A. The Plaintiff is a company established for the purpose of construction works, such as civil engineering and construction, and the Defendant is a reconstruction association established to promote a housing reconstruction improvement project with a scale of 380 households from one lot of land outside Gangseo-gu Seoul Metropolitan Government and 144.

B. On August 21, 2010, the Defendant publicly announced the tender of the instant project. On September 17, 2010, the Plaintiff paid a bid bond of KRW 2 billion (hereinafter “instant deposit”) to the Defendant on September 17, 2010 according to the said public announcement of tender, and participated in the tender on the condition of KRW 4,263,00 per three square meters per unit cost of construction. On September 30, 2010, the Defendant: (a) held an extraordinary general meeting and decided the Plaintiff as the contractor of the instant project.

C. On November 11, 2011, the Plaintiff submitted a provisional contract for construction of the instant project to the Defendant, and the Defendant demanded the Plaintiff to adjust the terms and conditions of the instant contract on the ground that the construction cost is higher than the construction cost in the neighboring reconstruction area. On March 26, 2012, the Defendant did not make the adjustment, and the said provisional contract was rejected at the ordinary meeting of the Defendant at the ordinary meeting of the general meeting of shareholders.

On May 23, 2012 and the 29th day of the same month, the Plaintiff presented a proposal to reduce the construction cost of 3,899,000 won per 3m3m2 to the Defendant at the Defendant’s request. However, the Defendant demanded the Plaintiff to reduce the construction cost of 3.3m2 per 3m2 to KRW 3,70,000, again. Upon refusal of the request, the Plaintiff held an extraordinary general meeting on June 2, 2012 and made a resolution to revoke the selection of the contractor against the Plaintiff, and then made a resolution to ratification the said revocation at the extraordinary general meeting on September 16, 2012.

E. Meanwhile, among the provisions on the Defendant’s guidelines for participation in bidding for the selection of a construction project (hereinafter “instant bidding regulations”), the contents related to the instant case are as follows.

[Article 20] Preparation of a contract and conclusion of a contract (1) "successful bidder" shall be in accordance with the conditions for project participation presented by the agency awarding the contract.