The costs of appeal are assessed against the plaintiffs.

1. The Act on Contracts to which the State is a Party in the method of adjusting the contract amount according to price fluctuation in a public contract (hereinafter “State Contract Act”) was enacted for the purpose of facilitating the performance of contractual affairs by prescribing fundamental matters concerning contracts to which the State is a party or contracts to which a public enterprise subject to the Act on the Management of Public Institutions is a party (hereinafter “public contracts”) (Article 1). The basic provisions regarding the basic contents of public contracts are established to ensure the fair and efficient implementation of public contracts.

Article 19 of the State Contracts Act provides for the adjustment of the contract amount to the extent that it is necessary to adjust the contract amount due to changes in price, etc. after concluding the contract for a construction project, manufacturing contract, service contract, or any other contract that imposes a burden on the National Treasury, as prescribed by Presidential Decree.

Article 64 of the Enforcement Decree of the Act on Contracts to Which the State is a Party upon delegation (hereinafter “Enforcement Decree of the Act on Contracts to Which the State is a Party”) provides that the head of each central government agency or the public official in charge of contracts shall stipulate that the contract amount shall be adjusted at the time the rate of adjustment of items or the index adjustment rate calculated as prescribed by Ordinance of the Ministry of Strategy and Finance is increased or decreased by at least 3/100 as of the date of tender after the lapse of 90 days from the date of conclusion of the above contract, and the rate of adjustment of items or the index adjustment rate calculated as prescribed by Ordinance of the Ministry of Strategy and Finance is increased or decreased by at least 3/100 (paragraph (1)), and that the contract amount shall

(2) Paragraph (2). Article 64 of the Enforcement Decree of the State Contracts Act provides for the item adjustment rate as of the original date of contract conclusion.