1. Case Overview
Our client was the CEO of a corporation. The plaintiff, a non-performing loan (NPL) company, acquired the corporation's distressed debt and subsequently collected 1.4 billion KRW through a public sale process to cover the obligations. However, the plaintiff claimed that even after this massive allocation, a residual debt of over 500 million KRW remained. Claiming that the client, as the CEO, had provided a joint guarantee for this debt, the plaintiff filed an assignee claim lawsuit seeking a 500 million KRW judgment against the client personally. It was a severely critical situation where the CEO faced personal collection efforts for hundreds of millions of won.
 

 

• Recalculation of the Exact Repayment Allocation Order and Balance: We uncovered a severe error in the plaintiff's calculation method for the remaining debt. We mathematically proved that when the correct repayment allocation order under the statutes and terms was applied, the amount claimed by the plaintiff could not legally stand.
• Strict Verification of the Joint Guarantee Fact: Holding the position of corporate CEO does not automatically entail personal joint guarantee liability. Theo clearly analyzed the disposal documents and financial transaction history drafted at the time, actively and effectively proving that the client never signed a joint guarantee in a personal capacity for the remaining debt.

3. Result of Assistance
The court fully accepted Law Firm Theo's legal arguments and evidentiary materials. The court determined that "the corporate CEO's joint guarantee debt has been extinguished," fully dismissing the plaintiff's (NPL company) assignee claim and ordering the plaintiff to bear all litigation costs, resulting in a complete victory for the client.

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