1. The defendant's appeal is dismissed.

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

3.The reduction of claims in the trial shall be made.

1. Facts of recognition;

A. On September 24, 2002, the Defendant created a pledge on the Defendant’s deposit money of KRW 10,000 against the Plaintiff (hereinafter “instant deposit”) with the limit of KRW 10,00,000 on the following day, each time the Defendant’s claim is made, and the Defendant shall pay interest at 6.5% per annum on the loan (hereinafter “first loan contract”). On the following day, the Defendant was given a loan by withdrawing KRW 10,000 from the Defendant’s passbook established pursuant to the above loan contract. At the time of the first loan contract, the Defendant established a pledge on the Defendant’s deposit money of KRW 10,00,00 against the Plaintiff for the purpose of securing the Defendant’s loan obligation (hereinafter “the instant deposit”). The period of the first loan contract was extended on two occasions until September 20, 2005, the Plaintiff concluded a loan contract with the Defendant on August 25, 2005, and the loan amount was 10,005,000 won.

After that, on September 21, 2005, the original Defendant extended the term of the second loan contract to September 18, 2006. The Defendant failed to repay the principal and interest of the loan until September 18, 2006, which is the expiration date of the above loan period.

E. At the time of the second loan contract, the basic terms and conditions of credit transactions incorporated into the contract stipulate set-off as follows:

1) If the maturity of the obligation has arrived or should have been paid immediately pursuant to Article 7, the Bank may offset the obligor’s obligation and the obligor’s deposit and other claims against the obligor’s bank by written notification, regardless of whether or not the maturity of the obligation has expired (Article X(1)(2) and (2).