1. The Defendant (Counterclaim Plaintiff) paid KRW 346,897,973 to the Plaintiff (Counterclaim Defendant) and its amount from May 21, 2015 to September 30, 2015.

A principal lawsuit and a counterclaim shall be deemed simultaneously.

Basic Facts

On March 19, 2014, the Plaintiff entered into a contract and a subcontract, with the Seoul Special Self-Governing Province (hereinafter referred to as “Tile Construction”) as a contract for the construction of a new hotel on the ground (hereinafter referred to as “instant original contract”) on April 20, 2014; the date of completion; the date of completion; June 20, 2016; and the contract amount of KRW 23.1 billion (including value-added tax).

On July 1, 2014, as between the Defendant and the construction site, a subcontract (including value-added tax) was concluded on July 1, 2014 with respect to the said new construction works (hereinafter “instant construction works”) on the basis of the date of commencement, July 1, 2014; the date of completion; June 20, 2016; and the contract amount of KRW 1.419 billion (including value-added tax).

From February 23, 2015 to February 2015, the construction for the payment of the construction cost and the default of the construction for the completion of the construction works was paid to the Defendant KRW 99,99 million (=28,079,720, electronic bonds of KRW 288,079,280,280, electronic bills of exchange, 709,930,000). However, the construction was suspended from current account transactions around February 23, 2015, and the total amount of KRW 646,152,400, out of the electronic bills was settled.

On February 25, 2015, the Defendant sent to the Plaintiff a letter requesting the Plaintiff to pay the unpaid amount of bills and the remainder of the construction as above. On March 3, 2015, the Plaintiff sent a letter of public notice stating that the Plaintiff would directly pay the unpaid construction and the unpaid construction cost, excluding the prepaid construction cost that was paid to the Defendant on March 3, 2015.

On March 13, 2015, the Defendant, except for KRW 999,900,000,000,000,000,000,000 for the contract price of the instant subcontract, and KRW 50,68,00,000,00,000 for additional construction costs following the change in the base line, shall be deemed 465,30,000,000,000 for additional construction costs following the change in the base line.