A. On January 18, 2010, the Administrator of the Small and Medium Business Administration publicly announced an implementation plan for a new product development project on condition of purchase, which is a project to support tasks adopted by a technology demand center, such as large enterprises, public institutions, and the Government by clarifying their intent to purchase and by proposing the development of technology, with the Government’s subsidy necessary for technological development to small and medium enterprises and, if successful in technological development, is refunded

B. Around December 13, 2010, the Defendant entered into the New Products Development Project Agreement with the Korea Industrial Technology Evaluation Institute, a specialized institution, on the following terms and conditions (hereinafter “the instant agreement”) with the Korea Meteorological Administration, after presenting a purchaser’s intent to purchase and submitting a project plan, etc. for the task proposed to develop technology.

1) Details of a contract: The name of a new product development project under purchase condition. (2) The name of a project: C (e.g., luminous measuring devices for the decentralization real-time measurement; hereinafter referred to as “real-time monitoring device”).

(3) Period of technology development: from November 1, 2010 to October 31, 2012, 400 million won: Government contributions 300 million won; Defendant contributions 100 million won; and the Korea Evaluation Institute of Industrial Technology that has paid expenses for technology development projects shall pay to the Defendant KRW 300 million.

The defendant shall use the above money separately from other business funds for each item specified in the business plan, and shall not use it for any purpose other than that of technological development (Article 3 of the Convention) (Article 3). The defendant shall not use the royalties for any purpose other than that of technological development (hereinafter referred to as the "Guidelines for Operation").

(2) If the notice of the determination is given under the provisions of Article 23, 24, or 25 as the early completion of the project or as the result of the final evaluation of the project, the amount equivalent to 20% of the government contributions shall be paid to the Plaintiff and the details shall be subject to Article 35 of the Operating Guidelines and the Guidelines for the Management of Small and Medium Enterprise Development