A. On November 17, 2015, the Plaintiff entered into a credit transaction agreement with D Co., Ltd. (hereinafter “Nonindicted Company”) with a period of three years and five percent (18%) per annum, and loaned KRW 200,000,000 to Nonparty Company.

B. Defendant B jointly and severally guaranteed Defendant B’s loan obligations within the limit of KRW 260,000,000, respectively, on November 17, 2015; Defendant C, on July 3, 2017.

C. From December 17, 2017, the non-party company lost the benefit of time due to delinquency in paying interest on the loan from E Fund (FFF) on June 20, 2018, the Plaintiff received 160,000,000 won out of the principal and interest of the loan from E Fund (E Fund guaranteed the loan obligations of the non-party company within the limit of 160,000,000 won under the joint and several surety of the representative director of the non-party company) and on June 25, 2018, the balance of the principal and interest of the non-party company as of June 25, 2018 (the principal amount of KRW 44,369,390 (the principal amount of KRW 40,00,000).

【Reasons for Recognition】 Each entry of evidence Nos. 1 through 7, and the purport of the whole pleadings

2. Determination

A. According to the above facts of determination as to the cause of the claim, the Defendants are jointly and severally liable to pay the Plaintiff the balance of the principal and interest within the limit of each guarantee amount as joint and several guarantors of the non-party company, unless there are special circumstances.

B. As to Defendant B’s assertion, Defendant B transferred 500 shares of the non-party company to Defendant C on July 1, 2017, and Defendant C succeeded to the status as a joint and several surety of Defendant B in lieu of payment of share price, it asserts that it is no longer in the position as a joint and several surety. However, the written evidence Nos. 1 and 2 are insufficient to acknowledge the fact that Defendant C succeeded to the status as a joint and several surety of Defendant B, and there is no other evidence, and thus, Defendant B’s assertion is without merit.

C. The Defendants are jointly and severally liable to pay to the Plaintiff the principal amounting to KRW 44,369,390 as well as the principal amounting to KRW 40,00,000 as from June 25, 2018 to the day of full payment.