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

Purport of claim and appeal

1...

A. A. Around February 6, 2002, the Defendant obtained the approval of the business plan that constructs 365 units of I apartment houses, which are public construction housing units, on the 17,703 square meters of Mapo-si and Mapo-si pursuant to Article 33 of the former Housing Construction Promotion Act (amended by Act No. 6655 of Feb. 4, 2002) and Article 32 of the Enforcement Decree of the same Act (amended by Presidential Decree No. 17793 of Dec. 5, 2002), and made a public announcement on the invitation of occupants on June 14, 2002, stating the period of sale for sale in lots (the sale after five years of the mandatory rental period) and the criteria for calculating pre-sale conversion price.

B. The Plaintiffs leased each apartment building listed in the separate sheet No. 1 (hereinafter “each apartment of this case”) from the Defendant as indicated in the separate sheet No. 2, and entered into a lease agreement with the following terms (hereinafter “instant lease agreement”). As the said lease agreement has been renewed several times thereafter, the final lease deposit was KRW 61,420,000, respectively without any monthly rent, and the Plaintiffs paid all of them to the Defendant.

On the other hand, on May 26, 2003, the defendant completed the registration of preservation of ownership of each apartment of this case.

Article 5 (Change in Terms and Conditions of Lease, etc.) A (referring to the leased defendant; hereinafter the same shall apply) and B (referring to the plaintiffs who are lessees; hereinafter the same shall apply) may adjust the rental deposit, rent, management fee or rent and the amount of payment for the rent in any of the following cases:

Provided, That the adjustment of rental deposits and rents shall not violate the provisions prescribed by the Rental Housing Act and the Housing Lease Protection Act.

1. When there are changes in prices or other economic conditions;

2. Where it is necessary to adjust terms and conditions of lease among housing leased by Party A, or between rental housing in a neighboring similar area;

3. When there is a remarkable change in the value of a rental house, incidental facilities and site, matters other than those prescribed in Articles 1 through 13 and matters A and B shall be necessary;