1. All appeals by the Defendants are dismissed.

2. The costs of appeal are assessed against the Defendants.

Purport of claim and appeal

1.

1. Basic facts

A. On July 12, 2005, the Daegu Metropolitan City (hereinafter “ Daegu Metropolitan City”) established and publicly announced a master plan for L Private Investment Facilities Project (hereinafter “instant project”) with the content that private citizens may engage in the design, construction, maintenance, management, and operation of L, based on the Enforcement Decree of the said Act and the basic plan for private investment facilities (hereinafter “instant project”).

However, the project site of this case is located within the urban natural park area in the development restriction zone.

B. On September 14, 2005, the Daegu City, upon the conclusion of the concession agreement for L private investment facilities projects, designated Non-Party K Co., Ltd. (hereinafter “K”) as the priority negotiation object for the project of this case and concluded the concession agreement for the project of this case with K on December 12, 2005. On December 28, 2006, the concession agreement for the amendment (hereinafter “instant concession agreement”) was made by amending part of the above concession agreement. The purpose of this agreement is to prescribe matters necessary for the implementation of this project between the competent authority (Tgu) and the project implementer (K) in implementing this project in accordance with the Private Investment Act and the Enforcement Decree of the Private Investment Act, the instruction for proposal, and the basic plan for infrastructure project.

(2) The scope and scale of this project and facilities shall be as listed in attached Table 1.

Article 3 (Definition of Terms) The term "main business facilities" shall include annexed facilities, which are constructed, leased, maintained and operated by the project.

The term "affiliated facilities" means facilities integrated with exhibition facilities which are the central facilities among the main facilities for the project, and the ownership of which belongs to the competent authority at the time of the completion of the project.

Article 40 (Lease Contract for Main Business Facilities)