1.The judgment of the first instance shall be modified as follows:

The defendants are jointly and severally liable to the plaintiff for 275,092,560 won and their portion.

1. Basic facts

A. On September 23, 2014, the Plaintiff concluded an export credit guarantee agreement with Defendant A Co., Ltd. (hereinafter “Defendant Co., Ltd.”) on the basis of the credit guarantee limit of KRW 270 million (hereinafter “instant guarantee agreement”). Under the instant guarantee agreement, the Defendant Co., Ltd. issued a guarantee number C (re-guarantee) with the term of guarantee from October 14, 2013 to October 13, 2015, with respect to the loan obligations of trade finance loans that the Defendant Co., Ltd. will receive from Korea Exchange Bank (hereinafter “instant loan”). The Defendant Co., Ltd issued to the Defendant Co., Ltd. with the export credit guarantee agreement with the Korea Exchange Bank as security of the said export credit guarantee agreement.

At the time of the conclusion of the instant guarantee agreement, Defendant B jointly and severally guaranteed all obligations, such as indemnity to the Plaintiff by the Defendant Company, the primary debtor, in accordance with the instant guarantee agreement.

B. According to the main contents of the instant guarantee agreement, in the event that the Plaintiff performs the guaranteed obligation under the instant guarantee agreement, the Defendant Company decided to reimburse the Plaintiff (i) the amount of performance of the guaranteed obligation, (ii) the amount of the Plaintiff’s preservation, performance, and reasonable expenses required for the exercise of the right acquired by the Plaintiff due to the performance of the guaranteed obligation. If the Defendant Company fails to repay the amount of performance of the guaranteed obligation, the amount of performance of the guaranteed obligation is the amount of the Plaintiff’s domestic compensation guidelines designated by the Plaintiff.

The agreement was made to pay damages for delay calculated by multiplying the number of days from the next day to the date of redemption by the rate of damages for delay determined by the Plaintiff.

On the other hand, the rate of delay damages set by the plaintiff's domestic compensation guidelines is from July 1, 2015.