1. All appeals by the Defendants are dismissed.

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

1. Purport of claim and appeal

1. Determination as to the cause of claim

A. Fact-finding 1) On July 28, 2004, Defendant B entered into a loan transaction agreement with Defendant B on a loan amount of KRW 27 million with an overdue interest rate of KRW 20% per annum. Defendant C guaranteed the Defendant B’s loan obligation on July 28, 2004. 2) The Defendant B’s loan obligation is KRW 26,425,849 and interest rate of KRW 8,792,221, overdue interest, overdue interest, KRW 39,586,784 in total as of August 4, 2017.

[Recognitions] Evidence Nos. 1 and 2, and the purport of the whole pleading

B. According to the above facts of determination, the Defendants are jointly and severally liable to pay to the Plaintiff 39,586,784 won in total and 26,425,849 won in interest of the loan principal, as requested by the Plaintiff, delay damages calculated at the rate of 20% per annum, which is an overdue interest rate from January 24, 2019 to the date of full payment, following the day when the complaint was served by the Plaintiff.

2. Determination as to the defendants' defense

A. Determination on the claim regarding extinctive prescription is 1) The Plaintiff’s assertion by the Defendants is engaged in ordinary commercial activities, such as lending funds to its members for the purpose of making a profit pursuant to the Community Credit Cooperatives Act and receiving interest on such loans. The Plaintiff’s claim for the instant loan is a commercial claim since it occurred through commercial activities. Defendant B is a Co., Ltd. D (former E and hereinafter “D”).

(2) The Defendant B’s loan obligation constitutes a commercial obligation. The Defendants were unable to pay interest after October 2008, and the Plaintiff filed the instant lawsuit on May 15, 2018 when five years have elapsed since the extinctive prescription period. The Defendant’s loan obligation became extinct by the extinctive prescription period. (2) The Defendant’s claim against both parties to the judgment as well as the claim arising from an act falling under a commercial activity is five years under Article 64 of the Commercial Act.