1. The plaintiff's claim is dismissed.

2. The costs of lawsuit shall be borne by the Plaintiff.

1. Basic facts

A. On July 2009, the Plaintiff entered into the subcontract agreement with the Government Construction Co., Ltd. (hereinafter “Government Construction”) on and around July 1, 2009, the Plaintiff: (a) designated the construction cost of the 5,155,700,000 won for the construction work among the construction work for the Daegu Techn Industrial Complex Development Project (2 Sections); and (b) subcontracted the instant subcontract at KRW 25,02,80 for the contract deposit (hereinafter “instant subcontract”); and (c) the main contents of the instant subcontract are as follows.

Article 7 (Performance of Contracts and Guarantee for Payment of Construction Costs) (1) The plaintiff and government-invested construction shall guarantee each other the execution of contracts and the payment of construction costs in the following manners:

Provided, That where payment guarantee of subcontract consideration is exempted pursuant to the Framework Act on the Construction Industry or the Fair Transactions in Subcontracting Act, mutual guarantee may not be granted.

1. For the Government Accounting Construction, a contract execution guarantee of an amount equivalent to 10% of the contract amount to the Plaintiff.

1. Where construction mutual aid associations, specialized construction mutual aid associations, guarantee insurance companies, and guarantee agencies equivalent thereto, such as the Korea Credit Guarantee Fund, fall under any of the following subparagraphs, the Plaintiff and government-invested construction may cancel or terminate all or part of the relevant contract, if the contract is not performed within the said period after demanding the payment of the contract in writing, fixing a reasonable period:

1. When the plaintiff or the government-invested construction works are deemed unable to achieve the purpose of the contract due to the violation of the terms and conditions of the contract;

2. Where it is clearly deemed impossible to complete the construction work in the air due to any cause attributable to the construction work, such as dishonoring and bankruptcy;

B. On August 2009, the conclusion of the contract for performance guarantee was 1 Hosan Construction, which was executed by the Defendant and the instant subcontract around August 2009, the guarantee creditor, the Plaintiff, and the guaranteed amount 25,02.