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

A. On June 21, 2016, the Defendant entered into a contract with the Plaintiff for construction of a new house on the ground, such as land C (hereinafter referred to as “instant construction”) by setting the construction cost of KRW 400 million from June 21, 2016 to November 30, 2016 (hereinafter referred to as “instant contract”). On the same day, the Defendant entered into a contract with D by setting the construction cost of KRW 385 million from June 21, 2016 to November 30, 2016 (hereinafter referred to as “instant contract”), and entered into a contract with D by setting the said construction cost of KRW 385 million from June 21, 2016 to November 30, 2016.

B. From June 10, 2016 to February 24, 2017, the Plaintiff remitted total of KRW 427,300,000 through the bank account of E and D, the Defendant’s representative director, for the construction cost, etc. of the instant construction project.

C. Around November 2016, the Defendant suspended the instant construction work.

On April 2017, the Plaintiff filed a lawsuit against the Defendant seeking compensation for damages incurred by the Plaintiff due to defects, unconstruction, and delay in completion of the construction of the instant construction project (Seoul District Court Decision 2017Gahap1163, hereinafter “Prior Case”).

E. While the above preceding case is pending, the Plaintiff filed an application for appraisal of the expenses necessary for the completion of the non-construction part and the repair of the defects in the non-construction part, and the appraiser of the above preceding case appraised that the construction expenses necessary for the completion of the non-construction part are KRW 64,82,789 as shown in attached Table 1 as shown in attached Table 2, and the construction expenses required for the repair of the defects in the construction part are KRW 7,616,224 as shown in attached Table 2.

F. In the foregoing preceding case, on December 21, 2017, the court recognized the construction cost of KRW 64,822,789, and construction cost of KRW 7,616,224, and the compensation for delay incurred in repairing the defects in the completed portion, based on the results of the said appraisal, etc., as the Plaintiff’s damage, and rendered a judgment citing part of the Plaintiff’s claim for damages.

The above judgment is both the defendant's appeal and appeal.