1. All of the plaintiffs' claims are dismissed.

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

Basic Facts

The term "local enterprise in the Gsung Industrial Complex" means an enterprise (including its branch offices, business offices, and offices) established by the residents of South Korea at the request of the Defendant Joint Stock Company (hereinafter referred to as the "Defendant A") on January 2016 at the time of the conclusion of a clinical processing contract and at the request of the Defendant Joint Stock Company (hereinafter referred to as the "Defendant A") for the supply of raw and secondary materials to the Plaintiff Joint Stock Company (hereinafter referred to as the "Plaintiff AWC") in the Gsung Industrial Complex located in the Gsung Industrial Complex (hereinafter referred to as the "GIC") in the GIC after obtaining approval for or receiving a report on a cooperative project under the Inter-Korean Exchange and Cooperation Act.

(Article 2 subparag. 4 of the Act on the Support of the Gisung Industrial District (hereinafter “C”) supplied raw materials to “A”, a corporation (hereinafter “C”), by processing them in C, and delivering finished products to Plaintiff A&C, and Plaintiff A&C supplied them with raw materials to C by paying processing costs.

On February 4, 2016, the Plaintiff Company Franchise Co., Ltd. (hereinafter “Plaintiff Franchise”) supplied original materials to D on February 4, 2016 (hereinafter “D”), upon which Plaintiff Franchise supplied them to D, processed them, delivered 25,690 finished products to Plaintiff Franchise and delivered them to Plaintiff Franchise, and Plaintiff Franchise paid KRW 25,690,000 to Plaintiff Franchise, and supplied them with original materials to D.

Meanwhile, the representative director E is the F of the representative director of the Defendant Company B (hereinafter “Defendant B”).

On February 10, 2016, the Korean government of the Republic of Korea, which was unable to implement each contract following the closure of the GIC, voluntarily suspended the operation of the GIC as a means of sanction for the long-range development, etc. of North Korea, and North Korea, on February 11, 2016 following the day, stated that the NIC would liquidate all remaining side assets of the GIC around March 10, 2016.