The method of calculating the legitimate principal of the loan where the interest on the loan is deducted in excess of the maximum interest rate under the Interest Limitation Act at the time of the loan contract for consumption.

In a loan contract, if the interest is deducted from the loan in excess of the maximum interest rate under the Interest Limitation Act at the time of the loan contract, only the limited interest under the above law shall be recognized as the legitimate interest, and the reasonable principal of the loan shall be calculated. It is reasonable that the method is the leased principal = real subsidy/1-(restricted interest rate x the period of loan).

Article 479 of the Civil Code, Article 1 of the Interest Limitation Act, Article 2 of the Interest Limitation Act

Seoul High Court Decision 80Da2694 delivered on January 27, 1981 (Gong670, 1484)

H. H. H. H.D.

Kim Jong-soo

1. The defendant shall pay to the plaintiff 5,301,579 won with 40% interest per annum from May 13, 1983 to December 15, 1983; and 25% interest per annum from December 16, 1983 to the full payment date.

2. The plaintiff's remaining claims are dismissed.

3. Ten equal portions of the costs of lawsuit shall be borne by the defendant, and the remainder shall be borne by the plaintiff.

4. Paragraph 1 can be provisionally executed.

The defendant shall pay to the plaintiff 5,868,00 won with the amount of 4% per annum from May 13, 1983 to December 15, 1983, and 25% per annum from December 16, 1983 to the full payment date.

The costs of lawsuit shall be borne by the defendant and a declaration of provisional execution.

In light of Gap evidence Nos. 1-1, 2 (the surface and back of the Promissory Notes), Eul evidence No. 1-3 (written opinion), 7, 8, 12, 15 (written statement), and 13, 16, 17, and 18 (each protocol of examination of suspect) of the same subparagraph, and testimony of the witness class 1-13 and 18 (excluding the statements No. 13 and 18, and the part which is not trusted after the witness testimony of the witness class 1-2) on February 26, 1983, the plaintiff shall not be deemed to have agreed to lend interest of KRW 5,868,00 to the defendant on May 12, 1983; the time of return shall be determined as 6% per month; the time of return shall be 13,16,17, and 180,000,000 won less the above evidence No. 10,108,40,000 won.

As to the leased principal under the above loan agreement, the portion of the prior interest agreement in excess of 40 percent per annum, which is the maximum interest rate under the Interest Limitation Act at the time of the above contract, is null and void per annum, and the above nominal loan cannot be deemed to be the leased principal. Therefore, in recognizing only the prior interest at the maximum interest rate and calculating the legitimate leased principal, it is clear that the amount is KRW 5,301,579, such as the calculation of the attached document.

Therefore, the defendant has a duty to pay to the plaintiff the amount equivalent to the agreement with the rate of 5,301,579% per annum from May 13, 1983 to December 15, 1983 as to the maximum interest rate under Article 1(1) of the Interest Limitation Act (Presidential Decree No. 9714, Jan. 12, 1980); 40% per annum within the limit of the limit under Article 1(1) of the Interest Limitation Act; from December 16, 1983 to the full payment date under Article 1(1) of the Interest Limitation Act (Presidential Decree No. 11280, Dec. 16, 1983). Thus, the defendant shall not accept the remainder of the lawsuit costs under Article 9 of the Civil Procedure Act with respect to the payment of damages for delay within the limit of the limit under Article 1(1) of the same Act.

Judges Lee Jae-won (Presiding Judge)