1. The plaintiff (appointed party)'s appeal is dismissed.

2. The costs of appeal shall be borne by the Plaintiff (Appointed Party).

1. Basic facts

A. On October 15, 2014, the Plaintiffs contracted each of the following contracts to the Defendant for Youngcheon-si C and D Ground E (hereinafter “instant construction”).

(hereinafter collectively referred to as the “instant construction contract”). 1. Contract term: Details of the contract between October 15, 2014 and May 2, 2015

(a) Installation of solar power plants 99KW facilities and trial operation;

(b) Civil engineering works (construction sites, fences, basic construction works, drainage channels, roads);

(c) All manufacturing and installation of solar 99W structures;

(d) All the electrical construction for solar energy 99KW

(e) Permission and authorization related to solar energy 9K (application for permission for power generation facilities, electric power generation, electric safety works, and permission for development activities);

(f) PPA contracts, REC contracts, after completion of the establishment;

3. Payment of price: Total contract amount of 220,000,000 won (excluding value-added tax).

4. Matters specially agreed; and

A. The Plaintiffs shall take charge of all civil petitions for the main construction work.

(b) The repairing period of the present construction shall be two years.

B. On May 15, 2015, the Plaintiffs entered into an additional agreement with the Defendant on the defect repair part of the instant construction contract with regard to the defect repair part, stating that “the Defendant shall enter into a warranty agreement and submit 5% warranty insurance policy of the total construction cost.” On June 20, 2015, the Defendant entered into an automobile warranty insurance contract with the Seoul Guarantee Insurance Co., Ltd. and the insured as the Plaintiffs, which covers each of the defect repair parts of the instant construction contract with the amount of KRW 11 million, to guarantee the defect of the instant construction.

C. The Defendant completed the instant construction work around August 20, 2015.

On March 2016, the residents living in the vicinity of the above solar power plant suffered damage from the loss of drainage functions and soil and sand due to the defect of drainage channels installed through the construction of the instant construction. On May 2016, the residents were incurred the same damage by again lowering the rain around the same year.

Accordingly, the plaintiffs demanded the defendant to repair the defects of the drainage, and the defendant around July 12, 2016.