1. Regarding the mechanical sales contract of January 15, 2016 between the Plaintiff (Counterclaim Defendant) and the Defendant (Counterclaim Plaintiff).

1. Basic facts

A. The Plaintiff is a juristic person operating industrial machinery manufacturing and selling business, etc., and the Defendant is a juristic person running wholesale and retail business such as compost and fertilizer.

B. On January 15, 2016, the Plaintiff entered into a contract with the Defendant to supply 305,000,000 won (excluding value-added tax) of Ragra C (Engine/self-stocks; hereinafter “instant machinery”) (hereinafter “instant supply contract”), and the main contents of the contract are as follows.

Article 2 (1) The plaintiff shall use high-quality materials in the manufacture of the product, and shall guarantee that the quality and performance are completely maintained and there is no defect.

Article 2 (2) The plaintiff shall be responsible for product liability and repair for defects in the process of manufacturing goods.

Article 2 (3) The plaintiff shall accept quality assurance and A/S free of charge for 12 months.

Provided, That in cases of natural disasters, expendable parts, care for users, or injecting foreign substances which cause serious damage to machinery in excess of the volume, or machinery, it shall be repaired with compensation even during the period of free repair.

C. Around February 2016, the Plaintiff supplied the instant machinery to the Defendant in accordance with the instant supply contract, and the Defendant paid the machinery price to the Plaintiff in full.

In addition, from February 20, 2016 to February 19, 2018, the Plaintiff issued the warranty insurance policy to the Defendant with the insurance amount of KRW 30,500,000.

E. On December 9, 2016, the Defendant sent to the Plaintiff a document stating that if the defect repair of the instant machine is not carried out, the Defendant would claim the defect guarantee insurance benefit.

[Reasons for Recognition] Facts without dispute, Gap evidence 1, 2, 3, 7-1, 2-2, and the purport of the whole pleadings

2. The plaintiff's main assertion that the defendant asserted the defects of the machinery of this case continues fuel consumption, noise and abnormal noise generation, cooling water supply, fuel oil distribution at the time of transition of the steel section and direction-setting.