1. The Plaintiff (Counterclaim Defendant) paid KRW 51,800,000 to the Defendant (Counterclaim Plaintiff) and against this, from March 11, 2017 to April 18, 2018.

A principal lawsuit and a counterclaim shall be deemed simultaneously.

1. Basic facts

A. The pertinent Plaintiff is an individual entrepreneur engaged in manufacturing business, such as high-frequency machinery, with the trade name of “B,” and the Defendant is a company engaging in manufacturing business of automobile parts, etc.

B. On December 24, 2015, the Plaintiff and the Defendant entered into the first contract for the supply of machinery and equipment (hereinafter “the first contract”) with the Defendant to manufacture and supply 30kW high-frequency heat treatment equipment (basic power source equipment AHF-30K, primary machinery ‘the value-added tax’) for 4m showers (the parts necessary for a motor vehicle mother) at 4m. to the Defendant.

Article 5 (1) of the above contract provides that "the defendant shall conduct a test for whether there is any defect in the relevant facility within 10 days from the time when the plaintiff completed the start-up operation and pay the balance in full when there is no defect."

On January 13, 2016, the Defendant paid down payment of KRW 11,800,000 to the Plaintiff.

On January 20, 2016, the Plaintiff supplied the primary machinery to the Defendant. However, as a result of the trial run, there was a problem that the Plaintiff did not treat the goods at the end of the showers.

C. On March 28, 2016, the Plaintiff and the Defendant concluded a contract for the supply of machinery and equipment (hereinafter “the second contract”) with the Defendant to manufacture and supply 62,560,000 won of the basic power source equipment (hereinafter “the second contract”) for manufacturing and supplying 100kW high-frequency heat processing equipment (hereinafter “the second contract”) for showers with 4mm high-frequency electric power source equipment (hereinafter “the second contract”).

In addition to the provisions of Paragraph 1 of Article 5 of the first contract, Article 2 Paragraph 1, Paragraph 3 of the second contract provides that "this heat treatment machine shall be heat treatment throughout the entire area of showers when heat treatment is conducted (within 10 days after the facility was installed, the plaintiff shall return to the defendant, including the down payment and penalty (two times the contract deposit) of this facility when the heat treatment is not effected within 10 days after the facility was installed)."