1. The judgment of the first instance, including the Plaintiff (Counterclaim Defendant)’s principal claim added by this court, is as follows.

A principal lawsuit and a counterclaim shall be deemed simultaneously.

1. Basic facts

A. On September 1, 2016, the Plaintiff entered into a contract for construction between the Plaintiff and the Defendant for construction work. On September 1, 2016, the Plaintiff changed the name of the Plaintiff to the Busan High Sea-F hotel (current to the F hotel);

hereinafter referred to as “instant hotel”

2) The term “instant remodeling construction” (hereinafter referred to as “instant construction”)

(1) A contract under which the contract period is set at KRW 3.5 billion per day for delay (including value-added tax) and the period of construction from September 26, 2016 to January 25, 2017 (hereinafter “instant contract for construction”) with the Defendant as the contract period for delay (hereinafter “instant contract for construction”).

B. Upon entering into a contract, the remaining KRW 300 million of the construction cost was agreed to be paid in five installments from February 28, 2017 to September 30, 2018, which was after the completion of construction work.

The main contents of the instant construction contract are as follows.

Construction Contract

4. Construction period: From September 26, 2016 to January 25, 2017

5. Construction cost: Three-five billion won per day (including value-added tax); and

6. Method of payment - Payment of 50 million won per day: - Payment of 6770 million won per day: Payment of 672 million won per day - Payment of 200 million won on October 10, 2016 - Payment of 6777 million won per day - Payment of 200 million won on November 10, 2016 - Payment of 1 billion won per day: Payment of 1 billion won per day - of 304 billion won on December 10, 2016 - Payment of 30 million won on December 10, 2016 - Payment of 30 million won per day: 348 million won per day of work completion - Payment of 300 million won on December 10, 2016 - Payment of 300 million won for 300 million won per day of work completion; and

8. Rate and period of warranty bond: 5% of the contract amount / Article 3 of the General Provisions for Construction Contracts for Two years after the completion of construction works.

1. “B” (Defendant) shall submit design documents (such as drawings, specifications, construction specifications, etc.) to “A” before the commencement of the works and obtain approval therefor;

2. The quality and specification of materials to be used for construction shall conform to the design documents; and

However, the quality and the name of goods are not clearly defined in the design documents.