A. The Defendant was awarded a contract from the KS Industry Co., Ltd. for the construction of a new construction of the Mercedes-Benz sub-building (hereinafter “instant building”).

On November 14, 2012, the Defendant subcontracted to the Plaintiff the construction contract amounting to KRW 1,155,000,000 (value 1,050,000,000, value-added tax amounting to KRW 105,00,00), and the construction period from November 19, 2012 to June 30, 2013.

(hereinafter “instant contract”). The rate of warranty bond stipulated in the instant contract is 3%, and the rate of liquidated damages is 0.2% per day.

The main terms and conditions of the instant contract are as follows.

Article 23 (Defect Security) (1) The plaintiff shall pay to the defendant the amount calculated by multiplying the contract amount by the warranty bond rate specified in the contract (hereinafter referred to as "liability bond") by the contract amount, in cash or by the following certificate, after completion inspection until he/she is paid the price for the construction:

Provided, That this shall not apply where the payment of security deposit is not required due to the nature of the construction project.

1. Certificates issued by the construction mutual aid association, specialized construction mutual aid association, facility mutual aid association, electrical construction mutual aid association, and information and communications mutual aid association;

2. Surety insurance policy;

3. Letter of guarantee from the Credit Guarantee Fund;

4. National or local bonds; and

5. Financial institution payment guarantee.

6. A certificate of deposit of a financial institution (Performance Delay) (1) When the plaintiff fails to complete works within the deadline for completion as set forth in the contract, the amount calculated by multiplying the contract price by the rate of liquidated damages and the number of delayed days shall be paid to the defendant.

B. The Plaintiff continued construction work under the instant contract and suspended construction work on May 24, 2013 according to the Defendant’s notice of termination.

C. On November 21, 2013, the Plaintiff’s succeeding intervenor entered into the instant contract with the Defendant as the Chuncheon District Court 2013TTT4150.