2. The costs of lawsuit are assessed against the plaintiffs.

A. The party status 1) Plaintiff B Co., Ltd. (hereinafter “Plaintiff B”).

(2) The Defendant is the owner of the “E hotel” (hereinafter “E hotel”) located in Seongbuk-gu, Sungnam-gu. The Defendant is a company established for the purpose of the design construction business, etc., and the Plaintiff A is the actual operator of Plaintiff B.

B. 1) The Defendant entered into a sales contract for the instant hotel on November 10, 201 as a broker of Plaintiff A and entered into a sales contract for the instant hotel on November 16, 201, and on the 16th of the same month with Plaintiff B, the instant hotel interior work (hereinafter “instant construction work”).

A) A contract was made by setting the construction cost of KRW 1,50,000 (excluding value-added tax); the construction period from November 28, 2011 to March 15, 2012; however, in the instant construction contract made between the Plaintiff B and the Defendant, the construction cost was stated in KRW 1,00,000 (excluding value-added tax). 2) After that, the Defendant paid KRW 1,59,000,000 as the construction cost to the Plaintiff B during the period from November 29, 2011 to May 15, 2012.

C. (1) Article 27 of the General Conditions of the instant Construction Contract provides that “All disputes arising from this contract shall be settled finally by arbitration in accordance with the Arbitration Rules from the KCAB.” However, the Defendant filed an application for arbitration with the KCAB seeking payment of KRW 559,800,00 and damages for delay thereof against the Plaintiffs, alleging that the part of the instant construction work was non-construction or defective and that the defect was caused, pursuant to Article 27, and filed an application with the KCAB seeking payment of additional construction costs and A/S construction costs, KRW 56,538,00, and damages for delay thereof. (2) On September 3, 2014, the Plaintiffs asserted against the Defendant for payment of additional construction costs and A/S construction costs, KRW 56,538,00, and damages for delay. (3) The KCABB stated that the KCAB had to reduce construction costs from the instant estimate and construction costs.