2. The costs of appeal are assessed against the Defendants.

Purport of claim and appeal

1.

A. On September 5, 2012, the Plaintiff was awarded a subcontract for KRW 1,238,500,000 for the steel hold and steel scrap construction among the new construction works in Chungcheongnam-gun Seoul Special Metropolitan City.

B. On September 2012, the Plaintiff re-subcontracted the parts of the apartment, auxiliary building, and commercial building’s own windows, metal construction, and miscellaneous construction (hereinafter “instant construction”) among the subcontracted construction works to Defendant A, but the Plaintiff was not issued a advance payment guarantee, and the contractor’s name was required to be changed to Defendant B.

C. Accordingly, on February 4, 2013, the Plaintiff entered into a modified contract with Defendant B to re-subcontract the instant construction with the following content, and Defendant A jointly and severally guaranteed the obligation of Defendant B to the Plaintiff.

The construction period: From December 1, 2012 to December 18, 2013, the construction contract amount: KRW 83.5 million: In the event that the Defendants unilaterally waive their construction without the prior consent of the Plaintiff, the Defendants shall pay 10% of the construction contract amount to the Plaintiff as damages.

(Article 9(3) of the terms of the contract for construction project.

The Defendants performed the instant construction work by June 19, 2013, and did not obtain the Plaintiff’s consent, and completed the construction work at the construction site.

At the time of the discontinuance of construction work, the progress rate of the part that the Defendants performed in relation to the instant construction work was 28.265%.

E. From September 19, 2012 to May 27, 2013, the Plaintiff asserted that “the Plaintiff shall pay KRW 32,056,260,00 to the Defendants as construction cost and material cost, and KRW 3,412,40,00 as the monthly wage in December 7, 2012, the amount deposited on February 7, 2013 is merely KRW 3,412,40,00.” However, according to each of subparagraph 11-9 to 14, the Plaintiff shall deduct the Defendants from the Defendant’s wages in December 5, 200, the amount of KRW 1,587,60, which the Defendants shall pay to the Defendants, KRW 3,412,40,00, and KRW 3,412,40,00 to the Defendant, and the amount of KRW 1,58,60,00 to the Defendant.