The plaintiff's claim is dismissed.

Litigation costs shall be borne by the plaintiff.

Basic Facts

The Plaintiff is a cooperative established to implement a housing redevelopment and improvement project (hereinafter “instant project”) in Seo-gu Seoul Special Metropolitan City, Seo-gu Seoul Special Metropolitan City (hereinafter “instant project area”) 51,447.2 square meters.

On August 21, 2009, the Plaintiff obtained authorization for the establishment of an association from the head of Seo-gu Incheon Metropolitan City pursuant to Article 16 of the former Act on the Maintenance of Urban and Residential Environments (amended by Act No. 10268, Apr. 15, 2010; hereinafter “Act”) and completed the registration of establishment on August 24, 2009.

On December 15, 2009, the Plaintiff and the Defendant entered into a service contract with the Defendant to provide services, such as relocation management, removal of obstacles, and disposal of construction wastes, and to pay the Defendant totaling KRW 3,243,93,00 to the Defendant (hereinafter “instant service contract”).

The above service contract includes the following provisions:

Article 17 (Contract Guarantee) (1) The Plaintiff may request the Defendant to submit a performance guarantee insurance policy to guarantee this contract before paying the down payment.

(2) The period of the defendant's performance guarantee shall be from the date this contract is concluded to the expiration date.

Article 19 (Termination of Contract) (1) The plaintiff may cancel or terminate all or part of this contract in cases where the defendant falls under any of the following subparagraphs:

(a) Where it is deemed impossible to complete the service within the service period or to complete the service by the service deadline due to reasons not attributable to the plaintiff;

G. If the Defendant breached the terms of this contract, the Plaintiff paid KRW 356,832,629 (including value added tax) to the Defendant on March 31, 2010 and KRW 160,574,683 on April 26, 2010, respectively, and paid KRW 356,832,629 (hereinafter “the instant down payment”). The Plaintiff revoked the authorization for the establishment of the Plaintiff.