1. The defendant's appeal is dismissed.

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

Purport of claim and appeal

1..

1. Basic facts

A. On July 18, 2011, the Plaintiff and us Co., Ltd. (hereinafter “Korea”) concluded a contract (hereinafter “instant contract”) on “(i) computerized management system building, the main country of our system,” which is an insurance-related comparison program (hereinafter “instant system”), with the amount of KRW 126 million.”

B. On July 18, 2011, the Plaintiff entered into a performance guarantee insurance contract with the Defendant as the insured (Advance payment) (Securities No. 100-0000-2011 027799) (Securities No. 100-2011), and us received the said guaranty insurance contract and paid the Plaintiff the down payment of KRW 63 million (excluding value-added tax) on July 20, 201.

C. In addition, on September 28, 2011, the Plaintiff entered into a performance guarantee insurance contract with the Defendant as the insured (Advance payment) (Securities No. 100-0000-2011 0371 3693), and India received the said guaranty insurance contract and paid the Plaintiff the intermediate payment of KRW 25.2 million (excluding value-added tax) on September 29, 2011.

On July 24, 2012, Schlage filed a claim with the Defendant for payment of insurance proceeds based on performance guarantee insurance on the ground that the Plaintiff failed to perform its contractual obligations under the instant contract, and the Defendant, upon self-examination, determined that “the Plaintiff was confirmed to have failed to perform the instant contract, and the Defendant cannot refuse payment of insurance proceeds because it cannot be attributable to the insured (Korean).” On February 1, 2013, Schlage paid to Schlage the total amount of insurance proceeds of KRW 88.2 million (=the intermediate payment of KRW 63 million).

E. The Plaintiff asserted that “In spite of the completion of the construction of the system under the instant contract, us refused to conduct an inspection and did not pay the balance of KRW 37.8 million,” and filed a lawsuit against us seeking payment of the remainder of KRW 37.8 million.

(Seoul Western District Court 2012Kadan5122). On August 14, 2014, the court of first instance dismissed the plaintiff's claim.