A. On September 10, 2004, the Plaintiff: (a) sold to Defendant B a forest of 16,760 square meters (hereinafter “instant real estate”) for KRW 1.2 billion in the sales price (hereinafter “instant sales contract”); and (b) completed the registration of ownership transfer on September 24, 2004; (c) Defendant B paid only KRW 650 million out of the sales price, and did not pay the remainder of KRW 550 million in the sales price.

B. On October 2, 2004, the Plaintiff and Defendant B entered into an agreement on the payment of the remainder (hereinafter “instant agreement”).

With respect to the instant real estate sales contract, the buyer agreed to the seller A and guaranteed by E Co., Ltd. for the remainder of KRW 550 million as follows.

1. Of KRW 300,000,000 which is to be paid in cash, KRW 50 million shall be paid on October 12, 2004; and KRW 250,000,000 on October 25, 2004; and

2. Payment of KRW 250,000,000,000 to be made by substitute shall be made at 31 square meters of Gangdong-gu F reconstruction apartment constructed by E Co., Ltd., and payment shall be made by entering into a supply contract at the same

C. Meanwhile, Defendant C was the representative director of E Co., Ltd. (hereinafter “E”) at the time of the instant agreement.

Defendant C, along with Nonparty G, was indicted for fraud with the Seoul Central District Court Decision 2006Da6182, 2007Kadan6205 (Joint) and 2007 Godan451 (Joint). On July 15, 2008, the above court sentenced Defendant C to two years of imprisonment with prison labor and three years of suspended execution, for the following reasons: “E acquired the instant real estate under the name of B by acquiring the ownership transfer from the Plaintiff as collateral, even if E acquired the ownership of the instant real estate due to the shortage of funds, without the intent or ability to pay the full amount of the purchase price, if E obtained the ownership transfer registration of the instant real estate from the Plaintiff.”

【Defendant B】