1. The defendant's appeal is dismissed.

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

Purport of claim and appeal

purport.

Facts of recognition

On May 8, 2012, the Plaintiff lent KRW 20,000,00 to C (Co-defendants in the first instance trial) at the maturity of payment on March 7, 2013 and at the rate of 2% per interest month. The Defendant jointly and severally guaranteed the above loan obligation (hereinafter “the loan obligation”).

C up to May 7, 2017, the Plaintiff paid the principal amount of KRW 8,800,000 to the Plaintiff out of the instant loan debt.

As of May 20, 2017, the Plaintiff and C settled that as of May 7, 2017, the instant loan obligation remains as principal KRW 10,000,000 and interest KRW 1,200,000.

C transferred KRW 300,00 to the Plaintiff on May 24, 2017.

[Ground] According to the facts without dispute, Gap evidence Nos. 1 and 2, Eul evidence Nos. 2, and the court below's determination as to the ground for claim as to the purport of the entire pleadings, the defendant is obligated to pay to the plaintiff 10,900,000 won [the principal amount = 10,000,000 won (interest 1,20,000 won - 300,000 won)] and damages for delay calculated at the rate of 24% per annum from May 8, 2017 to the date of full payment, except in extenuating circumstances.

The defendant's argument that the defendant's joint and several liability has already been extinguished after the expiration of the guarantee period pursuant to Article 7 (1) of the Special Act on the Protection of Surety (hereinafter "Surety Protection Act").

In light of the above, Article 7(1) of the Surety Protection Act provides that "the term of guarantee shall be deemed three years if there is no agreement on the term of guarantee." However, the term of guarantee stipulated in the above provision refers to the period during which the guarantee obligation may specifically occur. In the absence of the guarantee term in the case of a guarantee for a collateral guarantee or a continuous transaction, the term of guarantee shall be limited to three years and the liability of the guarantor shall be limited to the extension of the guarantee term.