1. The plaintiffs' claims are dismissed.

2. The costs of lawsuit are assessed against the plaintiffs.

Basic Facts

A. The Plaintiffs are companies running the building design and supervision service business, etc., and the Defendant is the reconstruction association which obtained authorization for the establishment of the housing reconstruction and improvement project association under the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents (hereinafter “Urban Improvement Act”) from the Daejeon-dong head on October 31, 2007 by making the total of 108,335.8 square meters of land outside Daejeon-dong and four parcels as the business site.

IV.(Calculation of Service Fees and Method of Payment) Payment Ratios of Time Payment

(a) 10% at the time of contract 258,470,000;

(b) Within three months after the contract for the commencement of construction works, 45 percent; 1,163,115,000;

(c) 30% 775,410,000 when the shop design drawing is supplied;

(d)At the time of approval for use 15 per cent 387,705,00 in total 2,584,700,000 of the design work cost shall be paid in cash in installments and the time of payment and the amount of payment shall be as follows:

(4) The design service amount to be paid by Gap (the defendant, hereinafter the same shall apply) to Eul (the plaintiff, hereinafter the same shall apply) shall be 60% to 40%.

Article 22 (Effect of Contract) (1) This contract shall become effective as from the date on which Gap and Eul are affixed with its seal and the approval of the general meeting is received in accordance with the provisions of the proviso of Article 13.

B. On March 27, 2009, the Plaintiffs entered into an architectural design agreement with the Defendant, setting the design service amount of KRW 2,584,700,000 (excluding value-added tax).

(hereinafter “instant contract”). Details pertaining to the payment of service costs and the validity of the instant contract are as follows:

C. The Defendant’s general assembly of the members did not accept the instant contract.

[Ground of recognition] Facts without dispute, entry of Gap evidence No. 3, fact inquiry results against the Daejeon Dong-gu Office of this Court, the purport of the whole pleadings

2. The parties' assertion

A. According to Article 4 of the contract of this case 1, the defendant is obligated to pay the down payment of KRW 258,470,000 at the time of concluding the contract, and the first intermediate payment of KRW 1,163,115 within three months after concluding the contract of the construction project.