1. The plaintiff's claim is dismissed.

2. The costs of lawsuit shall be borne by the Plaintiff.

1. Basic facts

A. The Plaintiff is a company that manufactures rubber products, etc. in its trade name, while the Defendant is a company that manufactures rubber products.

B. At the time of June 20, 2016, the Defendant entered into a contract with the Plaintiff for the manufacture of rubber production facilities (Evidence 1) for automation of rubber products produced by the Defendant. However, the Defendant’s contract with the Plaintiff to complete the installation and supply within 90 days from the contract date, including the production and installation of rubber products, and the payment period of KRW 232,00,000 (value-added tax separate).

(hereinafter referred to as the “instant contract” and to make machinery products are referred to as the “instant facilities, etc.” (hereinafter referred to as “instant contract”).

In August 2016, the Plaintiff installed part of the instant facilities in the Defendant’s new factory in the first place. On September 2016, the Plaintiff was conducting a trial run in the Defendant’s early September 2016, and the instant facilities failed to meet the Defendant’s demand and make it impossible to manufacture rubber parts by automated equipment in the Defendant factory. During that process, the Plaintiff and the Defendant were engaged in various attempts, such as remodelling the instant facilities manufactured in the second place heating system through mutual dialogue, and making efforts for commercialization in various aspects. However, the instant facilities were not commercialized as facilities for the Defendant Company’s automation of rubber products for the lapse of five months.

According to the payment terms stipulated in Article 3 of the instant contract, the Defendant shall pay the Plaintiff the down payment of KRW 69,600,000,000 after receiving the contract performance guarantee certificate from the Plaintiff, and shall pay the remainder KRW 162,40,000 when reaching the performance recognized by the Defendant following the trial run.

However, notwithstanding the above provisions, the Defendant paid to the Plaintiff the down payment of KRW 69,600,000, and KRW 50,000 at the Plaintiff’s request, thereby paying a total of KRW 119,60,000 in relation to the instant contract. Accordingly, the remainder is remaining in the remaining condition.