2. The costs of appeal shall be borne by the Defendant.

Purport of claim and appeal

1..

A. On February 20, 2001, the Plaintiff C borrowed KRW 20,000,000 from the Dobong Saemaeul Fund on February 20, 2001 with the due date set on February 20, 2004, and the Plaintiff A and B jointly guaranteed the Plaintiff C’s obligation to pay the above loans.

B. The agreement of the above loan provides that "if it is deemed that the monthly payment of deposits, installment savings, mutual installments, etc. offered as security is unlikely to be delayed on more than four consecutive occasions, etc., it shall be set off by the notice of the credit cooperative even before the last repayment date (the expiration date of the loan), and the loan concerned shall be repaid immediately after loss of the benefit of time from that time (hereinafter "the offset agreement of this case").

C. On May 9, 2001, the old Saemaeul Fund and the Plaintiffs drafted a notarial deed with respect to the above loans (hereinafter “instant notarial deed”) separate from the loan agreement, and the content of the portion related to the instant case is as follows.

Article 3 (Interest) The interest rate shall be 13.5% per annum and, in case where an obligor falls under any of the following subparagraphs, each 20th day of each month, one-month installment, and the obligor shall, without any other notification or peremptory notice from the obligee, lose the benefit of the time limit for the obligation, and immediately repay all of the remainder of the obligation:

1. When an application for the bankruptcy, the commencement of composition or the commencement of company reorganization procedures has been made on the debtor;

2. When the debtor is subject to a disposition of suspension of transaction by the creditor bank;

3. When the debtor falls under any of the following subparagraphs when the payment of principal and interest is delayed, the debtor shall, upon the request of the creditor, lose the benefit of the time limit for the above obligation and immediately repay all of the remainder of the obligation:

1. When the debtor has received a request for compulsory execution, provisional seizure, provisional disposition or auction from a third person;

2. A disposition of seizure by the debtor for his tax in arrears.