1.(a)

The Defendant-Counterclaim Plaintiff (Counterclaim Defendant) receives KRW 20,000,000 from the Plaintiff (Counterclaim Defendant).

1. Basic facts

A. On December 24, 2012, D entered into a lease agreement with the Defendant and the building listed in the attached Table (hereinafter “instant building”) by setting the lease deposit amount of KRW 20,000,00 for the leased deposit with respect to the size of 105.6 square meters in part (A) connected with each point in sequence, among the two floors of the building listed in the attached Table (hereinafter “instant building”) (hereinafter “instant building”), from October 24, 2013, from December 24, 2013 to October 15, 2014, the lease agreement was concluded by setting the lease agreement as the lease deposit amount of KRW 20,000,000 for the leased building (hereinafter “instant commercial building”).

(hereinafter “Lease of this case”). (b)

After completing business registration on December 26, 2012, the Defendant engaged in entertainment tavern business in the instant commercial building from January 1, 2013 to January 1, 2013, and the term of the lease was extended for one year as the instant lease contract was implicitly renewed on October 15, 2014.

(Article 10(4) of the Commercial Building Lease Protection Act. The Plaintiffs purchased the instant building from D on January 13, 2015, and completed the registration of ownership transfer (each share 1/2) on March 30, 2015, and succeeded to the lessor status of the instant lease.

The instant lease agreement was implicitly renewed on October 15, 2015, and the term of lease was extended by October 15, 2016, again until October 15, 2016.

C. On February 24, 2016, the Plaintiffs filed an application for a building permit with the competent authority (Seoul Special Metropolitan City Office) to remove the instant building and to newly build a new building (a scale of the underground first floor, the third floor, the total floor area of the 993m2) and obtain a building permit from the competent authority on March 3, 2016.

The Plaintiffs, around April 22, 2016, should newly build the instant building on a dial basis to the Defendant. As such, the Plaintiffs notified the Defendant of the intention not to extend the instant lease agreement by October 15, 2016. Accordingly, the Defendant, around May 16, 2016, demanded the Plaintiff to renew the instant lease agreement and allowed the Plaintiff to transfer the right of lease to the new lessee when requesting renewal of the instant lease agreement.