1. The Plaintiff (Counterclaim Defendant) paid KRW 89,643,909 to the Defendant (Counterclaim Plaintiff) and its amount from September 2, 2016 to May 31, 2019.

A principal lawsuit and a counterclaim shall be deemed simultaneously.

1. Basic facts

A. The status of the party is a juristic person whose purpose is to construct machinery and equipment, gas equipment, construction business, etc., and the defendant is a juristic person whose purpose is to operate valves, fire-fighting and piping materials wholesale business, construction and installation works, etc.

B. On February 11, 2015, the Defendant and C Co., Ltd. (hereinafter “C”) entered into a contract with the Defendant and C Co., Ltd. (hereinafter “C”) on a set period of construction from C to February 3, 2016, regarding D Center-2 construction sections (hereinafter “instant construction works”).

C. On August 21, 2015, the Defendant entered into a subcontract on August 21, 2015 with the terms that the Defendant contracted to the Plaintiff for the construction work of the instant subcontracted work (including subsidiary materials for installation; hereinafter “the instant subcontracted work”). The main contents are as follows.

(hereinafter referred to as “instant subcontract agreement. Construction period: From August 21, 2015 to January 31, 2016: The performance guarantee rate of KRW 517,00,000 (including value-added tax): Article 4 of the contract term of KRW 51,700,000 (hereinafter “the contract term of the instant subcontract”): The Plaintiff shall deposit the amount equivalent to 10/100 of the contract amount with the Defendant in cash or as the performance guarantee insurance policy (E) in order to guarantee the performance of the contract.

Article 12 [Cancellation and Termination of Contracts] When it is deemed that the plaintiff is unable to perform the contract falling under any of the following subparagraphs, the defendant shall confiscate the performance guarantee under Article 4 as penalty:

(2) When the performance of a contract has been suspended without justifiable grounds;

D. On January 4, 2016, the first Defendant’s consultation with regard to additional personnel input and the extension of the construction period of the instant construction works were urged to promptly perform the subcontracted construction work. To this end, the first Defendant, on January 4, 2016, intended to additionally employ human resources at the site of the subcontracted construction work, but the personnel expenses, accommodation expenses, and food expenses for the additional inputs.