Of the part of the lower judgment against the Plaintiff, the amount of KRW 150 million for loans on July 29, 2009 and the part against the Defendants shall be zero.

The grounds of appeal are examined.

1. Judgment on the Plaintiff’s grounds of appeal

A. (1) As to the grounds of appeal on damages for delay in the amount of KRW 419,529,450, where the contractual parties prepare in writing a disposal document, barring any special circumstance, where the objective meaning of the text is clear, the existence and content of declaration of intent should be recognized as well. Where the objective meaning of the text is not clearly revealed, it shall be reasonably interpreted in accordance with logical and empirical rules so as to conform to the ideology of social justice and equity, by comprehensively taking into account the contents of the text, motive and circumstance of the agreement, the purpose to be achieved by the agreement, the parties’ genuine intent, etc.

(See Supreme Court Decisions 93Da3103 delivered on October 26, 1993; 2002Da6753 delivered on June 11, 2002, etc.). (2) According to the reasoning of the lower judgment and the evidence duly admitted, the following facts are revealed.

(A) Defendant B obtained a loan from the Ministry of Agriculture and Forestry for a total of KRW 5 billion in total and agreed to newly construct a “E farm” (hereinafter “E farm”) on two parcels, including D, Gyeong-gun, Busan-gun, and 12. On July 18, 2008, Defendant B entered into a contract with the Plaintiff on the following terms: (a) the construction cost of the E farm was KRW 6.155 billion (including value-added tax); (b) the construction period was from July 30, 2008 to December 10, 2008; and (c) the payment method of the progress payment was within seven (7) days after the date of the establishment of the foundation; (b) the construction cost was within fifteen (15) days after the completion of the construction; and (d) the remainder payment within fifteen (15) days after completion of the construction.

(hereinafter “instant contract”). Meanwhile, Article 19(3) of the “General Terms and Conditions of the Standard Contract for Private Construction Works” incorporated into the terms and conditions of the instant contract applies to a commercial bank’s general loan out of the number of days following the due date for payment where the contractor fails to pay the unpaid amount within the due date for payment.