2. The costs of lawsuit shall be borne by the Plaintiff.

A. The Defendant is a regional housing association that obtained the authorization of establishment on April 7, 2016 in order to promote a housing construction project under the Housing Act from Ulsan Jung-gu D.

B. On April 8, 2016, the Plaintiff entered into a contract with the Defendant as a member (hereinafter “instant contract”) and accordingly, paid to the Defendant the sum of KRW 40 million and administrative service charges of KRW 13 million from April 8, 2016 to September 5, 2016.

C. On December 15, 2018, the Plaintiff received the same notice as indicated in the attached Form (hereinafter “instant notice”) from the Defendant, as the title “Guidance (Guidance)” (Guidance) from the Defendant.

B

D. The relevant provisions of the Defendant’s rules (hereinafter “instant rules”) are as follows.

Article 12 (Withdrawal, Disqualification, or Expulsion of Members) (1) No member may withdraw from a cooperative at his/her discretion.

Provided, That when intending to withdraw a cooperative member due to unavoidable reasons, it shall be notified in writing to the head of the cooperative 15 days prior to the withdrawal, and the head of the cooperative shall determine whether to withdraw by resolution at a general meeting or a council of representatives

(2) A person who is not qualified as a partner under relevant Acts and subordinate statutes and this Code shall automatically lose his/her eligibility as a partner.

(3) Where any member causes damage to a cooperative because he/she fails to perform his/her duties as a member, such as cases falling under any of the following subparagraphs, he/she may be expelled according to a resolution of the board

In such cases, an opportunity to vindicate shall be given to the relevant member before expulsion, but where the member fails to comply with such opportunity even though he/she has been given such opportunity, it shall be deemed that

1. Where charges, etc. have not been paid on at least two consecutive occasions by the designated date;

2. Where a cooperative has committed an act in violation of the objectives of the cooperative and thereby has caused enormous damage to the promotion of its business.