A. On May 13, 2013, the Defendant entered into a subcontract for construction contract between the Defendant and the lender machinery and equipment corporation with the contract amount of KRW 225,50,000 (including additional taxes) and the contract period from May 13, 2013 to October 31, 2013, of the new construction works in Sung-Nam C, which the Defendant received from the Association of Religious Organizations B (hereinafter “instant construction works”).

B. On November 2013, the Plaintiff entered into a contract with a lender for the supply pumps, etc. to be used at the construction site of the instant case with the size and specifications, etc. (hereinafter “instant contract”) and delivered the water pumps, etc. equivalent to KRW 22 million at the construction site of the instant case as requested by the lender until December 11, 2013, as agreed by the lender.

C. On February 14, 2014, the Plaintiff and the lender’s machinery and equipment: (a) indicated the subcontract price as KRW 22 million on the part executed by the contractor according to the subcontract agreement between the contractor and the subcontractor; and (b) agreed to directly pay the subcontractor the subcontract price corresponding to the portion executed by the contractor according to the subcontract agreement between the contractor and the subcontractor (hereinafter “instant direct payment agreement”).

2) If the total amount of assets of a small and medium enterprise engaged in a construction business is less than 50 million won, the lender’s machinery and equipment has an average sales or annual sales below 100 billion won (see Article 2(1)1 of the Framework Act on Small and Medium Enterprises, Article 3(1)1 of the Enforcement Decree of the Framework Act on Small and Medium Enterprises, and attached Table 1 of the Enforcement Decree of the Framework Act on Small and Medium Enterprises), the annual sales indicated in the income statement for the year 2012 are KRW 8.686 billion, and the Plaintiff operates the manufacturing business, etc.