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

A. On October 16, 2018, when the instant lawsuit was pending, B was decided to commence rehabilitation procedures by Busan District Court 2018dan1012, and the Defendant (B and C) was appointed as joint managers.

The reporting period of rehabilitation claims was from November 7, 2018 to November 21, 2018, and the inspection period was from November 22, 2018 to December 13, 2018.

B. On December 28, 2018, the Plaintiff reported the price of KRW 35,560,950 as rehabilitation claims (hereinafter “instant claim”) to the said rehabilitation court. On December 18, 2019, the Defendant denied the total amount of the rehabilitation claims reported by the Plaintiff and raised an objection thereto on the special inspection date (hereinafter “instant special inspection date”).

C. The Defendant taken over the instant lawsuit on May 1, 2020.

[Recognition] Facts without dispute, Gap evidence No. 10, the purport of the whole pleadings

2. On February 2013, the Plaintiff’s assertion entered into a dental material supply contract with B, who operates the hospital with the trade name of “E hospital”, and supplied dental material to B, and the Plaintiff did not pay the amount equivalent to KRW 35,560,950 to the Plaintiff.

Therefore, B is obligated to pay to the Plaintiff the price of the goods that is not paid to the Plaintiff KRW 35,560,950 and damages for delay.

3. Determination on this safety defense

A. The Defendant’s assertion is unlawful, since the Plaintiff did not take over the instant legal procedure within one month from the date of the instant special inspection.

B. When rehabilitation procedures commence, the litigation procedures on rehabilitation claims falling under property claims arising prior to the commencement of rehabilitation procedures are suspended (hereinafter “Act”).

Article 59(1) of the Act and any rehabilitation creditor who intends to participate in rehabilitation procedures shall report rehabilitation claims to the court within the period for reporting the claims (Article 148 of the Act), and the custodian of the reported rehabilitation claims, etc. are legitimate.