1. The defendant's appeal is dismissed.

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

Purport of claim and appeal

[Claim]

1. Basic facts

A. On December 31, 2015, the Plaintiff entered into a credit guarantee agreement (hereinafter “the instant credit guarantee agreement”) with the Defendant, setting the credit guarantee principal for the Defendant’s obligation of KRW 20 million with respect to general loans that the Defendant would obtain from Company B, with the term of December 31, 2015, by the credit guarantee term of KRW 20 million and by December 31, 2020. The details of the instant credit guarantee agreement relating to the instant case are as follows.

Article 10 Scope of Repayment (1) When the Foundation (referring to the plaintiff) has fulfilled the guaranteed obligation, the principal and the joint guarantor shall pay the amount falling under any of the following subparagraphs immediately:

1. Performance amount of surety obligations;

2. The rate set by the Foundation from the date of performance to the date of repayment for the amount under subparagraph 1, and the amount calculated according to the calculation method.

3. Expenses incurred in performing guaranteed obligations;

4. Expenses incurred in the preservation, transfer and exercise of any right acquired through discharge of guaranteed liabilities;

5. Unpaid guarantee fees, overdue guarantee fees, and additional guarantee fees.

6. Compensation for delay calculated by multiplying the amount paid under subparagraphs 3 and 4 by the rate determined by the Foundation from the date of payment to the date of repayment.

1. Insurance premiums paid on behalf of a foundation pursuant to Article 8 (3);

(3) The rate determined by the Foundation in paragraphs (1) and (2) means the rate determined by the Foundation in consideration of overdue loans of financial institutions to the extent prescribed by the statute.

(4) Where the Foundation changes the rates and calculation methods referred to in paragraphs (1) through (3) due to the change of Acts and subordinate statutes, it shall comply with them from the date of change.

B. On December 31, 2015, the Defendant submitted a credit guarantee statement issued pursuant to the instant credit guarantee agreement to Company B, and received a loan of KRW 20 million from the said bank.