When limitation is unassessed, it is not reflected in the figures. A zero scenario does not determine invalidity, discharge or a refund of prior payments.
Only lawful principal-debt amounts are compared. Guarantor-specific delay damages, separate penalties and litigation costs are excluded.
Entered debts included or excluded by origination period
A gratuitous guarantee often starts as an unpaid favor for a relative or friend. A demand does not establish the whole amount payable. Check the written expression of intention, covered transactions and debts, and the written maximum and term. This tool organizes those facts for pre-payment review. It does not determine authenticity, authority or disputed wording, or submit a defense for you.
Confirm special Act coverage
Article 2 excludes specified business-related guarantees, directors’ guarantees for company debt, and partnership guarantees. Relatives of an officer require the statutory conditions, including shared economic benefit or influence on management; family status alone does not decide exclusion. Review motivation, business benefit, position and actual involvement. Unconfirmed coverage withholds monetary conclusions.
Signatures, seals and electronic form
Civil Act Article 428-2 requires intention expressed in writing with the guarantor’s signature or name and seal. Electronic form alone does not meet it. A personal signature differs from another person writing the name. Supreme Court 2018Da282473 distinguishes an authorized proxy applying name and seal from proxy handwriting of a signature. Inspect the original and authorization. The rule also applies to adverse changes; multiple amendments need individual review.
Specific and continuing guarantees: written maximum
A specific loan guarantee differs from a continuing guarantee for uncertain multiple debts. Civil Act Article 428-3 and special Act Article 6 require a written maximum for continuing guarantees and expressly deny effect if unspecified. It must be objectively identifiable from the writing: do not invent it from unit prices or expected volumes. Article 4 also requires a maximum for protected specific guarantees, but the tool does not equate an omission with the continuing-guarantee invalidity rule. It withholds the conclusion.
Three years limits origination, not survival of liability
Under Article 7 an original protected contract without an agreed term uses three years. Supreme Court 2018Da42231 interprets this as the origination period absent special circumstances. Expiry does not erase covered debts, and lawful interest can continue afterward. Only debts originated after the end are excluded. Existing pre-contract debts may be covered, so scope confirmation is required. Check wording, start time and holidays separately.
Renewals and contracts before 2016
The latest renewal anchors the review period. An unspecified renewal uses the original term under Article 7(2): enter its verified months. An original 60-month term must not become 36 months. Include older debts only when confirmed within the current cap. Act 13125 applies the new Civil Act rules from 2016-02-04 to contracts concluded or renewed thereafter. Earlier contracts are withheld for former-law review, not treated as valid or exempt from writing requirements.
Calculation of the additional review amount
Add verified principal, interest and delay damages, separate out-of-period rows, apply the written maximum, then deduct allocated guarantor payments. Additional amount = max(0, min(in-period debt total, written maximum) − prior guarantor payment). An excluded specific guarantee without a required cap uses the entered total. Guarantor-specific delay damages, separate penalties and litigation expenses remain outside this comparison, including arrangements under Civil Act Article 429(2).
Worked example: a KRW 45 million demand
Assume a protected continuing guarantee on 2019-05-01 without an agreed term, capped at KRW 30,000,000. Its nominal end reference is 2022-05-01. Enter KRW 20,000,000 originated on 2020-06-01 and KRW 25,000,000 on 2023-03-01, with zero interest and prior payment. The additional review amount is KRW 20,000,000. Against a KRW 45,000,000 demand the difference is KRW 25,000,000. It is not an established right to refuse payment: other debts, interest, renewals and terms can change it.
Prior payments and double deduction
Article 428-2(3) limits form-defect arguments to the extent performed. It does not automatically cure an unspecified continuing maximum or determine refunds. With in-period debt of KRW 35,000,000, a cap of KRW 30,000,000 and KRW 5,000,000 allocated against it, the additional amount is KRW 25,000,000. Do not enter debt already net of the guarantor payment and deduct that payment again. Obtain the creditor’s allocation between principal, interest and costs.
Notification-breach reduction is an assumption
Civil Act Article 436-2 covers credit information, specified default notices and debt details on request. Special Act Article 5 distinguishes three-month default from one-month default at financial institutions. No statutory percentage follows automatically. Article 5(4) limits relief to loss caused by breach; Civil Act Article 436-2(4) requires court assessment. The default is 0%. With KRW 20,000,000, a 20% assumption and KRW 1,000,000 verified loss, assumed relief is KRW 1,000,000 and the balance is KRW 19,000,000.
Missing credit information and termination dates
Under Article 8(3), a covered institution’s failure to present credit information at contracting allows a request. Nonresponse within seven days of receipt permits termination notice within one month of knowledge. Effect follows one month after notice receipt. Enter request receipt, knowledge and optional notice receipt separately. References are nominal period-end dates before holiday adjustment. Verify start time, delivery and holidays; act early and do not assume earlier debts are released.
Steps and next actions
Obtain originals and all amendments, compare dates, form and maximum, then request itemized debt statements, allocations and performance status. Use actual debt-incurrence dates, not invoice or due dates. Resolve pending facts before relying on the amount, and save the TXT review for consultation. Court response deadlines come first; a calculator does not protect them. After payment, use the separate indemnity calculator for reimbursement.
Scope and limits
This covers one guarantor and one principal debtor within one guarantee. Co-guarantor division, insurance terms, fidelity guarantees, enforcement and rehabilitation exceptions are excluded. Limitation, acknowledgment, litigation and interruption require separate review. Defense review withholds monetary conclusions; unassessed limitation is absent from the figures. Forgery, authority, invalid debt, setoff and allocation disputes need evidence. The cap concerns entered lawful principal-debt amounts and the confirmed maximum.
Frequently asked questions
What if only electronic evidence exists?
Check other paper writings, Article 428-2 and contract timing. Electronic evidence alone does not settle the entire case.
Is every missing maximum fatal?
Distinguish continuing from specific guarantees. The latter omission is not automatically treated like the former’s invalidity rule.
Does everything expire after three years?
The term generally limits origination. Earlier debts and lawful subsequent interest may remain; limitation is separate.
Does payment cure all defects?
Form-defect arguments are restricted to the extent performed, without deciding every cap defect or the remainder.
Is interest included?
Verified principal-debt interest and delay damages are included; guarantor-specific damages and separate costs are excluded.
Does late notification discharge everything?
Loss and causation must be established. Neither fixed-rate relief nor total discharge is guaranteed.
How are older contracts handled?
Check renewal and transitional provisions. Contracts or renewals before 2016-02-04 are withheld.
Can I ignore a payment order at zero?
Court response deadlines are separate. Check them first and seek advice with the guarantee and report.
Official sources and update assumptions
Verified via the National Law Information OPEN API on 2026-11-02. Civil Act MST284415, effective 2026-03-17; Guarantor Protection Act MST251943, effective 2023-12-21. Supplementary Act 13125, promulgated 2015-02-03, applies the new rules from 2016-02-04. Supreme Court 2018Da282473 (2019-03-14, ID206266) and 2018Da42231 (2020-07-23, ID226459) were verified. Recheck amendments, transitional rules, actual coverage, wording, allocations, court relief and calendar assumptions.