1. The plaintiff's appeal is dismissed.

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

Purport of claim and appeal

The first instance court.

1. Basic facts

A. The building indicated in the attached list of the Seoul Special Metropolitan City I, Seoul Special Metropolitan City I 2335С and its ground (hereinafter “instant building”) was owned by C Co., Ltd. (hereinafter “C”), and C, while carrying out the business of rebuilding and selling the instant building, completed the trust registration in the name of the Jeju Real Estate Trust on April 6, 2007.

B. On April 5, 2007, C entered into a contract with D Co., Ltd. (hereinafter “D”) for the construction of a commercial building on the 7th floor above the 2nd ground surface on the said site (hereinafter “instant construction”).

C. D subcontracted to the Plaintiff on May 29, 2007 the said new construction work in the amount of KRW 1.1 billion. On May 30, 2007, the Plaintiff re-subcontracted the said construction work in the amount of KRW 990 million to the KTTC Co., Ltd. on May 30, 2007 (i.e., a modified contract of August 30, 2007, the construction amount was increased to KRW 1.133 billion).

The instant construction was suspended due to D’s financial difficulties around June 2009.

E. On June 4, 2013, C confirmed that, with respect to the Plaintiff on June 4, 2013, “A” stating that “A shall jointly and severally guarantee the payment of KRW 500 million (excluding value-added tax) that the Plaintiff completed the civil engineering work, and that C would pay the Plaintiff the civil engineering work cost without going through the original government office.” The Plaintiff’s right to retention is “a letter of commitment,” and “B” confirming that the Plaintiff’s right to attempted construction cost against D is KRW 640,000,000,000,000,000. Since D goes bankrupt on August 30, 2009, as it actually goes bankrupt, C will take over the said construction cost against D’s Plaintiff, and accordingly, the Plaintiff’s exercise of the Plaintiff’s right to retention will accept until the principal and interest on the construction cost is fully paid.”

F. Meanwhile, the J, the representative of the Plaintiff, is the status of C’s representative from April 2007 to August 2014.