The part of the judgment of the first instance against the defendants shall be revoked.

2. All of the Plaintiff’s claims against the Defendants.

1. Basic facts

A. C obtained a loan (hereinafter “one of the instant loans”) from the Plaintiff (hereinafter “Plaintiff”) with the amount of October 17, 1994 as KRW 30,00,000,000, and with the period of the loan from October 17, 1994 to October 17, 1998, with the interest rate of 11.5% per annum (1.5% per annum).

B. C delayed the payment of interest on the instant loan 1 from February 18, 1998, and as of February 17, 1998, C failed to pay KRW 12,306,960, and KRW 18,924,208, out of the instant two loans as of April 26, 1998.

(c)

Meanwhile, at the time of entering into each of the instant loan agreements, the Plaintiff and C agreed to apply the basic terms and conditions of the bank transaction. Article 3(1) of the said basic terms and conditions provides that “If the bank changes the interest rate for interest and delay damages, the obligor will comply therewith.”

Article 7 (2) and Article 7 (2) shall automatically lose the benefit of the time limit for the obligation and impose the obligation to repay that interest, if the obligor delays the payment of interest for one month continuously from the time when the obligor is liable to pay the interest.

“The provisions of this section shall apply mutatis mutandis.”

(d)

The Plaintiff’s delayed damages rate was 27% per annum from December 24, 1997 to June 21, 1998, and was 25% per annum from June 22, 1998.

E. Around December 30, 1999, the Plaintiff transferred all of the instant loan claims to H, a corporation, and H, a corporation around December 28, 200 to the Korea Asset Management Corporation; the Korea Asset Management Corporation transferred all of the instant loan claims to the Plaintiff’s Intervenor on September 18, 2012; and around that time, notification of the transfer of claims was sent to C.

F. C died on November 17, 201, and the Defendants, their children, and I, respectively, share 1/3 of the net C’s property.