1. The plaintiffs against the defendant based on guarantee insurance contracts concluded on February 7, 2015 between the defendant and D Co., Ltd.

1. Basic facts

A. On February 7, 2015, the Intervenor entered into a contract with D Co., Ltd. (hereinafter “D”) with respect to construction works that build the F building building (hereinafter “instant building”) on the Nam-gu, Ulsan-gu, and two parcels of land (hereinafter “instant building”), setting the construction cost of KRW 9.24 billion (including additional taxes) and the construction period from February 7, 2015 to February 28, 2016 (hereinafter “instant construction contract”).

B. On February 7, 2015, D entered into a guarantee insurance contract for the performance of the instant construction contract with the Defendant (hereinafter “instant guarantee insurance contract”) with the Defendant, the insured Intervenor’s Intervenor, the insurance coverage amount of KRW 924 million, the deposit rate of KRW 10 million, the insurance period of KRW 10%, and February 28, 2015 from February 7, 2015 to February 28, 2016, and the Plaintiffs as joint and several guarantors (hereinafter “instant guarantee insurance contract”). The main contents are as follows.

Article 3 (Insurance Accidents and Termination of Principal Contracts) principal and guarantor undertake to confirm that the terms and conditions of the General Agreement on the Time of Occurrence of Insured Events and the Termination or Cancellation of Principal Contracts are as follows, and to perform their obligations in good faith:

1. The insured event of this Guarantee Insurance Contract shall be deemed to have occurred when the principal fails to perform his obligations or obligations under the principal contract guaranteed by the company without any justifiable reasons; and

2. The principal contract shall be terminated or cancelled in order for the company to pay insurance proceeds upon occurrence of an insured incident, and in such cases, the termination or cancellation of the principal contract shall not be required within the insurance period;

Article 5 (Prior Claim) (1) Principal and suretys shall bear the obligation to repay in advance to the company if any of the following events occurs even before the company pays insurance proceeds, and they shall immediately pay the amount of the relevant obligation to the company:

In such cases, the company shall not exceed the credit examination for the advance repayment to the principal and the guarantor without prior notice or peremptory notice.