1. All claims filed by the Plaintiff (Counterclaim Defendant) and the counterclaim claims filed by the Defendant (Counterclaim Plaintiff) are dismissed.

2. The costs of lawsuit;

1. The principal lawsuit and counterclaim shall also be deemed to exist;

A. The Plaintiff was awarded a contract with the Defendant for detailed construction as indicated in the following table among the facility construction works for the modernization of the integrated water purification plant in Cheongju-dong, Cheongju-dong, 10-1 located in Cheongju-si. Around that time, the Plaintiff concluded a provisional contract with the amount of construction cost of KRW 2.51,0210,000 (hereinafter “instant earth and sand construction”) and performed the earth and sand construction (hereinafter “instant earth and sand construction”).

(1) The Plaintiff and the Defendant collectively conclude a subcontract agreement regarding each of the instant construction works (hereinafter referred to as “instant construction works,” in total, including the construction works executed in accordance with each of the instant contracts). The first reinforced concrete construction works for the construction period of one year (hereinafter referred to as “the first reinforced construction works”) prior to the date of entering into the contract for the construction works (hereinafter referred to as “instant construction works”) shall be KRW 464,78,500 on January 18, 2013 (referring to the change of the construction cost to KRW 611,90,000 on July 27, 2013) from January 18, 2013 to June 30, 2014 (hereinafter referred to as “the second reinforced reinforced construction works”) from March 15, 2013 to June 30, 2014 (hereinafter referred to as “the second reinforced construction works”)

B. On June 11, 2014, the Plaintiff sent to the Defendant an official document stating that “The Plaintiff, as a result of the failure to pay the progress payment related to the instant construction works, faces business difficulties, and thus, paid the progress payment of KRW 324,456,820 for the period from February to April, 2014,” and again, sent a letter verifying contents to the effect that “the Plaintiff shall request the payment of the progress payment of KRW 504,856,790 for the period from February to May, 13 of the same month.”

C. On July 30, 2014, the Defendant issued a public notice to the effect that “the progress of the instant construction works is more appropriate for the smooth implementation of the construction works.”