From May 10, 2012 to April 21, 2015, the Plaintiff sold products, such as 140,647,720 won, to Defendant C. The Plaintiff was paid KRW 107,148,500 by June 24, 2015.

From June 13, 2015 to July 9, 2015, the Plaintiff sold products, such as 4,464,460 won, to Defendant D, and received KRW 2,852,50,500 from August 27, 2015.

[Ground for recognition: A. 1 to 4, A. 10 through 12, the purport of the entire pleadings, and the purport of the whole pleadings. B. 1 and 2, the part contrary thereto (including the Defendants’ assertion that the Plaintiff paid it in excess of the part recognized as having been paid) is not believed.] Defendant C asserts that both 14 and 12 from October 3, 2012 to August 22, 2013 due to the defect in the products sold by the Plaintiff incurred damages equivalent to KRW 58,076,00 in total of the expenses for A/S. < Amended by Act No. 11378, Oct. 3, 2012>

Of the defects claimed by Defendant C, 9 items (A/S costs totaling KRW 35,732,00) after February 18, 2013, it is recognized that H, a manufacturer of light equipment, paid KRW 37,00,000 to Defendant C on February 28, 2014, according to the statement in Party C15, this part of the allegation is rejected.

As to five defects from October 3, 2012 to November 20, 2012 (A/S totaling KRW 22,34,00). Article 69(1) of the Commercial Act provides that “When a buyer has received an object in the course of sale and purchase between merchants, he/she shall inspect it without delay, and when a defect or quantity has been discovered, he/she shall not claim cancellation of the contract, reduction of the price, or damages, unless he/she immediately notifies the seller thereof, and if there is any defect that is not immediately discovered in the object of sale and purchase, the buyer shall also find it within six months.”