1. Each of the plaintiffs' claims is dismissed.

2. The costs of lawsuit are assessed against the plaintiffs.

1. Basic facts

A. On July 1, 2012, Plaintiff A Co., Ltd. (hereinafter “Plaintiff A”) entered into a C Project Agreement with the Seoul Olympic Sports Promotion Foundation (hereinafter “ Sports Promotion Foundation”) and entered into a joint and several guarantee agreement with Plaintiff B as a joint and several surety in order to guarantee the return of such restitution in cases where Plaintiff A is required to receive a redemption decision on the use of government subsidies from the Sports Promotion Foundation as a purpose other than government subsidies and return the subsidies to the Sports Promotion Foundation.

B. On August 21, 2012, Plaintiff A and the Defendant entered into a guarantee insurance contract with the term “insured Sports Promotion Foundation,” the insured amount of KRW 680,00,000,000, and the term of insurance from July 1, 2012 to August 31, 2013. On August 19, 2013, Plaintiff A and the Defendant entered into the guarantee insurance contract with the same content as the said guarantee insurance contract (hereinafter “each guarantee insurance contract of this case”) except as otherwise provided for in the foregoing guarantee insurance contract from July 1, 2013 to August 31, 2014, and Plaintiff B and the same joint and several surety with respect to Plaintiff A’s obligations under each of the respective guarantee insurance contracts.

C. On May 3, 2016, the Sports Promotion Foundation filed a claim against the Defendant for the payment of the insurance money based on the instant insurance contract on the ground that the Plaintiff’s reimbursement claim against the Plaintiff arose due to the use of the government subsidy other than that of the Plaintiff A. D.

On May 11, 2016, the Defendant as a preserved claim against the Plaintiffs for prior reimbursement of indemnity against the Plaintiffs, and as to the land for factory and its ground buildings located in Geumcheon-gu Seoul Metropolitan Government (hereinafter “instant real estate”) owned by the Plaintiff, 2,380 square meters of forests and fields E, Chungcheongnam-do, Chungcheongnam-do, Chungcheongnam-do (hereinafter “instant 2 real estate”) and 118,413 square meters of forests and fields of forest land in Chungcheongnam-do, Chungcheongnam-do, Chungcheongnam-do (hereinafter “instant 3 real estate”).