A. The Plaintiff is a corporation established for the purpose of civil engineering and construction, etc., and the Committee for Promotion of the Establishment of Urban Environment Improvement Association in Busan District 1-1 (hereinafter “instant Promotion Committee”) established for the purpose of urban environment rearrangement project in Busan District 171, 250-52 square meters as the project district and approved by the head of Busan District under the provisions of the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents (hereinafter “Urban Improvement Act”) on December 7, 2004 for the purpose of preparing an urban environment rearrangement project by making approximately KRW 44,002 square meters as the project district in Busan District, Busan District. The Defendant comprehensively succeeded to the rights and duties related to the affairs performed by the Promotion Committee under the provisions of the Urban Improvement Act, which was established by the Promotion Committee on July 5, 2013.

B. On September 26, 2005, the instant promotion committee decided to select the Plaintiff as the contractor of the said urban environment rearrangement project (hereinafter “instant resolution”). On January 19, 2006, the said contract entered into a provisional contract for construction works for the urban environment rearrangement project (hereinafter “instant provisional contract”). According to the said provisional contract, the Plaintiff borrowed and subsidized the project promotion expenses to the instant promotion committee; however, 10 items, such as design service expenses, etc. among the project promotion expenses, are to be lent as interest-free loans, and 10 items, such as administrative service expenses, etc., are to be lent as interest-free loans; and the Plaintiff or the promotion committee shall settle the loan, etc. without delay upon cancellation or termination of the said contract.

C. From February 2005 to October 2006, the Plaintiff lent KRW 786,757,535 to the instant promotion committee a total of KRW 1,106,757,535 with interest-free loans, such as design service charges, and on October 7, 2005, the Plaintiff lent KRW 1,106,000 with interest-free loans, such as administrative service charges, as a total of KRW 1,106,000 (hereinafter “instant loan”).

However, on February 11, 2009, the instant promotion committee is established by the landowners in the project implementation district.