1. All appeals by the Defendants are dismissed.

2. The costs of appeal are assessed against the Defendants.

Purport of claim and appeal

1.

1. On February 28, 2013, the Plaintiff and the Defendants drafted an investment guarantee and loan agreement (hereinafter “instant agreement”) as follows, and the Plaintiff paid KRW 200 million to Defendant B on the same day.

Investment Guarantee and Loan Agreements A (A) and B (B) agree to an investment agreement and loan agreement as follows:

A. L. L. L.I.

1. A shall invest KRW 200 million to B in February 28, 2013.

2. A shall be paid KRW 400 million to A with a final interest in investment February 27, 2014.

3. If the above maturity cannot be paid KRW 400 million, the amount of KRW 400 million shall, as a matter of course, be converted to the borrowed money and shall be paid to A at the rate of KRW 400 million per annum and twenty five percent per annum until the repayment date.

4. If it is impossible to pay at maturity, a promissory note with respect to the principal of KRW 400 million and interest accrued until the date scheduled for payment shall be prepared, delivered to Gap, and the joint guarantor shall be endorsed.

(A) The fact that there is no dispute over Gap (Investors and borrowers) A (debtors and joint guarantors) B (joint guarantors) C (based on recognition), each entry in the evidence Nos. 1 and 2, and the purport of the whole pleadings

2. Determination on this safety defense

A. The Defendants asserted that the Plaintiff’s withdrawal agreement was concluded between the Plaintiff and Defendant B regarding the instant lawsuit seeking the payment of loans under the instant agreement, and Defendant C may invoke the aforementioned defenses in accordance with the nature of the guaranteed obligation as a joint and several surety of Defendant B. Thus, the Defendants asserted that the instant lawsuit against the Defendants should be dismissed in entirety as there is no benefit of protection of rights in accordance with the agreement on the withdrawal of the lawsuit.

B. According to the reasoning of the judgment No. 1 and the evidence No. 5, the Plaintiff and Defendant B drafted a criminal agreement on April 12, 2017 during the first instance trial of this case, and the contents thereof are as follows. The Plaintiff filed a criminal lawsuit against Defendant B, etc. on August 30, 2016, separate from the instant lawsuit for non-existence of liability.