1. The plaintiff's claim is dismissed.

2. The costs of lawsuit shall be borne by the Plaintiff.

1. Basic facts

A. On February 18, 2010, the Defendant and the Masan Industrial Co., Ltd. concluded a contract for construction work with the E.S., designated as a project implementer for the development of a housing site in the district of the planned housing complex located in the Guro-gu Seoul Special Metropolitan City-dong Seoul Special Metropolitan City National Rental Housing Complex (hereinafter “instant housing complex”). As to the instant housing complex construction work (hereinafter “instant construction work”), the contract amount was KRW 13,182,186,830 (including value-added tax, and the final contract amount was KRW 20,016,200,000).

B. On October 8, 2012, the Defendant entered into a subcontract agreement with the Plaintiff on the part of the instant construction project (hereinafter “instant subcontract agreement”) with the content that the instant construction project requires subcontracting of KRW 1,037,219,533 (including value-added tax) among the instant construction project.

(c) The definitions of terms used in this Act, as defined in subparagraph 3 of Article 2 of the Housing Act, shall be as follows:

3. The term "national housing" means a house constructed or improved under a support of funds from the National Housing Fund under Article 60, the area of which used exclusively for the residential purpose (hereinafter referred to as "exclusive residential area") is not more than 85 square meters per family or household;

(hereinafter omitted) National housing defined in the Act (hereinafter referred to as "national housing") includes housing not exceeding 85 square meters per house or household (a house with an exclusive residential area of less than 1 or household).

Accordingly, while entering into the instant contract, the Plaintiff and the Defendant are exempt from value-added tax on the supply of goods or services falling under any of the following subparagraphs under Article 106(1)4 of the Restriction of Special Taxation Act (Article 106(1)4 of the Restriction of Special Taxation Act):

(hereinafter omitted)

4. National housing prescribed by Presidential Decree, and construction services for such housing, and Article 106 (4) of the Enforcement Decree of the same Act;