A. On June 21, 2012, the Plaintiff entered into a contract with the Defendant to set the contract amount of KRW 575,025,00 (including value-added tax) and the term for installation of the supply facilities until November 30, 2012, under which the Defendant manufactured the smuggling powder processing equipment equipment capable of producing powder 0.4ton per hour, and deliver and install it to the Plaintiff’s factory located in 520-1, Gangnam-gu, Gangwon-do (hereinafter “instant supply installation contract”).

After that, on September 4, 2012, the delivery contract of this case was amended to 1.5ton per hour by the production quantity of the smuggling processing machinery equipment to be supplied and installed by the Defendant, to 730,575,000 won of the contract amount (including value added tax) and the delivery installation period until December 31, 2012, respectively.

B. In accordance with the supply installation contract of the instant case, the Defendant manufactured the instant machinery-processing machinery-making equipment (hereinafter referred to as “instant machinery”) (the Defendant completed the instant machinery-making work by subcontracting the instant machinery to LST), and installed it at the Plaintiff’s factory around January 31, 2013.

C. The main structure of the instant machinery is divided into a power plant, a water plant, and a powder plant. The power plant separates and removes tights, other than smuggling, by the power plant, separates and removes tights by the power plant, sets tights, and combines tights with tights, and carries out tight processes, such as melting and mixing tights with tights, and water quality. The water plant itself exceeds 12% through 13% of the supplied tights, and the tights are not stored at 15% or 17% of the raw powder so that the tights can be combined with the supplied tights in the process of crushing (when the tights are broken up, then the tights should be stored into the tights and tights after mixing them with the supplied tights, the quality of which should be reduced to 3% of the raw water.)