1. All appeals filed by the Plaintiff (Counterclaim Defendant) and the Defendant (Counterclaim Plaintiff) are dismissed.

2. The costs of appeal shall be principal lawsuit and counterclaim.

A principal lawsuit and a counterclaim shall be deemed simultaneously.

1. Facts of recognition;

A. The Plaintiff is a company running the clothing wholesale business, etc., and the Defendant is a person who operates the clothing manufacturing business, etc. under the trade name “E”.

B. On or around December 2012, the Plaintiff supplied the Defendant’s local factory, the Plaintiff’s supply of the raw materials to the Defendant’s local factory is below the clothes processing contract of this case under which the Defendant purchased the raw materials and manufactures and supplies the clothing 4,000 set at the Plaintiff’s work instruction, and is to receive the costs of pregnancy processing and supplementary materials from the Plaintiff.

AB concluded the agreement.

C. On December 30, 2012, according to the instant contract, the Plaintiff is the Plaintiff’s local factory of the Defendant in China, with the amount equivalent to KRW 34,362,559 and below KRW 34,362,559.

B. First of all, the 40 sets of sampling was requested to the Defendant to use it for consultation with the Chinese CJ Home shopping. D.

On January 5, 2013, the Plaintiff received a report from F in charge of the internship work and from the Defendant on the source of this case, which caused aquatic phenomenon, and asked the Defendant as to whether the production of sampling is possible. The Defendant responded to the possible production of sampling if so increased due to the diversification work.

Accordingly, the plaintiff approved the defendant to continue the production of sampling.

E. On January 8, 2013, the Plaintiff instructed the Defendant to suspend sampling operations on the grounds of defects in the arms and legs supplied by the Defendant, but the Defendant was already under processing by arbitrarily establishing the original part of the quantity of 2,000 bits without consultation or approval with the Plaintiff.

F. Since then, the plaintiff and the defendant have voluntarily produced defective goods less than 2,000 bits of 2,000.

Though consultation was made on several occasions with respect to processing, return of remaining raw materials, and apportionment of losses, such as expenses for processing, but no agreement was reached, the defendant shall pay the plaintiff the expenses for processing and subsidiary materials, and the expenses for storing goods.