1. The Defendant’s KRW 7,560,00 and its related KRW 5% per annum from April 18, 2018 to April 18, 2019 to the Plaintiff.

1. Basic facts

A. On November 25, 2016, the Plaintiff entered into a contract with the Defendant for the incidental civil works (including an entry bridge works; hereinafter “instant civil works”) during the construction period from November 25, 2016 to January 30, 2017; the construction cost of KRW 350 million; and the liquidated damages rate of KRW 1/1000 per day.

(hereinafter “instant subcontract”). (b)

The Defendant, by January 25, 2017, continued the instant civil works, and discontinued the construction work on or around February 7, 2017 with the Plaintiff’s dispute over the construction cost.

[Ground of recognition] Facts without dispute, Gap evidence Nos. 1-4, Eul evidence Nos. 1 and 6 (including additional number), the purport of the whole pleadings

2. The parties' assertion

A. The Plaintiff’s assertion that the Plaintiff directly carried out the instant civil works due to the discontinuance of the Defendant’s construction, and completed the construction on May 30, 2017. As such, the Plaintiff demanded for compensation for delay calculated by the ratio of 1/100 of the total construction cost per day to 120 days from January 31, 2017 to May 30, 2017, which is the date following the date of completion of the instant subcontract agreement, to 42,00,000 (=350,000,000 x 0.01 x 120 days).

B. The Defendant’s assertion that the delay in the civil works in this case occurred due to the Plaintiff’s failure to pay the construction cost, delay in the supply of soil and sand, delay in the direction of construction and alteration work, and delay in work instructions, and thus

3. Determination

A. 1) The Defendant’s failure to complete the instant civil works within the construction period of the instant subcontract as seen earlier. Therefore, the Defendant is obligated to pay the Plaintiff penalty for delay as stipulated in the instant subcontract, barring any special circumstance. 2) We examine whether the instant delay was due to the Plaintiff’s failure to pay the construction cost.

The contractor delays the obligation to pay the construction cost for the completed portion of the construction which the contractor bears the contractual obligation, and even if the contractor completes the construction, the contractor shall pay the construction cost.