1. The Defendant’s KRW 80,613,540 for the Plaintiff and KRW 5% per annum from June 20, 2018 to January 23, 2019.

1. Facts of recognition;

A. On December 24, 2015, the Plaintiff and the Defendant concluded a processing contract (hereinafter “instant contract”) with the content that the Plaintiff provided materials, such as fibers, to the Defendant and processed them and produced and supplied clothes to the Plaintiff.

B. On January 2016, the Plaintiff provided the Defendant with textile and auxiliary materials equivalent to KRW 127,958,00 for the processing of clothes under the instant contract (including surtax separate and surtax, KRW 141,466,864) (hereinafter “instant subsidiary materials”).

C. The Defendant concluded a discretionary processing contract with Korean companies, a local company, which is a company of the Republic of Korea, to enter into an industrial zone developed and created in the whole area of North Korea, according to the agreement between South and North Korea (hereinafter “KIC”) and requested the Defendant to re-consign the company to C, which is the Defendant’s subsidiary. Upon closure of the GIC around February 10, 2016 due to the aggravation of inter-Korean relations, the Defendant failed to provide the Plaintiff with clothes processed under the instant contract and failed to return the original materials provided by the Plaintiff.

Meanwhile, a person who intends to bring in or take out goods, etc. to the GIC is obligated to submit export/import declaration documents, etc. by applying mutatis mutandis the provisions on export/import (Article 17 of the GIC Support Act, Articles 241 and 245 of the Customs Act, and “related Acts and subordinate statutes” hereinafter). While the Defendant took out the raw and secondary materials of this case that the Plaintiff requested to process to C, it did not report the export of the raw and secondary materials of this case.

(e)The Government of the Republic of Korea acknowledges damage to current assets that have objective data to prove the fact of being shipped out of the Republic of Korea on the declaration of the relevant goods, etc. in accordance with the procedures set out in relevant laws and regulations after the closure of the GIC and confirms damage to current assets.