Contract for fidelity Guarantee and Amount of Compensation

This article is interpreted to the effect that, in determining the responsibility and amount of the fidelity guarantor, the court orders the fidelity guarantor to take into account all circumstances ex officio, even if there is no assertion of the fidelity guarantor.

Article 6 of the Fidelity Guarantee Act

Korea Finance Corporation, Inc.

Kim Jong-chul

Seoul High Court Decision 58 civilian 321 delivered on August 13, 1958, Seoul High Court Decision 2005Da321 delivered on August 13, 1958

In the event that the amount of compensation is not determined in the contract for the fidelity guarantee, the fidelity guarantor shall be interpreted as compensation only within the reasonable extent in light of the transaction. Thus, even if the defendant, the fidelity guarantor, in this case, did not determine the amount of compensation, it cannot be deemed null and void unless there are special circumstances. However, Article 6 of the Fidelity Guarantee Act provides that the court shall take into account the reasons why the employee's negligence in supervising the employee, and the changes in the employee's duties or status as well as other circumstances when determining the liability and amount of compensation, the purpose of the enactment of the Fidelity Guarantee Act is to reduce the burden of the fidelity guarantor to the extent that the purpose of the Fidelity Guarantee Act does not infringe the social function of the Fidelity Guarantee System. In determining the amount of compensation, the original judgment is interpreted to order the defendant to take into account all circumstances ex officio, even if there is no assertion of the fidelity guarantor in determining the amount of compensation, and it is not erroneous in the judgment of the court below as to the supervision of the employee, who is an employee, as well as the judgment of the plaintiff's negligence.

Justices Kim Jong-il (Presiding Justice)