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. Facts of recognition;

A. On June 1, 2009, the Plaintiff’s Intervenor (hereinafter “the Intervenor”) entered into a contract with the co-Defendant Ethio Information and Communications Co., Ltd. (hereinafter “Ethio Information and Communications”) on customer management, including subscription to, and receipt of fees, and on the provision of mobile phone devices (hereinafter “instant agency contract”). Article 26 of the said contract is as follows.

Article 26 (Appropriation of Performance) Where a entrusting agency performs its obligation to a case of a entrusting agency or appropriates such obligation to offset, etc., if the entrusting agency does not repay the debt, or the reserve fund for repayment is not extinguished due to offsetting, etc., the case may be appropriated in the following order:

The case and the entrusted agency may separately determine the method of appropriation by mutual agreement.

1. Obligations to return money, goods support, leased expenses and value of goods leased to a commissioning agency under this contract and related agreements;

2. Obligations for public imposts;

3. The obligation to pay for the goods under Article 23;

B. 1) On April 1, 2010, the case is an agreement to support and lend a lease deposit, premium, etc. for the entrusted agency’s business to Embio Information and Communications (hereinafter “instant support agreement”) (hereinafter “instant support agreement”).

(2) According to the foregoing agreement, the Plaintiff and the insured entered into a corporate financial guarantee insurance contract (hereinafter “instant guarantee insurance contract”) with the amount of KRW 68,00,000 as of April 8, 201, and with the amount of KRW 6,181,818 in installments for 11 months. 2) The Plaintiff and the Defendants entered into the instant guarantee insurance contract with the Plaintiff on April 8, 2010 in order to secure the repayment obligation of the aforementioned subsidy for the case of the Ethio Information and Communications. The Plaintiff and the insured, the amount of the insurance, the insurance amount of KRW 74,80,000, and the insurance period from April 8, 2010 to April 29, 2011. The Defendants concluded the guarantee insurance contract with the Ethio Information and Communications as of April 29, 2011.