1. The defendant's appeal is dismissed.

2. The costs of appeal shall be borne by the Defendant.

Purport of claim and appeal

1...

1. Facts of recognition;

A. On May 7, 2014, the Plaintiff and the Defendant (the Defendant changed the name of the Defendant from the Goyang Integrated Construction Co., Ltd. to the Goyang Integrated Construction Co., Ltd., Ltd., on August 3, 2015, but changed to the Goyang Integrated Construction Co., Ltd., Ltd., again on August 3, 2015), constituted a joint supply and demand organization (51% of the Plaintiff’s shares, Defendant shares, 49% of the Defendant shares) that determines the Plaintiff as the representative company, and concluded a contract with the Seoul Special Metropolitan City for a construction project of approximately KRW 15 billion of the total contract amount (hereinafter “the instant construction”) and completed the instant construction around August 2016.

B. The Plaintiff and the Defendant concluded a joint supply and demand management agreement (hereinafter “instant agreement”) for the operation of the joint supply and demand organization and the progress of the instant construction project, with three on-site employees, each of whom shall be appointed as the representative staff, and the Plaintiff’s employees, the representative director, entrusted the instant construction work.

The contents of the instant agreement relating to the instant case are as follows.

Part 1 of the General Provisions of Chapter 2 (Time of Application) This Convention shall, in principle, apply from the commencement date of construction to the completion date of defect repairs.

Article 3 (Representative of Business) (1) The plaintiff shall represent its members until the performance of duties to the project owner is completed.

(2) The representative shall request the payment of construction costs and manage the property belonging to joint contractors.

(3) A representative may request the remaining members to take necessary measures for the formulation of a work plan, decision on the method of execution, processing affairs and quality and safety management, design modification, and other business affairs (employee placement, expense, etc.) necessary for the completion of an object of construction.

Article 4 (Apportionment of Affairs by Joint Subcontractors) (1) The ratio of shares held by each member in the formation of joint contractors shall be as follows:

Plaintiff

In principle, 51% for the defendant, 49% for the material management in Chapter 4, Article 19 (Purchase of Materials) (1) for the main materials shall be purchased according to the representative's purchase method, and other miscellaneous materials shall be purchased on the spot with the approval of the head of the field office.

(2) Payment of the price for purchase of materials.