1. The judgment of the court of first instance is modified as follows.

The Defendant-Counterclaim Plaintiff (Counterclaim Defendant) is KRW 32,209,921 and also KRW 32,209.

The principal lawsuit and counterclaim shall also be deemed to have been filed.

1. The fact that the Defendant was awarded a contract for the new construction of B’s factory operation from B Co., Ltd. (hereinafter “B”) on April 16, 2010, and subcontracted the instant construction to the Plaintiff, and the Plaintiff completed the instant construction by November 2010, but the fact that the Plaintiff was not paid KRW 34,849,921 out of the construction cost of the instant construction cost did not conflict between the parties, or that it was recognized in full view of the purport of the entire pleadings in the statement in subparagraph 1.

2. Determination

A. According to the above facts, the Defendant is obligated to pay the Plaintiff the remainder of the construction project in this case and the delay damages therefrom, barring any special circumstance.

B. The Defendant’s assertion as to the defect repair claim 1) The Defendant’s assertion as to the damages claim against B, who is the ordering person, notified the Plaintiff of the fact of filing the lawsuit (hereinafter “prior lawsuit in this case”) which was instituted by the Defendant against B (the Busan High Court Decision 2012Na10645, May 27, 2014, and 2012Na10720, hereinafter “instant prior lawsuit”). As such, the Plaintiff’s participation in the lawsuit is effective.

Based on the written appraisal of the above lawsuit, damages equivalent to the total amount of KRW 97,916,555 were incurred due to the defects in the execution of the construction of this case.

Therefore, the above damage compensation set off against the obligation to pay the remainder of the construction in this case, and instead, against the plaintiff, the amount of KRW 63,066,634, which is the excess portion (=97,916,555, which is the compensation for damages in lieu of defect repairs - KRW 34,849,921, which is the remainder of the construction in this case).

B. The gist of the Plaintiff’s assertion does not affect the Plaintiff’s participation since the Plaintiff was not served with the notice of lawsuit in the preceding lawsuit.

On the basis of a new appraisal statement in the first instance trial, the damage of the defect repair cost due to the defect in the execution of the instant construction works is only KRW 2,640,000 in total.

Therefore, the defendant raises objection to the plaintiff.