1. The defendant's appeal is dismissed.

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

Purport of claim and appeal

1..

Basic Facts

The debtor A Co., Ltd. (hereinafter referred to as the “debtor”) and G Co., Ltd. (hereinafter referred to as the “G”) are all companies incorporated for the main purpose of the manufacture, etc. of ship cranes.

On June 8, 2017, the Defendant acquired one copy of the 4th non-guaranteed private equity convertible bonds (certificate number: J. hereinafter “instant convertible bonds”) from the debtor company owned by the said company from the limited liability company H at KRW 1 billion.

(However, the “certificate number of convertible bonds to be transferred” column of the contract for the transfer and takeover of convertible bonds prepared between the Defendant and the limited liability company refers to the erroneous statement that “I” is “second time”. The Defendant requested the debtor company to redeem the principal and interest of the instant convertible bonds on three occasions from December 28, 2017 to March 2, 2018, but the debtor company did not repay the principal and interest of the instant convertible bonds to the Defendant.

On March 12, 2018, the Defendant decided to transfer the instant convertible bonds to G in KRW 1.05 billion (hereinafter “instant bond acquisition agreement”); G provided two copies of the instant non-guaranteed private equity convertible bonds issued by the debtor company at the face value of KRW 500 million (certificate number: J and K) to the Defendant in order to secure the debtor’s obligation to pay the purchase price under the instant bond acquisition agreement; and the debtor company jointly and severally guaranteed the debtor’s obligation to G due to the instant bond acquisition agreement.

(2) On April 9, 2018, “The Defendant borrowed KRW 1,057,808,220 on April 9, 2018 by a notary public of April 2018, 2018 to G and borrowed KRW 1,057,808,220 on April 9, 2018. G shall pay the full amount of the borrowed money to G by April 30, 2018, and shall pay damages for delay calculated at the rate of 19% per annum to the Defendant where G delays pay the repayment.

The debtor company and L Co., Ltd. shall guarantee the obligations of G under this contract, and shall be jointly and severally liable with G.