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. Determination on the cause of the claim

A. On December 14, 2010, the co-defendant C of the first instance trial (hereinafter “C”) of the facts of recognition prepared a letter of performance to return KRW 15 million received from the Plaintiff to the Plaintiff by March 13, 201, and the Defendant signed a letter of performance as a guarantor.

The Plaintiff received a total of KRW 2.5 million from C on February 2011.

[Ground of recognition] Facts without dispute, Gap 1, 2, witness D, the purport of the whole pleadings

B. However, the Defendant, as a guarantor of the instant performance letter, is obligated to pay to the Plaintiff the remainder of the agreed amount of KRW 12.5 million (= KRW 15 million - 2.5 million), excluding the remainder of the agreed amount of KRW 2.5 million, which was incurred by the Plaintiff in repayment of the principal amount, as a guarantor of the instant performance letter.

2. Judgment on the defendant's assertion

A. The Defendant’s assertion, etc. (1) KRW 15 million paid by the Plaintiff to C is not a loan, but an investment for the sale of goods or products with respect to cosmetics, etc. that the Plaintiff would receive from Company E (hereinafter “E”) operated by C (hereinafter “E”).

Therefore, as long as the goods supply contract is not invalidated, the plaintiff cannot seek the return of the price for the goods already paid while refusing to accept the goods.

After all, C does not have a duty to return KRW 15 million to the Plaintiff, and accordingly the Defendant, the guarantor, does not have a duty to pay the same.

(2) The Defendant stated that he would cancel the guarantee to the Plaintiff immediately after signing the instant performance memorandum, and that D, who was actually represented by the Plaintiff, would not be aware of the Defendant. As such, the Defendant’s guarantee act was revoked or rescinded by agreement around that time.

(3) C received KRW 15 million from the Plaintiff and did not involve real transactions, such as the supply of goods, thereby guaranteeing interest of at least KRW 300,000 per month to the Plaintiff and returning the principal within three months.