1. The instant lawsuit shall be dismissed.

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

1. Basic facts

A. On April 8, 2015, the office of education of Chungcheongnam-do entered into a contract with the Plaintiff, the school-affiliated company, and the space construction general accounts (the Plaintiff is the representative contractor; hereinafter the same shall apply) for the new construction works of the Macheon Middle School.

B. Around June 2015, the Plaintiff, the South-school, and the Space General Construction Co., Ltd. entered into a standard subcontract agreement for construction works with regard to reinforced concrete construction works among the construction works of Minecheon Middle School, which are the contract amount of 2,459,600,000 won, the warranty bond rate of 3%, and the warranty period of 5 years.

(hereinafter referred to as “instant subcontract”). (c)

Articles 23(1) and 25(1)2 of the terms and conditions of the instant subcontract agreement are as follows.

Article 23 (Security) (1) B shall pay to A the amount calculated by multiplying the contract amount by the rate of the warranty bond specified in the contract amount after the completion inspection and by the following certificate from the date of receiving the price for the construction:

Article 25 (Cancellation and Termination of Contracts A and B) (1) In cases falling under any of the following subparagraphs, A or B may cancel or terminate all or part of the relevant contract, if a contract is not performed within the specified period after giving written notice to the effect of a vow, fixing the period of (if) or (if the contract is not performed within the specified period after a written notice is given:

(2) Where a contract is rescinded or terminated due to any cause listed in each subparagraph of paragraph (1) of this Article, B shall pay a warranty bond for the completed portion to A pursuant to Article 23 (1).

On June 2016, the Plaintiff agreed on the instant subcontract agreement with the Defendant on behalf of South Korean academic enterprises and comprehensive space construction as follows:

(hereinafter referred to as the “instant agreement”). The name of the Gohap subcontracted project: the contract amount for the new construction works of the Gwangju Middle School / the contract amount of the steel reinforced concrete construction works: 2,459,600,000 won: from June 22, 2015 to July 7, 2016 for the instant subcontract contract.