1. The defendant's appeal is dismissed.

2. The costs of appeal shall be borne by the Defendant.

Purport of claim and appeal

1...

Judgment on the Grounds of Claim

A. On May 2014, the Plaintiff was awarded a contract with the Defendant for the restoration of the forests and fields located on the frontbuk-gun, Muju (hereinafter “instant forests and fields”) located on the frontbuk-gun, and completed approximately KRW 25% of the instant construction works, as the Plaintiff was awarded a contract with the Defendant for KRW 27 million.

B. Therefore, the Defendant is obligated to pay the Plaintiff damages for delay at each rate of KRW 6,750,00 for the construction cost (=27,000,000 x 0.25) and 5% per annum under the Civil Act from May 8, 2015 to April 8, 2016, the date when the original copy of the instant payment order was served, which is the day following the delivery of the original copy of the instant payment order, until April 8, 2016, which is the date when the first instance judgment was rendered, and 15% per annum under the Act on Special Cases Concerning the Promotion, etc. of Legal Proceedings from the following day to the day when the original copy of the instant payment order was fully paid.

Judgment on the defendant's argument

A. 1) The Defendant asserts that, as the Plaintiff could not complete the construction due to the shortage of funds during the instant construction work, the Plaintiff contracted the remainder of the instant construction work to C, and the Plaintiff and C agreed to settle the construction cost. As such, the Defendant is not obligated to pay the construction cost to the Plaintiff. 2) The Defendant asserted as above and did not submit any materials verifying it. Thus, the Defendant’s assertion cannot be acknowledged.

B. 1) The Defendant asserts to the effect that the instant construction cost should be deducted from the instant construction cost, since the Defendant spent expenses of KRW 4,330,000 in relation to the instant construction work. 2) In order to deduct the instant construction cost from the construction cost that the Defendant paid to the Plaintiff, the Defendant contracted the instant construction work to the Plaintiff, and the Defendant spent the instant construction cost.