The appeal is dismissed.

The costs of appeal are assessed against the defendant.

The grounds of appeal are examined.

1. Article 2 subparag. 4 of the Act on the Support of the Gisung Industrial District (hereinafter “Gisung Industrial District”) provides that “Local Enterprises in the Gisung Industrial District” shall be construed as “enterprise established by South Korean residents in the Gisung Industrial District with the approval of the cooperative project under the Inter-Korean Exchange and Cooperation Act (hereinafter “Inter-Korean Exchange and Cooperation Act”) or with the receipt of the report of the cooperative project under the Inter-Korean Exchange and Cooperation Act, and Articles 17 and 17-2 of the Inter-Korean Exchange and Cooperation Act stipulate the requirements and procedures for the establishment of local enterprises in the Gisung Industrial District by prescribing

Furthermore, Article 2 subparagraph 8 (a) of the Industrial Sites and Development Act provides that the Government may take measures necessary for financial support for the smooth creation and operation of the Gsung Industrial District or support the installation of infrastructure, such as roads, water supply, railroads, telecommunications, electricity, etc. In this case, the GIC Act provides that the GIC shall be deemed a national industrial complex under Article 2 subparagraph 8 (a) of the Industrial Sites and Development Act (Article 6), while the Government may provide local enterprises of GIC with various support under the relevant statutes, such as support for the establishment and promotion fund of small and medium enterprises, support for industrial safety and health and industrial accident prevention, support for environmental conservation, support for the rationalization of energy use, support for the rationalization of energy use

(Articles 7 through 12) also provide that the National Pension Act, the National Health Insurance Act, the Employment Insurance Act, the Industrial Accident Compensation Insurance Act, the Labor Standards Act, the Minimum Wage Act, etc. shall apply to local enterprises and the South Korean residents employed thereby.

(Articles 13 through 15). In addition to the above relevant provisions, considering that civil disputes between local enterprises in the Gesung Industrial Zone arise in the course of engaging in economic activities based on the free market economic order stipulated in the Constitution of the Republic of Korea, the Republic of Korea shall be the Republic of Korea.