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| TITLE | Supreme Court Decision 2010Da58315 Decided July 24, 2014【Damages】 [full Text] |
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| Summary | |
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[1] Where a parent company or the government issued a “letter of comfort” in a business transaction where the subsidiary company or public enterprise performed a transaction which involves the provision of credit (such as receiving loans), whether the parent company, etc. bears the liability to pay damages (affirmative with restriction) [2] In loan contract cases where the State is not burdened with a direct guarantee obligation to the lender, but instead with indirect obligations, such as supporting the borrower to maintain a financial condition sufficient enough to perform the obligation, then failed to perform its duty, leading to an amount of damages identical to that under a guarantee obligation when the duty to pay damages materialized, whether the aforementioned act of taking on an indirect obligation constitutes “an act where the State bears a treasury obligation” or “an act where the State bears a guarantee obligation,” as provided by Articles 24(1) and 110(1) of the former Budget and Accounts Act (negative) [3] Exceptions where the obligor’s allegation of the obligee’s comparatiue negligence is not permitted |
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