1. The Plaintiff (Counterclaim Defendant) paid KRW 165,826,00 to the Defendant (Counterclaim Plaintiff) and its related amount from December 1, 2012 to December 31, 2012.

A principal lawsuit and counterclaim shall also be deemed a principal lawsuit and counterclaim.

1. Facts of recognition;

A. The Plaintiff, around 2012, operated a business entity that performs interior works under the trade name of “C,” and the Defendant, “D,” respectively.

B. On August 10, 2012, the Plaintiff and the Defendant entered into a contract with the Plaintiff Company E (hereinafter “instant company”), under which the interior works of “G” located in Yongsan-gu Seoul Metropolitan Government F are awarded a contract for KRW 440 million (including value-added tax) of the construction cost. On August 21, 2012, the Plaintiff and the Defendant entered into a contract with the Plaintiff on August 21, 2012, under which the additional interior works of the said business place are awarded a contract for KRW 44 million (including value-added tax) of the construction cost.

(2) Each of the above construction works (hereinafter “instant construction works”) and each of the above contracts is indicated as “A” on November 31, 2012 (Article 2(2)); and the Plaintiff’s “B” and the Defendant’s “B,” respectively.

The main contents of the instant contract are as follows.

Article 12 (Settlement of Disputes) (1) Except as otherwise provided for in a contract, disputes arising out of a contract shall be settled by the parties to the contract by mutual agreement.

(2) If agreement under paragraph (1) is not reached, the parties concerned shall apply for mediation to the Construction Dispute Mediation Committee established under the Framework Act on the Construction Industry or finally settle the dispute by arbitration of the Korea Commercial Arbitration

(c) Article 13 (Matters under Special Agreement) (2) In the event of a failure in the payment portion after the failure, the "A" and "C" shall have the same responsibility.

C. 1) After completion of the instant construction, the Defendant received only KRW 318,174,00 among the construction cost from the instant company or the Plaintiff. 2) Accordingly, the Defendant asserted against the Plaintiff on June 4, 2015 that the Plaintiff is liable to pay the remaining construction cost (= KRW 484,00,000 - KRW 318,174,000) as a joint and several surety of the instant company.