1. Between the Plaintiff and the Defendant, as of June 22, 2015, the “Do New Construction Project” on the ground of the two lots outside Seopo-si, Seopo-si, and Jeju-do.

1. Basic facts

A. On June 22, 2015, the Plaintiff (contractor) entered into a contract with the Defendant (contractor) for the construction cost of KRW 3.3 billion (including value-added tax) and the construction period of construction from July 1, 2015 to March 20, 2016 (hereinafter “instant contract”).

B. On July 1, 2015, the Defendant subcontracted the instant construction to the Intervenor A, and the Intervenor Intervenor A undertaken the construction.

C. The instant construction was interrupted by the time the initial completion period was expired, and the Plaintiff notified the Defendant of the cancellation of the instant contract on May 18, 2016, and the Defendant also requested the Defendant to settle the contract with the consent of the Plaintiff and the progress payment on May 23, 2016.

[In the absence of dispute, Gap 1 through 3 (including paper numbers), Gap 5-1, 2]

2. The construction cost to be paid by the Plaintiff to the Defendant according to the Plaintiff’s assertion of the cause of the claim is KRW 1,584,660,00. The Plaintiff paid a total of KRW 1,509,350,000 to the Defendant.

Meanwhile, the cost of defect repair to be paid by the Defendant to the Plaintiff is KRW 71,857,591.

Therefore, the remaining amount of the Plaintiff’s obligation to the Defendant related to the instant construction project is KRW 3,452,409 ( KRW 1,584,660,000 - KRW 1,509,350,000 - KRW 71,857,591).

3. Determination

A. It is recognized that the Defendant incurred defects such as indicated in the separate sheet while executing the instant construction, and that the cost of repairing defects requires KRW 71,857,591 (excluding value-added tax) at the cost of repairing defects (Article 71,857,591). Therefore, the Defendant is obliged to pay the Plaintiff KRW 71,857,591 at the cost of repairing defects.

(Plaintiffs are not separately seeking value-added tax). (B)

The instant contract between the Plaintiff and the Defendant was rescinded on May 2016.

Results of appraiser E’s appraisal.