1. All of the plaintiffs' claims are dismissed.

2. The costs of lawsuit are assessed against the plaintiffs.

Details of the disposition

Plaintiff

A Co., Ltd. (hereinafter referred to as the “Plaintiff Co., Ltd.”) is a company that develops and manufactures security IP cameras, video processing copiers, storage devices, etc., and Plaintiff B is the representative director of the Plaintiff Co., Ltd.

Plaintiff

On December 2, 2016, the Company entered into an agreement for the performance of the above task (hereinafter “instant agreement”) with C (hereinafter “the Foundation”) that is delegated by the Defendant to carry out research and development projects as the name of the task, and entered into the said agreement for the execution of the task (total implementation period: from December 26, 2016 to December 25, 2017; hereinafter “instant agreement”). The relevant major contents of the agreement are as follows.

Article 3 (Payment of Project Funds) - Government contributions 200,000 won in the second year of the year of the separate project cost of the Convention - Cash 7,000 won in kind - KRW 63,000 in kind - KRW 70,000 - KRW 270,000 in total - Article 3 (Payment of Project Funds) 1 The Foundation shall pay the Government contributions out of the project cost of the instant task in this case to the deposit account recorded in the Project Costs Request (hereinafter referred to as the "Management Account") that is submitted at the time the Plaintiff Company signs

Article 4 (Management and Use of Project Funds) (1) Pursuant to the regulations on the management of research and development projects in the fields of science and technology under the jurisdiction of the Ministry of Science, ICT and Future Planning, a plaintiff company shall establish a separate account so that it may prove the accounting management used after receiving contributions from the Government or persons other than the Government, the participant enterprise's charges, etc. separately from funds for other purposes, and the deposit interest shall be used for research and development re-investment and other similar purposes only:

(2) The amount which the Plaintiff Company has failed to prove out of the amount of project expenses under paragraph (1), the standards for appropriation of project expenses by item in attached Table 3, and the method of direct use by item in attached Table 5, and the project expenses by item in paragraph (3).