1. The plaintiff's appeal is dismissed.

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

Purport of claim and appeal

The first instance court.

1. Facts of recognition;

A. On February 2013, Co., Ltd. awarded a contract to the Defendant for a new construction of Busan Heavy Office Officetel (hereinafter “instant officetel”).

B. Around December 13, 2013, the Defendant subcontracted part of the instant construction of officetels (hereinafter “instant construction”) to the Plaintiff at KRW 456,50,000 (including value-added tax). The Plaintiff and the Defendant changed the construction amount to KRW 495,00,000 (including value-added tax) on August 29, 2014.

The Plaintiff and the Defendant agreed to pay the payment for the completed portion once a month to the Plaintiff at the time of the conclusion of the said modified subcontract (hereinafter “instant subcontract”), that the Defendant paid the payment for the completed portion to the Plaintiff within five days after receiving the payment for the completed portion from the Korea Asset Trust Co., Ltd. (Korean Asset Trust Co., Ltd. and the trust contract with respect to the instant officetel). As to the defect liability, the Plaintiff agreed to submit to the Defendant the guarantee certificate for the amount equivalent to 3% of the contract amount after the completion of the Plaintiff.

C. On May 13, 2016, the Plaintiff completed the remainder of the construction work excluding the portion of plastic asbestos project ( underground, commercial buildings, and stairs) (hereinafter “unconstruction project”). The construction cost of the said unconstruction portion is KRW 6,600,000 (including value-added tax of KRW 600,000).

The Plaintiff received a total of KRW 463,476,700 as stated in the following table for the construction cost from the Defendant.

The date when the plaintiff demanded the progress payment to the defendant is the date when the plaintiff demanded the progress payment.

On the date when the defendant received the progress payment from Korea Asset Trust Co., Ltd., the defendant received the progress payment.

The Defendant received progress payment from the Korea Asset Trust Co., Ltd. and paid progress payment to the Plaintiff.

Until 1/6 of the date of receipt of progress payment for the plaintiff, the plaintiff made progress payment from the defendant.