1. Of the principal lawsuit in the judgment of the court of first instance, the Plaintiff (Counterclaim Defendant) corresponding to the amount ordered to pay under the following two paragraphs.

A principal lawsuit and a counterclaim shall be deemed simultaneously.

1. Basic facts

A. On September 30, 2014, the Defendants started construction work on the D-Sinpo City, Seopo-si, a detached house for the purpose of penture and carpet (hereinafter “instant building”). On July 10, 2015, the Defendants entered into a construction contract with the Plaintiff with the construction cost of KRW 12 million with respect to the water supply, sanitation, heating and boiler construction of the instant building (hereinafter “instant construction contract”).

B. On July 10, 2015, the Defendants paid the Plaintiff the total construction cost of KRW 8 million up to August 21, 2015, including paying the down payment of KRW 2 million to the Plaintiff.

C. Around October 2015, the Plaintiff started construction and completed the instant construction contract. The Defendants completed the instant building on or around December 17, 2015, and obtained approval for use.

[Ground for recognition] Unsatisfy

2. According to the above facts of recognition as to the cause of the principal claim, the Defendants are obligated to pay the Plaintiff the remainder of the construction cost of this case 4 million won and damages for delay, unless there are special circumstances.

3. Determination on the defendants' defenses and counterclaims

A. The gist of the Defendants’ assertion was that the instant construction was carried out, and the Plaintiff incurred defects, such as the non-construction of water pipes 20 meters wide water pipes, the number of the second floor toilets, the construction of the 1st female toilet water pipelines, the construction of the male urinals, and the excessive claim for the purchase of boiler.

Accordingly, the Defendants already spent KRW 5,299,000 for the construction cost of defect repair, and in the future, it is anticipated that the additional construction cost incurred from the defective construction of female toilets for the first floor would be required to be KRW 3,025,000 for the additional construction cost. Accordingly, the damages claim in lieu of the above defect repair shall be offset against the Plaintiff’s claim for the construction cost of KRW 4,000 for the amount equal to that of KRW 4,324,00 for the damages in lieu of the defect repair, and the Plaintiff is obliged to pay the remainder of KRW 4,324

(b) the part concerning reclamation of water pipes and non-construction of connecting 120m-meter water pipes per item.