However, around August 2008, the Korea Railroad Corporation applied for approval to use the F Station for viewing, but it was rejected due to the reasons for non-construction of the underground parking lot, E agreed from the Korea Railroad Corporation to construct the F Station, which requires construction cost equivalent to KRW 10.3 billion at the expense of E, such as guaranteeing the right to use and benefit from parking lots, and reducing the rental deposit (hereinafter “instant parking lot”).

However, in fact, E did not have financial capability to complete the instant parking lot construction, such as the capital of KRW 50 million at the time and the rental deposit to be paid to the Korea Railroad Corporation due to continued business losses.

Nevertheless, the Defendant did not have the ability to raise capital for the instant parking lot construction cost in order to maintain E’s status as a rental business operator. Around that time, the Defendant entered into a contract for the instant parking lot construction contract with the Gyeyang Comprehensive Construction Co., Ltd. (hereinafter “Seoul Metropolitan Government Construction”) and the construction cost of approximately KRW 10.3 billion, but the construction cost, such as the progress payment, was entirely avoided and became at risk of discontinuance of the construction

In order to prepare construction cost around June 2009, the Defendant agreed to apply for a loan of KRW 5 billion from a national bank. In order to obtain a loan approval, the Defendant intended to submit a credit guarantee for the loan from the old branch of the Korea Credit Guarantee Fund to the National Bank. However, the Defendant failed to prepare funds for about 1 year for defective financial standing and approximately 5 years, and thus, the construction cost is to be paid to the Gyeyang Integrated Construction.