1. The plaintiffs' claims against the defendant are all dismissed.

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

Basic Facts

Plaintiff

On September 30, 2014, A entered into an agreement on the promotion of projects (hereinafter referred to as “instant agreement”) with the Defendant regarding the construction, management, and operation of D facilities (hereinafter referred to as “instant projects”) in the vicinity of Seocheon-gu, Seocheon-gu, Seoul (hereinafter referred to as “instant projects”).

As the Plaintiff failed to establish an investment company within 60 days from the date of conclusion of the instant agreement pursuant to Article 5(2)2 of the instant agreement, on September 7, 2015, the Defendant notified the Plaintiff that “In the event that an investment company is not established by October 20, 2015, the instant agreement will be terminated and the procedures for reverting the performance bond will be followed.”

However, Plaintiff A failed to establish an investment company by October 20, 2015, and the Defendant and Plaintiff A entered into an agreement on October 27, 2015, stating that “In the event that Plaintiff A was able to recognize the establishment of an investment company by the date prior to the Defendant’s notice of termination of the instant agreement (e.g., October 28, 2015), the Defendant shall not terminate the instant agreement and run the instant project without cancelling the instant agreement (hereinafter “instant agreement”).

Plaintiff

A, on October 26, 2015, held an inaugural general meeting and a board of directors to establish Plaintiff B, prepared the articles of incorporation, and paid shares. On October 27, 2015, A filed an application for the registration of incorporation of Plaintiff B with respect to Plaintiff B.

At around 16:00 to 17:00 on October 28, 2015, the Defendant did not receive contact from the Plaintiff that it had taken measures to establish an investment company pursuant to the instant agreement, and “the instant agreement shall be terminated because an investment company was not established by October 20, 2015.”

The internal approval shall be prepared and completed.

Plaintiff

A, around 17:50 on October 28, 2015, visited the defendant and filed an application for the issuance of share capital with the defendant.