1. The defendant's appeal is dismissed.

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

Purport of claim and appeal

1..

1. Basic facts

A. On September 5, 2012, the Plaintiff and the Defendant entered into a construction contract with the content that the Plaintiff would perform construction works on apartment and welfare facilities, etc. to be newly built in the Man-gu, Daegu-gu, Daegu-dong 860-1, for the purpose of the Defendant’s reconstruction project (hereinafter “instant construction contract”).

The main contents of the contract are as follows:

Article 4 (Method of Implementation of Projects) ① (referring to the defendant; hereinafter the same shall apply in this Agreement) provides Party B (referring to the plaintiff; hereinafter the same shall apply in this Agreement) with the land of the Daegu Suwon-dong, 860-1, which is owned by Party A and its members, and is supplied as substitute for the new apartment and its incidental facilities.

In such cases, the term "land to be provided to B" means land in a state that does not impede the commencement of construction works of B by securing ownership and right to use land.

(2) Eul shall invest necessary project expenses in the site referred to in paragraph (1) provided by the project approving authority in accordance with the design documents, terms and conditions of the contract, etc., and supply Gap with the newly built apartment and accessory and welfare facilities under the conditions of payment in lieu of the land provided by Gap, and the remaining building facilities shall be appropriated for the construction expenses and project expenses (hereinafter referred to as "construction project expenses").

Article 13 (Lending of Project Expenses) (1) B shall lend the following project expenses (construction project expenses):

1. Cooperative operation expenses (including office rent) (2) If Party A intends to request Party B to reimburse the various kinds of documentary evidence related to the business expenses, it shall be submitted to Party B, and Party B shall be deposited into Party B’s designated account as soon as possible;

(3) The expenses for the projects referred to in paragraph (1) above shall be executed by executing this fund, and shall be automatically refunded from the expenses for occupancy in the cooperative members and the proceeds from sale in the general market, and remaining income except for the expenses for the re-building-related projects.