2. The costs of lawsuit are assessed against the plaintiffs.

A. On June 16, 2016, the Defendant entered into a business service contract with the H District Housing Association (hereinafter “instant association”) and the instant association with respect to the new construction of an apartment building in Gangnam-si I (hereinafter “instant project site”).

The number of apartment units to be constructed shall be 467 households, but it was decided to be the final size of the business plan approved.

B. On April 14, 2017, the instant association filed an application for authorization to establish a housing association with the number of its members at 288 and with the number of its members at 467 households. On June 2, 2017, Gangnam-si approved the establishment of the instant association with the number of its members at 265 and with the number of its members at least 80% of the scheduled number of members, filed an application for approval for a project plan by inviting its members and filed an application for approval for a project plan, and the number of its members, which is the State-owned land adjacent to the south of the instant project site, are not the “open land where construction is not permitted” as stipulated in Article 86(6) of the Enforcement Decree of the Building Act.

C. On August 11, 2017, the instant association filed an application for approval of a plan to recruit members of 202 households in Gangnam-si. On September 20, 2019, Gangnam-si approved the additional recruitment of 202 members by October 31, 2017, and approved the extension of the recruitment period until December 31, 2017.

On December 14, 2017, the instant association filed an application for approval of the business plan with the number of members of the 467 household units for the construction of an apartment building with 450 units. On March 6, 2018, Gangnam-si notified the instant association that Article 86(6) of the Enforcement Decree of the Building Act cannot be applied to the instant railway site. The instant association withdrawn the application for approval of the business plan on March 15, 2018.

E. The instant association changes the number of its members on March 22, 2018 and the following day from 265 to 448.