1. The plaintiff's appeal is dismissed.

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

Purport of claim and appeal

1...

Basic Facts

On April 19, 2010, the Plaintiff contracted the construction of the “Korea Arts Center” (hereinafter “instant building”) on the ground 923-6, Yangcheon-gu, Seoul (hereinafter “instant construction”) to Hyundai Construction Co., Ltd. (hereinafter “Modern Construction”).

In addition, on March 26, 2010, the Plaintiff and the Defendant concluded a service contract with the content that the Defendant performs supervisory duties on the instant construction work.

After the completion of the construction work, modern construction filed a lawsuit against the plaintiff for the payment of the construction cost (Seoul Central District Court 2014Gahap535303), and the plaintiff asserted that the amount of the remuneration should be deducted from the construction cost, since there is a defect due to the error in construction in modern construction.

(hereinafter referred to as “related lawsuit”. The appellate court rendered a judgment on August 29, 2017 as follows (Seoul High Court 2016Na2061960) and became final and conclusive around that time.

The construction cost to be paid by the plaintiff to modern construction is KRW 1,304,013,589.

On the other hand, due to the error in the construction of modern construction, defects in the building of this case occurred, and the remuneration of 979,047,882 is required.

However, the amount equivalent to the value-added tax can be deducted or refunded from the output tax amount, so the amount of 890,043,529, which is deducted, is the amount of damages in lieu of the defect repair that Hyundai Construction pays to the plaintiff.

However, in full view of the fact that there seems to have occurred natural aging phenomenon in the instant building for about four years from the date of inspection of the use to the appraisal of defects, the possibility that defects have been expanded due to mistake in the use and management of the instant building cannot be ruled out, and that modern construction executed defect repair in relation to the construction of the substitute stone in the instant building, it is recognized as above in accordance with the principle of fairness that modern construction is liable for damages to the Plaintiff.