A. On November 26, 2003, the non-party C Co., Ltd. (hereinafter “C”) passed a resolution of capital increase with a view to collecting debt and operating funds, and issued KRW 50 million with a face value of KRW 50 million. On May 20, 2004, as the purchase price of new shares was unpaid in KRW 25 billion, it was sentenced that C’s directors at the Jeonju District Court’s Gunsan Branch should meet the acquisition security liability for the above acquisition price.

Accordingly, D, the representative director of C, agreed to mobilize 25 billion won of capital increase with the bonds company from the non-party M, and agreed to borrow KRW 700 million from the defendant in order to raise the above funds.

B. At the time of July 2004, the Plaintiff owned a loan claim of KRW 1.7 billion against C. However, upon the said D’s request, each of the real estate listed in the separate sheet Nos. 1 through 5 (hereinafter “instant real estate Nos. 1 through 5”) owned by oneself was offered as security for the Defendant’s obligation to borrow money.

C. On July 21, 2004, the Plaintiff prepared a cash custody certificate stating that “the Plaintiff borrowed KRW 1 billion from the Defendant on the day and paid the principal to the Defendant by August 20, 2004” (hereinafter “the instant loan certificate”) and “the Plaintiff shall keep the Defendant’s money from July 21, 2004 to August 20, 2004, and return the said money to the Defendant by August 20, 2004,” respectively.

In addition, on July 21, 2004, the Plaintiff and the Defendant entered into a mortgage contract with each of the following items: “Plaintiff”, “20 million won”, “1 billion won”, “1 billion won”, “40 million won”, “5 won”, “40 million won”, and “mortgage-mortgage-mortgage-mortgage-holder,” respectively, with regard to each of the instant real estate between the Defendant and the Defendant.