A. On December 1, 2005, the Plaintiff entered into an exchange contract (hereinafter “instant exchange contract”) with Defendant C, who is Defendant B and his son, by calculating the exchange value of each real estate by acquiring the other party’s obligation to each real estate and deducting the amount of obligation from the exchange value. The Plaintiff concluded an exchange contract by calculating the exchange value of each real estate (hereinafter “instant exchange contract”).

B. The Defendants completed the registration of ownership transfer of 1/2 shares with respect to the instant real estate on December 2, 2005, and completed the registration of ownership transfer, and thereafter, managed the instant real estate by receiving rent from the lessee of the instant real estate and receiving the lease deposit by newly leasing it.

In the process, on September 12, 2006, Defendant C created a mortgage of KRW 2,600,000 with respect to the instant real estate with respect to a new bank (hereinafter “new bank”) on the said real estate, and on September 13, 2006, Defendant C loaned KRW 2,000,000 from the new bank under the joint and several guarantee of Defendant B, and repaid the Plaintiff’s loan obligations to the Industrial Bank of Korea, which secured the instant real estate.

C. However, on May 4, 2006, the Plaintiff failed to register the transfer of ownership with respect to the Defendant’s real estate because the Plaintiff failed to obtain the power of attorney, etc. required for the registration of the transfer of ownership from the Defendants. On May 10, 2006, the Plaintiff notified the Defendants that the instant exchange contract will be cancelled without any separate notice. The Defendants did not deliver the said documents, etc. to the Plaintiff with the lapse of May 10, 2006.

On April 30, 2008, the Plaintiff entered into the instant exchange contract against the Defendants.