1. The Defendant (Counterclaim Plaintiff) paid KRW 110,00,000 to the Plaintiff (Counterclaim Defendant) and its related amount from April 16, 2013 to April 21, 2014.

The summary of the case at issue is the case that the Plaintiff sought damages equivalent to the amount of KRW 299,702,109, which was incurred due to the Plaintiff’s failure to return advance payment KRW 110 million and to normally operate shopping malls, by asserting that: (a) the error of points linkage; (b) the error of membership linkage; (c) the error of order data linkage; and (d) the error of distribution information linkage related to Escow settlement; and (c) the Defendant’s failure to correct the error and rescinded the service contract on the grounds of the Defendant’s fault; and (d) the Defendant’s failure to return advance payment KRW 100,000 and cancel the service contract on the grounds of the Defendant’s fault.

The counterclaim case is a case where the defendant claims payment of KRW 107,360,000 for the cost of maintenance and repair under the shopping mall maintenance contract, which is separate from the service contract, because the defect of the shopping mall claimed by the plaintiff was derived from the plaintiff's request for additional work not included in the original service contract or from the defendant's responsibility. Thus, the plaintiff's cancellation of the contract is unreasonable and the defendant claims payment of KRW 12,100,000 for the remainder of payment

In fact, on February 1, 2013, the Plaintiff entered into an online shopping mall establishment and ERP-based development contract between the Defendant and the Plaintiff on February 1, 2013, with respect to the development of the online shopping mall in the children’s clothes magach site (the purpose of this contract) operated by the Plaintiff, the contract sets forth the rights and obligations between the Plaintiff (the Defendant) in manufacturing and delivering the subject matter of the contract, which is required by the Plaintiff (the Plaintiff).

(2) The scope of development of services is linked to the basic shopping mall functions (such as management of the Fron design, display and management of the goods and props, exhibition and delivery of orders, delivery, settlement of accounts, CS management, etc.) of shopping mall (the scope of development of services).