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. Facts of recognition;

A. On June 4, 2003, the Plaintiff entered into a contract with the Defendant to sell B Apartment-dong 2803 (hereinafter “instant apartment”) at the price of KRW 937,348,100, which was newly constructed between the Defendant and the Defendant (hereinafter “instant apartment sales contract”). The main contents of the instant sales contract are as follows.

(A) “A” and “B” refer to the Plaintiff and the Defendant respectively. The scheduled occupancy date: November 2006 (the scheduled occupancy date may be somewhat changed depending on the process, etc.) Article 5 (Devaluation Fees, Overdue Charges, and Compensation for Delay) (1) “A” shall discount the amount calculated on the basis of the number of days for advance payment by applying the discount rate of 3% per annum for the advance payment amount in cases where “B” pays the intermediate payment before the agreed date.

Provided, That the balance shall be discounted on the basis of the first date of designation of occupancy, and the discount fees and the late payment charge shall not apply from the first date of designation of occupancy.

(2) When the date (the expiration date of the designation period for occupancy in cases of remaining payments) of an agreement has elapsed due to the delay in the payment of intermediate payments and remainder, the late payment shall be paid plus the late payment interest calculated by adding up the average credit rates (based on household loan and new amount to be handled) of the deposits issued by the Bank of Korea at the time of the conclusion of this agreement to the late payment period and the interest rate for the overdue period (based on the previous year on the contract date) of the highest bank share in the household fund loan market (based on the previous year) at the time of the conclusion of this agreement to the late payment period.

Provided, That where the construction schedule is considerably late than the initial payment schedule, "A" and "B" may adjust the payment schedule by mutual agreement.

(3) "A" shall be the amount already paid and the number of days delayed, if it is impracticable to move into the expected date of occupancy specified in the preamble of a contract.