1. Article 530-9(1) of the former Commercial Act (amended by Act No. 13523, Dec. 1, 2015; hereinafter the same) provides that “A company established through division or merger through division or a company surviving division or merger through division is jointly and severally liable for the obligations of the company before division or merger through division.”

The term “company’s obligations before a division or a merger after division” refers to not only a debt that occurred before the division or a merger after division takes effect but also a debt that has already occurred before the division or a merger after division takes effect (see Supreme Court Decision 2010Da71660, Dec. 23, 2010). According to the reasoning of the lower judgment and the evidence duly admitted by the lower court, the Plaintiff’s credit guarantee agreement between B Co., Ltd. (hereinafter “B”) on October 27, 2003 and the guaranteed amount of KRW 170,00 and the guaranteed amount of KRW 170,000,000,000 were extended from October 27, 2003 to October 26, 2004 (hereinafter “the first credit guarantee agreement”) and the amount extended from KRW 208,000,000 to KRW 1700,0000,000,000 within the guarantee period of KRW 200,000.2.