A. On December 27, 2011, the Plaintiff entered into a contract for construction works with the Jung-gu Office in Ulsan Metropolitan City (hereinafter “instant construction works”) with the construction cost of KRW 5,344,624,410, and the construction period from December 30, 201 to June 21, 2013 (hereinafter “instant contract for construction works”).

B. (1) On September 5, 2012, the Plaintiff subcontracted to Sejong Cultural Construction Co., Ltd. (hereinafter “Seoul Cultural Construction”) for KRW 714,549,00 a reinforced concrete construction among the aforementioned D construction works (hereinafter “instant subcontracted construction”). However, the said Sejong Cultural Construction Co., Ltd. renounced the said construction on the ground of an indirect cost increase due to the excessive long distance during the construction of the said construction works.

(2) On September 27, 2012, the Sejong Cultural Construction Claim for KRW 66,00,000 (including value-added tax; hereinafter the same shall apply) against the Plaintiff as a construction savings deposit. The Plaintiff paid KRW 66,00,000 to the Sejong Cultural Construction on the same day.

(3) On September 27, 2012, the Sejong Cultural Construction paid KRW 60,000,000,000, other than value-added tax, out of KRW 66,000,000, which was paid from the Plaintiff, to the Busan Bank Account in the name of the Defendant’s representative director.

C. (1) On October 16, 2012, the Plaintiff entered into a subcontract with the Defendant, setting the period from October 16, 2012 to January 31, 2013, with respect to the remainder of the subcontracted construction, and entered into the subcontract. At this time, the Plaintiff and the Defendant respectively entered into a subcontract agreement with the Defendant, the construction cost of which is KRW 649,549,000 (hereinafter “instant first subcontract agreement”) and the subcontract agreement with the construction cost of KRW 1,072,170,00 (hereinafter “instant second subcontract agreement”).

(2) Section 1-2 of the instant subcontract Nos. 1 and 2 of the 2nd subcontract is settled after excluding from those resulting from the reduction of construction volume on the subsequent specifications.