The appeal is dismissed.

The costs of appeal are assessed against the defendant.

The grounds of appeal are examined.

1. The Special Act on the Protection of Suretys (hereinafter “Surety Protection Act”) provides for special exceptions to the Civil Act with respect to guarantee, thereby preventing economic and mental harm to a guarantor, which takes place without any consideration, and establishing a reasonable practice of guarantee contract for pecuniary obligations, thereby contributing to the establishment of a credit society.

(1) Article 1. In entering into a guarantee agreement, the maximum amount of the guaranteed obligation must be specified in writing (Articles 4 and 6). If there is no agreement on the guarantee period, the guarantee period shall be deemed three years (Article 7(1)), but if there is no agreement on the guarantee period, the guarantee period at the time of entering into the contract shall be deemed the period (Article 7(2)). In light of the contents, structure, legislative purpose, etc. of these provisions, the purpose of Article 7(1) of the Surety Protection Act is to protect the guarantor by specifying the scope of the guaranteed obligation.

Therefore, unless there are special circumstances, the term "guarantee Period" stipulated in this Regulation shall be interpreted as the period of the principal obligation which the guarantor bears the responsibility for the guarantee, and it shall not be deemed as the term of the guaranteed obligation.

2. The lower court accepted the Plaintiff’s claim on the following grounds.

B On July 14, 2009, a letter of set up and delivered to the Plaintiff a total of KRW 120,000,000 and due date of repayment on August 31, 2009, and the Defendant jointly and severally guaranteed the loan obligation.

Therefore, the defendant is obligated to pay to the plaintiff 120,000,000 won and damages for delay.

The defendant asserts that at the time of the lawsuit of this case, the defendant extinguished the liability for joint and several sureties since the guarantee period of the three-year period under Article 7 (1) of the Surety Protection Act has expired.

However, it cannot be said that the guarantor's liability for guarantee has expired because the guarantee period of Article 7 (1) of the Surety Protection Act has expired.

3. The judgment of the court below is examined.