A. The Plaintiff applied for a compulsory auction of real estate to the Daegu District Court C with respect to the Daegu-si B apartment operation 501, a non-party A-party A.

B. In the above auction procedure, on April 27, 2017, the above court prepared a distribution schedule with the content that the creditors of the first or fourth priority share 100%, and the remaining amount of 50,086,193 shares 18.95% to the creditors of the fifth priority as indicated below (hereinafter “instant distribution schedule”).

The creditor's property management company, defendant KAWC Co., Ltd., which is specialized in the Daegu-gu, Daegu-gu, Daegu-gu, the 2,913, 239 565,000 62,001,605 214,361,645,808,958 94,756,538 (the unit of distribution) 552,018,07,059 11,748,4218,62,9661,00,71517,955,014

C. Defendant D&C filed a lawsuit of demurrer against Defendant D&C, which was scheduled to receive KRW 100,00,00 as a mortgagee in the order of 2nd priority in the instant distribution schedule, as a collective security right holder, pursuant to the Daegu District Court 2017Kadan1169, and the said court rendered a final judgment on November 21, 2017 that “The amount of the secured debt against Defendant D&C was extinguished by the extinctive prescription, and thus, dividends against the said Defendant is unreasonable. Meanwhile, there is no evidence to prove that Defendant D&C applied for a demand for distribution prior to the expiration of the period for demand for distribution. As such, Defendant D&C cannot receive dividends on the basis of the total amount of the claim, and only can receive dividends within the limit of KRW 98,281,617,00 as a provisional attachment holder, to the amount of dividends against Defendant D&C in the instant distribution schedule as KRW 98,281,617, and KRW 2314,2017.”

In this case, it is argued that the Defendant’s security obligation became extinct due to the completion of the extinctive prescription.