A. On June 25, 1997, a new comprehensive financial company (hereinafter “new comprehensive financial company”) lent KRW 48.8 billion to Kudong Construction Co., Ltd. (hereinafter “ Kudong Construction”). Overcheon Industrial Development Co., Ltd. (hereinafter “Defendant”) changed to the Defendant on February 19, 2004; hereinafter “Defendant”) jointly and severally guaranteed the above loan obligation of Kudong Construction.

B. On March 5, 1998, the construction of extreme Dong applied for commencement of the company reorganization procedure and disposition of preservation of property in this court on July 6, 1998, and the decision of commencement of the company reorganization procedure was made by this court on July 6, 1998, and the new comprehensive financing was recognized as the primary obligation of reorganization claim upon reporting credit.

On May 20, 2003, a company reorganization plan, which is premised on the change of rights, was submitted to this court for approval of the revised plan.

At the time of the submission of the modified plan, the new comprehensive finance exempted the interest of KRW 41,896,617 from May 20, 2003 after the commencement of the claim amount of KRW 12,974,896,617 of the principal debt of the reorganization claim at the time of the submission of the modified plan. On May 22, 2003, it was temporarily paid KRW 6,792,886,000 for cash and KRW 5,564,880,048 for the remaining bonds and KRW 5,564,80,000 for each share ( KRW 5,00 for each share) in lieu of the repayment of the plan.

(s) The amount of money KRW 175,233,952 is classified as remaining debts and reserved to handle in accordance with the result of a lawsuit for confirmation of reorganization claims between the extreme East Construction and some reorganization creditors after the date. The extreme East Construction was decided to terminate the company reorganization procedure on June 19, 2003.

C. The defendant obtained the approval of composition from this court on July 7, 1998, and according to Paragraph 5 of the composition condition, in the case of joint and several sureties and guaranteed liabilities provided by the company, it shall be repaid from the principal debtor first, and in the procedure for the principal debtor.