1. On November 29, 2018, the Defendant’s branch court of Suwon District Court for the Plaintiff determined the costs of lawsuit against the Plaintiff.

The lower court rendered a decision on November 29, 2018 (hereinafter “instant decision”) stating that “The amount of litigation expenses to be repaid by the Plaintiff to the Defendant is KRW 11,514,830, which the Defendant filed against the Plaintiff, shall be determined as KRW 11,514,830” (hereinafter “instant decision”).

The instant decision became final and conclusive on December 20, 2018.

On June 21, 2017, the Plaintiff filed a lawsuit against the Defendant for damages as Suwon District Court Branch 2015Kadan24883, and the said court rendered a judgment of partial acceptance that “the Defendant shall pay to the Plaintiff 5,064,200 won and the amount calculated by applying 5% per annum from January 25, 2017 to June 21, 2017, and 15% per annum from the next day to the date of full payment.”

On May 29, 2018, the appellate court dismissed the plaintiff's appeal.

(U) On October 4, 2018, the appellate court dismissed the Plaintiff’s appeal, and the above appellate court judgment became final and conclusive around that time.

(Supreme Court Decision 2018Da244105 (hereinafter “instant judgment”). Upon the delivery of a duplicate of the instant complaint, the Plaintiff notified the Defendant that “A claim against the Plaintiff by the instant decision is a passive claim, and the Plaintiff’s claim against the Defendant by the instant decision is an automatic claim, but the time of offsetting each claim is set off on December 20, 2018, and both claims are set off against the equal amount.”

The duplicate of the instant complaint reached the Defendant on May 29, 2019.

On April 17, 2019, the Defendant applied for a compulsory auction of real estate to Suwon District Court Branch C, based on the instant decision, and the said court rendered a decision to commence the auction on April 19, 2019.

On May 3, 2019, the Plaintiff calculated the Defendant’s claim against the Plaintiff, as a result of offset as set forth in the foregoing sub-paragraph (c) and calculated the Defendant’s claim against the Plaintiff as KRW 4,932,758, as a result of the set-off.