1. All appeals by the Defendants are dismissed.

2. The costs of appeal are assessed against the Defendants.

3. The judgment of the court of first instance is ordered.

1. Basic facts

A. On April 2014, the Plaintiff was awarded a contract with the Defendants by the Korea Rural Community Corporation (Seoul metropolitan headquarters) for the improvement and repair works of farming convenience repair facilities (the third year; hereinafter “E District Civil Works”) and the third year for the improvement and repair works of repair facilities in preparation against disasters in the E District; hereinafter “F District Civil Works”).

It is called "each of the subcontracted works in this case", which is the major building works and reinforced concrete construction works.

The term of completion is December 20, 2014, and the construction cost is determined as specified in the table below, and "each of the subcontract agreements in this case" is referred to as "each of the subcontract agreements in this case to be subcontracted to the Defendants.

The subcontract of this case was concluded. The main contents of each of the following are as follows. The contract of this case are the subcontractor’s construction cost for the main contractor’s construction work (including value-added tax, 135,000,000 won for the soil work of Defendant CF district Co., Ltd., Defendant CF district civil engineering work of KRW 135,000,000 for the main contractor’s construction work of Defendant DF district civil engineering work of KRW 243,00,000 for the main contractor’s construction work of Defendant DF district civil engineering work of KRW 158,00,000 for the main contractor’s construction work

B. Around April 15, 2014, the Defendants commenced each of the subcontracted projects in this case, and suspended construction around October 2014.

C. On April 3, 2014, the Plaintiff received each advance payment of KRW 237,00,000 (an amount equivalent to KRW 49.83% of the total contract amount) from the Korea Rural Community Corporation, which is the ordering agency, as advance payment for the civil engineering works in the E District, and KRW 275,000,000 as advance payment for the F District Civil engineering works (an amount equivalent to KRW 551,89,000 of the total contract amount) on April 8, 2014.

As the advance payment of each of the instant subcontract agreements, the Plaintiff paid the Defendant C Co., Ltd. (hereinafter “Defendant C”) a total of KRW 78,000,000 (= KRW 11,000,000,000) on May 7, 2014, and KRW 67,000,000 on May 22, 2014, and KRW 67,000,000 (= KRW 67,00,000,000) to the Defendant Limited Company D (hereinafter “Defendant D”) on May 121, 2014 and May 7, 2014.