1. The plaintiff's claim is dismissed.

2. The costs of lawsuit shall be borne by the Plaintiff.

1. Presumed factual basis

A. The Plaintiff is a company established by the companies, such as Samhwawait, etc. (hereinafter collectively referred to as the “participating companies of this case”), for the purpose of approving a cooperative movement plan under the former Promotion of Small and Medium Enterprises and Encouragement of Purchase of Their Products Act, managing and guiding the cooperative movement project enterprises, purchasing and managing the site for the cooperative movement project, the affairs concerning the construction of sites for the cooperative movement project and the sale of lots, the affairs concerning the approval of the establishment of joint factories, the affairs concerning the construction of factories of participating companies, and support affairs related to loans.

B. On September 17, 2008, the Plaintiff awarded a contract to the Defendant for the construction of the site for the instant business complex (hereinafter “instant construction”) at KRW 3,575,00,000 (including value-added tax; hereinafter the same shall apply) and set the liquidated damages at KRW 1/1,000 per day.

C. On August 29, 2009, the Plaintiff again awarded a contract to the Defendant for the retaining wall, water tank, water tank, waterworks, pent, and septic tank construction (hereinafter “the instant additional construction”) in KRW 805,049,457, but excluded the pents construction equivalent to KRW 105,60,000 by agreement with the Defendant.

Even at the time of the instant additional construction contract, the original Defendant set the penalty for delay at 1/1,00 of the construction cost per day.

On November 30, 2009, the Plaintiff and the Defendant agreed to complete the instant main construction and the instant additional construction (hereinafter collectively referred to as “instant construction”) by May 31, 2010.

E. Around June 2010, the Defendant suspended the instant construction work without left the details of the non-execution as follows.

Items 43,125,890 24,155,387 purification door 1 non-construction 280,166 lids of non-construction 1,004,166 lids of non-construction 1,004,191.