1. The Plaintiff’s cancellation of the purchase contract between the Plaintiff and the Defendant on July 24, 2015, and the Defendant.

1. Basic facts

A. 1) The Defense Acquisition Program Administration, to which the Defendant belongs, entered into a contract to purchase goods between the Plaintiff and the Defendant.

On June 23, 2015, in order to be supplied with parts, etc. related to the tender announcement (hereinafter “instant tender announcement”) as follows.

- Item B - Quantity: 108,200 - Method of determining a successful tenderer: Total amount: Method of determining a successful tenderer: 2) the Plaintiff participated in the said tender and entered into a purchase contract with the Defendant for the purchase of goods between the contract price 2,610,98,64 won, contract bond 261,09,864 won, contract bond 261,09,864 won, 0.15% from the delivery date, 0.15% from December 18, 2015 to June 24, 2016 (hereinafter “instant contract”), and the Plaintiff entered into an insurance contract with the Defendant for performance guarantee of the instant contract with the C Co., Ltd. to pay the contract bond in lieu of the contract bond (hereinafter “instant contract”).

3) The General Conditions and Special Conditions applicable to the instant contract and the Act on Contracts to Which the State is a Party, which is applicable to the instant contract (hereinafter “State Contract Act”).

Of the contents of the Enforcement Decree of the same Act, those related to this case are as follows: A contracting officer of Article 1 (General Provisions) of the General Conditions and the other party shall include the purchase of goods ("manufacture") entered in the standard purchase contract.

(1) If the other party to the contract fails to perform his/her contractual obligations without justifiable grounds, the contract bond shall be reverted to the National Treasury, as stipulated in Article 26 (Cancellation or Termination of the contract due to any cause attributable to the other party to the contract).