A. On March 29, 2002, the Korea Technology Credit Guarantee Fund entered into a credit guarantee agreement with the defendant from March 29, 2002 to March 29, 2003 (the alteration to March 29, 2005) with a credit guarantee principal of KRW 127.5 million, a credit guarantee agreement with a credit guarantee principal of KRW 127.5 million, a credit guarantee period from March 25, 2003 to March 25, 2004 (the alteration to March 25, 2005), respectively, with a credit guarantee principal of KRW 85 million.

At the time, C, B, and D as the representative director of the defendant was jointly and severally guaranteed the principal and interest of the defendant to the Korea Technology Credit Guarantee Fund under the aforementioned credit guarantee agreement.

B. Under the aforementioned credit guarantee agreement, where the Korea Technology Credit Guarantee Fund makes a payment by the Defendant on behalf of the Korea Technology Credit Guarantee Fund due to the Defendant’s failure to perform its obligation to repay loans to the Bank, the Defendant is required to compensate the Korea Technology Credit Guarantee Fund for the amount of subrogation and damages for delay pursuant to the interest rate determined by the Korea Technology Credit Guarantee Fund from the date of its implementation. The interest rate for delay determined by the Korea Technology Credit Guarantee Fund is 1

C. Based on each credit guarantee agreement described in paragraph (a), the Defendant loaned a loan of KRW 150 million from the Industrial Bank of Korea on April 1, 2002, and KRW 100 million on March 15, 2003, but did not repay the principal and interest of the loan. As a credit guarantee accident occurred on March 2, 2005, the Korea Technology Credit Guarantee Fund repaid KRW 218,546,858 to the Industrial Bank of Korea on June 2, 2005.

On November 24, 2005, the Korea Technology Credit Guarantee Fund filed a lawsuit against the defendant and joint and several sureties including B for the payment of principal and interest of the amount of indemnity and expenses, etc. ( Daejeon District Court Decision 2005Gahap5809) and received a judgment on November 24, 2005 that the amount of KRW 220,012,218 and KRW 218,546,858 among them shall be paid jointly to the plaintiff and jointly by the defendant, the amount of KRW 14% per annum from June 2, 2005 to August 19, 2005, and the amount of KRW 20% per annum from the next day to the date of full payment.