1. The Plaintiff (Counterclaim Defendant) paid KRW 9,663,450 to the Defendant (Counterclaim Plaintiff) and its related amount from November 12, 2016 to January 9, 2017.

A principal lawsuit and a counterclaim shall be deemed simultaneously.

1. Basic facts

A. On August 11, 1997, the Plaintiff registered his/her business as “production”, “type of lighting equipment”, and “Sacheon-si C” with the trade name of B, and subsequently constructed the 4th floor used as a factory in the above address around June 28, 2002. On July 11, 2002, the Defendant, who is an operator of the electric sales business, applied for a change of the type of electric power as “industrial power” and received electricity accordingly. On February 6, 2012, the Plaintiff changed its business registration by adding the “Do” business to the pre-existing type of business, other than the pre-existing type of business, and adding the “Sacheon-si, Nowon-gu,” instead of the “Sacheon-si,” and changed its business registration.

B. On June 20, 2014, the Defendant sent a “request for penalty due to the breach of the terms and conditions of electricity supply” to the Plaintiff, and did not separate the assembly part of the lighting fixtures recognized as industrial application, and used electricity for industrial purposes together with general facilities such as warehouses, offices, exhibition sales facilities. According to Article 65 of the former Terms and Conditions of Electricity of the Defendant, if two or more different types of contracts are used at the same place of electricity use, each facility should be separated. In the event that a contract for the use of electricity was concluded on the whole, if there are different types of contracts other than the general electricity and the residential electricity, the general electricity fee shall be applied.

From June 2009 to May 201, 2014, the evaded amount, amount of tax, and the Electric Power Fund of 60 months (applicable to the five-year extinctive prescription period of commercial bonds) mean the Electrical Industry Foundation Fund established by the Government in order to secure financial resources necessary for the sustainable development and the creation of the foundation of the electric utility industry (see Article 48 of the Electric Utility Act), and the Defendant is acting on behalf of the Government.

The sum of 15,853,460 won was notified to pay by July 11, 2014.

The details of relevant regulations are as shown in the attached Form.