1. Revocation of the first instance judgment.

2. The plaintiff's claim is dismissed.

3. All costs of the lawsuit shall be borne by the Plaintiff.

1. Facts of recognition;

A. On June 19, 2008, the Defendant agreed to make installment payments of KRW 5,00,000 per annum 48.96% per annum, 48.98% per annum of overdue interest rate, and 120,000 per annum of November 26, 2010 (hereinafter “instant loan”).

B. On February 26, 2009, the Defendant repaid KRW 120,000 to C on February 26, 2009, and did not fully repay the instant loan obligations, thereby losing the benefit of time.

C. On February 26, 2010, C transferred the instant loan claim to the Plaintiff, and notified the Defendant of the transfer of the said claim on October 6, 201.

As of November 27, 2017, the principal and interest of the instant loans are KRW 5,762,841 (i.e., the principal and interest of KRW 1,674,543, the interest of KRW 4,088,298).

[Ground of recognition] Facts without dispute, entry of Gap evidence 1 to 5, and purport of the whole pleadings

2. The Defendant, barring special circumstances, is obligated to pay to the Plaintiff the agreed overdue interest rate of 27.9% per annum for the Plaintiff, calculated with respect to KRW 5,762,841 and the principal of KRW 1,674,543, among the agreed overdue interest rates, from November 28, 2017 to the date of full payment.

3. The defendant's defense of extinctive prescription is defense that the plaintiff's claim of the loan of this case had already expired.

In this case, the five-year extinctive prescription period prescribed by the Commercial Act shall apply to the Plaintiff’s loan claim against the Defendant, which is a merchant, with a claim arising from a commercial activity conducted by the Plaintiff for business purposes.

However, it is evident that the instant lawsuit was filed on November 28, 2017, after five years from February 27, 2009, after the Defendant lost the benefit of time. Therefore, the Plaintiff’s claim for the instant loan was extinguished by prescription prior to the filing of the instant lawsuit.

Therefore, the defendant's defense is justified.

4. Thus, the plaintiff's claim shall be dismissed as it is without merit, and the judgment of the court of first instance differs from this.