1. Of the instant lawsuit, the management contract between the Plaintiff and the Defendant A apartment council of occupants’ representatives is concluded on November 26, 2014.

Basic Facts

Article 13 (Termination of Contract) (1) A and B (referring to the defendant's representative council in case of A, and the plaintiff in case of B; hereinafter the same shall apply) may terminate the contract when any of the following grounds arises, and may claim compensation for damage resulting therefrom:

1. When he/she prepares and submits false documents concerning his/her financial status, housing managers, technical human resources, equipment, etc.;

2. Where Eul concludes a contract by illegal means, such as offering money and valuables, etc.

3. Where the registration of Eul is cancelled or all or part of the business (limited to the collective housing of Eul) is suspended;

4. Where A or B fails to perform the contract without any special reason.

5. When the management expenses, etc. are embezzled, the Plaintiff is a housing management operator registered under the Multi-Family Housing Management Act.

On November 26, 2014, the Plaintiff and the Defendant A apartment council (hereinafter referred to as the “Defendant’s representative council”) entered into an entrusted management agreement with regard to the apartment housing and its incidental facilities and welfare facilities (hereinafter referred to as the “instant entrusted management agreement”) with respect to the Suwon-si apartment (hereinafter referred to as the “instant apartment”). The contract term under the instant entrusted management agreement is from January 1, 2015 to December 31, 2016, and in particular, the details on the termination of the contract are as follows:

On May 3, 2016, the defendant's council of occupants' representatives decided to hold a temporary council of occupants' representatives and terminate the instant entrusted management contract.

The Defendant’s council of occupants’ representatives, on May 4, 2016, intended to appropriate the Plaintiff’s expenses for service agreements on local heating works, ② to withdraw KRW 440,00 under the name of the employee meeting without the resolution of the council of occupants’ representatives, ③ to issue a tax invoice under the name of the former president, ④ to refuse the Defendant’s request for replacement of the head of the management office several times, and ⑤ to deduct the management expenses at the time of the occupant transfer from KRW 466,260.