A. On June 2015, the Korea Rural Community Corporation (hereinafter “Korea Rural Community Corporation”) selected Nonparty F Co., Ltd. (hereinafter “Nonindicted Company”) as a private business entity engaging in the E complex development project in the Jinjin-si Dri-si.

B. On February 26, 2016, the Korea Rural Community Corporation and the non-party company entered into a project agreement for the implementation of the above development project (hereinafter “the project agreement in this case”). According to the project agreement in this case, the non-party company shall pay to the Korea Rural Community Corporation the performance bond of KRW 2.133 billion equivalent to the 3% of the project cost of the first stage project, in cash or in any equivalent guarantee, etc., and if the non-party company fails to pay the performance bond of the contract by the agreed payment deadline, the Korea Rural Community Corporation may terminate the project agreement in this case. In this case, the performance bond of the agreement is reverted to the Korea Rural Community Corporation.

C. On April 18, 2016, the non-party company paid KRW 100 million out of the performance bond to the Korea Rural Community Corporation, and around May 13, 2016, the Plaintiff and the insured entered into a performance guarantee insurance contract with the Korea Rural Community Corporation, the insurance period from February 26, 2016 to December 31, 2018, and the amount of insurance KRW 1,125,000,000 (hereinafter “instant performance guarantee insurance contract”) and submitted it to the Korea Rural Community Corporation (hereinafter “instant performance insurance contract”).

At the time of entering into the instant guarantee insurance contract, Nonparty G, Defendant, and Nonparty H jointly and severally guaranteed the obligations of Nonparty Company against the Plaintiff.

The provisions of Article 4 of the Guarantee Insurance Agreement are as follows. The interest rate on delay damages publicly announced by the Plaintiff is 6% per annum from the day following the date of payment of insurance proceeds until 30% per annum, and 9% per annum thereafter.

Article 4 (Compensation for Loss and Bearing of Expenses) (1) A company which fails to perform its obligation or obligation guaranteed by it (hereinafter referred to as "insurance accident") to the insured.