1. All of the instant lawsuits are dismissed.

2. The costs of lawsuit are assessed against the plaintiffs.

Basic facts, the Ministry of Land, Transport and Maritime Affairs granted 380.9 billion won subsidies to Seoul Special Metropolitan City (hereinafter "Seoul Metropolitan City") for the purpose of supporting the construction of national rental housing from December 31, 2002 to December 31, 2009.

The Seoul Special Metropolitan City granted the above national subsidy to Plaintiff E.S. (hereinafter “Plaintiff E.S.”) in the form of investment.

Plaintiff

The Corporation shall use the above national subsidy received from Seoul Metropolitan Government for accounting as capital, construction of national rental housing, etc. for the purpose of granting subsidies, or acquisition of housing necessary for the purchased rental housing business, and indicated its financial status by indicating it as an increase in assets.

Meanwhile, from September 13, 2010 to October 29, 2010, the Board of Audit and Inspection conducted an audit on the implementation status of development projects of local public enterprises with respect to nine urban development projects including the Plaintiff Corporation.

Article 64-2 (1) of the Local Public Enterprises Act provides that the local government-invested public corporation's accounts shall be dealt with in accordance with the corporate accounting standards in order to clearly grasp its management performance and financial status, and Article 71 of the corporate accounting standards provides that where the local government-invested public corporation acquires assets with the national subsidies appropriated for the acquisition of assets, it shall be stated in the form of deducting them from the acquisition assets. Therefore, the Board of Audit and Inspection determined that the accounting should be made in the form of deducting the national subsidies from the acquisition assets in accordance with the corporate accounting standards and clearly indicate its financial status

Based on this, the Board of Audit and Inspection has acquired assets (national rental housing, etc.) from the Ministry of Land, Transport and Maritime Affairs with a total of KRW 380.9 billion under the pretext of construction funds, such as national rental housing, etc. from 2003 to 2009.