1. The defendant's appeal is dismissed.

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

Purport of claim and appeal

1...

1. Determination as to the cause of claim

A. 1) On February 18, 2003, the Plaintiff extended a loan (hereinafter “instant loan”) at the interest rate of 22% per annum to C on February 18, 2003, with 24% per annum, 24% per annum, and 60 months during the lending period.

(2) As of May 2, 2016, the Defendant jointly and severally guaranteed C’s instant loan obligations. (3) The principal of the instant loan claims that the Plaintiff had not been repaid as of May 2, 2016 is KRW 2,185,256, and interest and delay damages are KRW 5,379,635.

[Reasons for Recognition] Each entry of Gap evidence Nos. 1 through 7, the purport of the whole pleadings

B. According to the above facts of determination, the Defendant is jointly and severally liable with C to pay to the Plaintiff the sum of the principal and interest of the instant loan claim KRW 7,564,891 (i.e., principal KRW 2,185,256, and damages for delay KRW 5,379,635) and damages for delay calculated at the rate of 2,185,256 of the outstanding principal and interest of KRW 2,186 from May 3, 2016 to the date of full payment.

2. The defendant's assertion stated in Article 10 of the General Terms and Conditions for Credit Transactions (Evidence No. 6) contained in the loan agreement of this case that "the card company shall inform the guarantor of the fact where the debtor fails to perform the principal, interest and other obligations for not less than one month." However, around 2003, the plaintiff did not perform the above notification obligation to the defendant who is a joint and several surety, and thus, the defendant is exempted from the joint and several liability obligations for the loan of this case.

Article 5 (2) of the Special Act on the Protection of Surety (amended by Act No. 8918, Mar. 21, 2008; hereinafter "Surety Protection Act") provides that "a financial institution which has entered into a guarantee agreement as a creditor shall notify the guarantor of the fact without delay if the principal debtor fails to perform the principal, interest, and other obligations for at least one month, and is newly established by the amendment of Act No. 10186, Mar. 24, 2010.