A. On December 21, 2015, the Plaintiff entered into a subcontract agreement with C Co., Ltd. (hereinafter referred to as “C”) with the content that the incidental civil engineering works (hereinafter referred to as “the subcontracted works”) among the prime contract for the instant prime contract for the subcontracted works (hereinafter referred to as “the subcontracted works”) will be executed by setting the contract amount of KRW 202,40,00 (including value-added tax) as the contract period from December 21, 2015 to January 31, 2016. Article 1 (Guarantee Liability) of the Subcontract Terms and Conditions for Subcontract’s payment guarantee (hereinafter referred to as “guarantee”) fails to meet the obligation to pay the subcontract price stated in the guarantee agreement to the Plaintiff (hereinafter referred to as “guarantee accident”). The Defendant shall pay to the Plaintiff the obligation (limited to the obligation within the guarantee period) in accordance with the terms and conditions.

Article 3 (Limits of Performance of Guaranteed Obligations) The security deposit to be paid by the Defendant shall be the amount recognized in accordance with the standards of Article 7 from among the construction charges incurred by the Plaintiff from the date of commencing the guarantee period to the date of performing the contract stated in the letter of guarantee, within the limit of the security deposit stated

The amount recognized as a subcontract work resulting from the actual execution of Article 7 (Standards for Recognition of Validity in the event of a Guarantee Accident) shall be based on the test of completedness performed by the ordering person (in the case of a self-project supervisor) of the original contract in order to determine the completion of the construction work of C.

B. On January 12, 2016, the Defendant entered into a guarantee agreement with C to guarantee the payment of the instant subcontract price to the Plaintiff (hereinafter “the instant guarantee agreement”) with C, setting the guarantee amount as KRW 202,40,000, the guarantee amount from December 21, 2015 to April 30, 2016, and setting the guarantee amount as KRW 202,40,000.

The main contents of the subcontract payment guarantee agreement applicable to the instant guarantee agreement are as follows.