A. On July 20, 2015, the deceased C (hereinafter “the deceased”) agreed to grant a loan of KRW 23,000,000 from the Plaintiff at the rate of 9.9% per annum after the maturity of 60 months, and to repay the amount of KRW 530,661 per month in equal installments of the principal and interest.

B. According to the credit transaction basic terms and conditions or credit transaction agreements approved between the parties at the time of the above agreement, in the event that payment of installments is neglected and thereby loses the benefit of time, the parties agreed to pay damages for delay on a lump sum of 24% damages for the remaining principal and interest.

C. From October 20, 2015 to April 1, 2016, the Deceased failed to repay the principal and interest, thereby delaying KRW 3,457,531 in installments for six months until April 1, 2016. Accordingly, the Deceased lost its benefit. The sum of the principal and interest to be returned to the Plaintiff by then, other than KRW 3,457,531 in installments for six months in arrears, exceeds the principal and interest KRW 20,863,157 and interest KRW 158,013, 3,474,912.

On the other hand, at the time of installment loan, the Plaintiff established the right to collateral security of KRW 11,50,000 on DPoter’s automobile owned by the Deceased. As the Deceased lost his/her benefit as above, the Plaintiff filed an application for an auction of automobile E with the Chuncheon District Court based on the said right to collateral security, and received dividends of KRW 10,028,659 on the date of distribution on December 12, 2016.

E. On October 29, 2015, the Deceased died and the Defendants, as subordinate inheritors, jointly inherited the deceased’s property.

[Ground of recognition] Facts without dispute, Gap evidence 1 through 7, Eul evidence 1 and 4, the purport of the whole pleadings

2. Determination

A. According to the above facts of recognition, KRW 10,028,659, which remains after being first appropriated as KRW 3,457,531 and interest KRW 158,013 and damages for delay, KRW 3,474,912 for the said six-month period (= KRW 10,028,659 – KRW 3,457,531 – KRW 158,013 – KRW 3,474,912) was appropriated for principal, and as of December 12, 2016, the said dividends were appropriated for principal.