payment pursuant to the said scrap metal supply contract.

B. On April 8, 2016, the Plaintiff calculated KRW 766,057,530,000, which was the advance payment of KRW 1 billion with the Defendant as of March 31, 2016, less the supply price for scrap metal supplied during the said period, as advance payment, and changed the contractual unit price into KRW 180,000 per 1 kilogram (per 1km). On the other hand, separately from the above contract for the supply of scrap metal, the Plaintiff determined KRW 250,000 as of May 31, 2016 and lent it to the Defendant.

C. The Defendant supplied scrap metal to a certain extent during the period from April 4, 2016 to August 31, 2016, but suspended the supply of scrap metal thereafter. The Plaintiff filed the instant lawsuit with the purport of requesting return of the remainder advance payment on November 18, 2016. The Defendant supplied a small number of scrap metal from March 31, 2017 to April 20, 2017 during the lawsuit.

Meanwhile, from April 4, 2016 to April 20, 2017, the scrap metal supplied by the Defendant to the Plaintiff is KRW 354,486,730 in total, and most of them were supplied prior to the filing of the instant lawsuit.

[Ground of recognition] The descriptions of Gap evidence Nos. 1, 2, Eul evidence Nos. 2 and the purport of the whole pleadings

2. According to the above facts and the evidence as seen earlier, the Defendant’s discontinuance of the supply of scrap metal for about seven months from September 2016, and the contract between the Plaintiff and the Defendant for the supply of scrap metal was lawfully terminated. Thus, according to Article 7(5) of the Agreement on September 20, 2014 (Evidence A-1-1), one of the parties to the contract is one of the grounds for termination of the contract.