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1. The plaintiff's claim is dismissed.
2. The costs of lawsuit shall be borne by the Plaintiff.
Reasons
1. Details of the disposition;
A. The Plaintiff is a company whose business purpose is the design, manufacturing, and sales of automation facilities.
B. On July 7, 2010, the Plaintiff received a contract (hereinafter “instant contract”) from the Defendant for the installation of a monitoring system of the same and three electric power stations (hereinafter “instant construction”) with the contract amount of KRW 229,856,00 (i.e., value of KRW 208,960,000 value-added tax of KRW 20,896,000), July 14, 2010 scheduled date of commencement, and December 10, 2010 scheduled date of completion of construction works (hereinafter “instant construction”).
C. On August 17, 2010, the Plaintiff issued a subcontract for a part of the instant construction work (i.e., the supply price of KRW 140,410,000, value-added tax of KRW 14,014,000), August 18, 2010 scheduled commencement date, and December 10, 2010 scheduled completion date for completion of construction works (hereinafter “instant subcontract”).
On December 10, 2010, the Plaintiff and the Defendant entered into a modified contract to reduce the contract amount of the instant subcontract to KRW 227,143,754 (i.e., material cost of KRW 46,009,687; KRW 160,484,635; value-added tax of KRW 20,649,432). On December 15, 2010, the Plaintiff and the tax personnel entered into a modified contract to reduce the contract amount of KRW 124,70,000 (i.e., material cost of KRW 46,00,000; KRW 78,700,000; value-added tax).
E. The Plaintiff completed the instant construction at the time of completion of the instant contract.
F. On March 5, 2013, the Defendant, on the ground that “the Plaintiff has placed an illegal subcontract with tax revenue sources exceeding 50% of the instant construction project, and did not obtain written consent from the Defendant, the ordering person,” Article 15 of the former Rules on Contract Affairs of Public Corporations and Quasi-Governmental Institutions (amended by Ordinance of the Ministry of Strategy and Finance No. 375, Nov. 18, 2013; hereinafter “instant Rules”), Article 76(1) of the Enforcement Decree of the Act on Contracts to Which the State is a Party (hereinafter “Enforcement Decree of the State Contract Act”).