1. The Defendant’s KRW 22,00,000 as well as 20% per annum from June 10, 2015 to September 30, 2015 to the Plaintiff.

1. Basic facts

A. The defendant is running a profit-making business to achieve its purpose as a nonprofit incorporated association with the aim of improving the quality of life for the disabled by promoting social awareness improvement, expansion of social participation, rights and interests, and self-reliance for the disabled.

B. Under the Act on Contracts to Which the State is a Party (hereinafter “Act”), the head of each central government agency or the public official in charge of contracts shall enter into a contract by general competitive bidding in order to place the contract: Provided, That where it is deemed necessary in view of the purpose, nature, size, etc. of the contract, the eligibility to participate in the contract may be restricted, designated participants may be put into competitive bidding, or a negotiated contract may be concluded, as prescribed by Presidential Decree (Article 7(1)). The Enforcement Decree of the Act provides that “only where a contract is concluded with an organization, etc. established for the purpose of providing jobs, veterans, welfare services, etc. to the persons of distinguished services to the State or the persons with disabilities, etc., or directly selling or leasing goods to such organization, etc.” (Article 26(1)4) may also be concluded under the proviso to the aforesaid provision.

C. Around 2009, Defendant (the representative director B) entered into an agreement with the Luxembourg Center (hereinafter “Luxembourg Center”) for a joint project with the following contents as part of the purpose of its establishment and the profit-making business pursuant to the Act. In order to carry out the above joint project, the Defendant’s affiliated organizations were to operate the new technology business division as an affiliated organization of the Defendant.

1) The defendant shall, under his responsibility, authorize the Luxembourg to the goods of the disabled organization or the organization for the disabled as prescribed by the Enforcement Decree of the Act (LED lighting, landscape lighting, RFID, various new technology products, etc.). The Luxembourg shall invest all the required funds in its management officer.