The appeal is dismissed.

The costs of appeal are assessed against the defendant, including the part arising from each supplementary participation.

The grounds of appeal are examined.

1. Review of the reasoning of the lower judgment on basic facts and the record reveals the following facts.

On May 27, 2009, the Defendant entered into a contract for the construction of a new building with the total contract amount of KRW 24,900,000 (the contract amount for the construction work among the construction work is KRW 23,245,600,000 (the construction work amount is KRW 23,245,60,000; hereinafter referred to as the “instant construction work”); June 1, 2009 on the commencement date; and November 30, 2010 on the completion date of the construction work (hereinafter referred to as the “instant contract”); as to the instant construction work, Company A (hereinafter referred to as “A”); as to the remainder of the fire-fighting work, Company G was the other party to the contract.

B. The general conditions of the construction contract included in the instant contract are as follows.

1) A et al., the other party to the contract, may not transfer to a third party any claim (right to claim the cost of construction) arising under this contract for any purpose other than the purpose of the implementation of this project (Article 5(1) and 5(1); hereinafter referred to as “the instant special agreement

(2) The Defendant may rescind or terminate the instant contract, in whole or in part, where it is deemed that there is no possibility for the Defendant to complete the construction by the deadline for completion due to a cause attributable to A, etc., the contractual party, etc., or where it is deemed that there is no possibility for the Defendant to perform the normal construction works due to a failure to perform the construction works by the due date

(Article 37(1)2 and 4). (c)

A was unable to complete the instant construction work on October 21, 2010.

On November 25, 2010, the Defendant expressed against A an intention to cancel the instant contract pursuant to Article 37 of the General Conditions of the said Construction Contract, and the said intent reached November 29, 2010.

On December 10, 2010, with respect to A, rehabilitation procedures commenced on December 10, 2010 and the rehabilitation plan is authorized, and on January 25, 2017, the rehabilitation procedures are decided on January 25, 2017.