The costs of appeal are assessed against the Plaintiff, including the costs of assistance and participation in the lawsuit.

1. As to the grounds of appeal Nos. 1 and 2

(a) Restrictions on the establishment of factories and exceptions thereto outside water-source protection areas provided for in the Water Supply and Waterworks Installation Act and the Enforcement Decree of the Water Supply and Waterworks Installation Act, the amendments thereto and the purport of amendments

(1) Article 7-2(1) of the Water Supply and Waterworks Installation Act (amended by Act No. 10317, May 25, 2010; hereinafter “Water Supply and Waterworks Installation Act”) provides that “No factory may be established under subparagraph 1 of Article 2 of the Industrial Cluster Development and Factory Establishment Act in an area prescribed by Presidential Decree as an upper region of the water-source protection area or a upstream and lower stream of water intake facilities (limited to water intake facilities for wide-area waterworks and local waterworks).” The main sentence of Article 7-2(2) provides that “The head of a Si/Gun/Gu may approve the establishment of a factory prescribed by Ordinance of the Ministry of Environment in an area prescribed by Presidential Decree in consideration of the impact on water supply sources among the areas where the establishment

Accordingly, Article 14-2 Subparag. 1 of the Enforcement Decree of the Water Supply and Waterworks Installation Act (amended by Presidential Decree No. 22506, Nov. 26, 2010; hereinafter “Enforcement Decree of the Water Supply and Waterworks Installation Act”) amended by Presidential Decree No. 22506 of Nov. 26, 2010 provides that where a water-source protection area is designated and publicly announced, a factory cannot be established in an area within ten kilometers of flow-distance from the border zone of the water-source protection area, and Article 5 of the Addenda of the Enforcement Decree of the Water Supply and Waterworks Installation Act (amended by Presidential Decree No. 22506, Nov. 26, 2010; hereinafter “Enforcement Decree of the Water Supply and Waterworks Installation Act”) provides that, notwithstanding the amended provisions of Articles 14-2 and 14-3, a factory may be expanded within the scope of the area of the factory site or a factory may be changed to the extent that wastewater does not increase.

(2) Subsequent to the amendment of the Enforcement Decree of the Water Supply and Waterworks Installation Act (amended by Presidential Decree No. 25309, Apr. 15, 2014) on April 15, 2014.