1. The main claim and counterclaim in this case are dismissed, respectively.

2. Of the costs of lawsuit, the costs of appraisal are assessed against the Plaintiff (Counterclaim Defendant).

1. Basic facts

A. On March 5, 2013, the Plaintiff and the Defendant entered into a contract for the supply of crops (hereinafter “instant supply contract”) with the content that the Defendant would produce and supply the two parts and three parts of pressure reproduction devices used in the Plaintiff’s factory. The payment date was set on June 1, 2013; the supply price was set at KRW 350 million (excluding additional taxes); on the same day, the Plaintiff paid the Defendant the down payment amount of KRW 35 million.

Article 1 [Purpose] The purpose of this Agreement is to provide for all matters necessary for “B (Defendant)” to manufacture and deliver goods under this Agreement to “A (Plaintiff).”

VI.[Contract Amount and Payment Method] The total amount of this mechanical contract shall be KRW 350 million, and the payment method shall be as follows:

(A) 35 million won shall be paid at the time of conclusion at the time of conclusion.

(B) The intermediate payment of KRW 215 million shall be paid on April 30, 2013.

(C) The balance of KRW 100 million shall be paid when the inspection and the trial run result are deemed good after the completion of the supply and the “A” and “B” are recognized.

Article 7 [Defect Security] ① “B” shall conform to the specifications directed by “A” and supply complete articles equipped with the prescribed quality and performance.

(2) If any defect is found in the supplied goods, “B” shall repair the defective goods, deliver alternative goods, or take other measures required by “A” without compensation.

However, this shall not apply where the warranty period has expired.

(3) Where damage is incurred to "A" due to hidden defects in the supplied goods, "B" shall be liable for compensation for "A".

Provided, That this shall not apply where the guarantee period has expired.

Article 10 [Inspection and trial run] In principle, the test shall be conducted in the presence of “A” and “B” at the place of delivery, and the test run shall be conducted under the responsibility of “B”.

2. “B” shall continue to be at least three times a month during the foregoing free guarantee period and for three consecutive months.