Litigation costs shall be borne by the plaintiff.

A. The Defendant borrowed 130,000,000 won from the Plaintiff on September 8, 200, as the construction fund was insufficient in the process of constructing a 7th floor building for accommodation facilities (hereinafter “instant building”) on the ground of Yangyang-gun, Yangyang-gun, Gangwon-do (hereinafter “instant land”), the Defendant owned by the Defendant, as the Defendant, in the course of building a new building for accommodation facilities (hereinafter “instant building”). As to the instant land as security for the said borrowed amount, the Defendant set up a collateral security right of KRW 160,000,000 for the maximum debt amount.

B. Subsequent to that, the Defendant borrowed money several times from the Plaintiff and D due to lack of construction funds for the construction of the instant building. On February 22, 2002, the Defendant confirmed that the borrowed money to be repaid between the Plaintiff and D was KRW 750,000,000, and agreed to set up and deliver to the Plaintiff and D a promissory note with the face value as of August 30, 2002 (hereinafter “instant promissory note”) upon the completion of the construction of the instant building on the ground of the said borrowed money as security (hereinafter “instant mortgage agreement”).

C. Although the construction of the instant building was completed, the Defendant did not complete the registration of creation of a neighboring mortgage pursuant to the instant mortgage contract to the Plaintiff and D. Accordingly, the Plaintiff and D filed a lawsuit against the Defendant as the Incheon District Court 2003Gahap3511, which sought the execution of the registration of creation of a neighboring mortgage regarding the instant building, and subsequently, obtained a quoted judgment from the above court on November 26, 2003. Accordingly, on December 27, 2003, the Defendant completed the registration of establishment of a neighboring mortgage to the Defendant, the Defendant, the mortgagee, the mortgagee, and D on December 27, 2003.

The plaintiff and D applied for a voluntary auction of the building of this case to the Seocho Branch of the Chuncheon District Court on the basis of the above collateral security (hereinafter the plaintiff and D applied for auction procedure of this case) and the auction procedure of this case on April 14, 2005.