Around 2007, the Deceased borrowed KRW 10 million from the victim E, but failed to repay, the Deceased told the Victim to set up a collateral security right on each of the instant land. On December 19, 2014, the Deceased borrowed KRW 5 million from the victim to the victim, and on December 22, 2014, the Deceased completed each of the instant land as of the maximum debt amount of KRW 12 million, the obligor A (Defendant), and the mortgagee E (victim) (hereinafter referred to as the “registration of establishment of each of the instant land”). Since then, the Victim loaned the Deceased KRW 5 million around March 2015 and KRW 7 million around July 2015 to the Deceased.

On August 10, 2015, the Deceased, by telephone, called “to obtain a loan of KRW 100 million from a bank as collateral. To the effect that the right to collateral security is terminated, the Deceased shall obtain a loan by no later than August 30, 2015, and shall repay the amount of KRW 28 million, and if he/she fails to obtain a loan, he/she shall make a mortgage again by no later than August 31, 2015.” On August 11, 2015, the Defendant made a loan of KRW 10 million to the victim by no later than August 30, 2015, while the Deceased’s house located in the Defendant’s house located in the F apartment G of Pakistan, “on the first termination of the collateral security, he/she shall make a mortgage by no later than August 31, 2015, and if he/she fails to obtain the loan, he/she shall make a mortgage by no more than 28 million.”

However, in fact, the Defendant did not have the intent or ability to discharge the obligation of KRW 28 million on his own, and there was no fact that the Deceased had the intent or ability to discharge the said obligation, and the victim cancelled the right to collateral security.