1. Regarding ground of appeal No. 2

A. (1) The Act on the Registration of Real Estate under Actual Titleholder’s Name (hereinafter “Real Estate Real Name Act”) prohibits real rights to real estate from being registered under the name of the title trustee pursuant to the title trust agreement (Article 3(1)), and prescribes that a penalty shall be imposed on the title truster who violates the said Act.

(Article 5(1)1 of the Real Estate Real Name Act provides that “In addition, Article 6(1)1 of the Real Estate Real Name Act provides that “Any person on whom a penalty surcharge is imposed pursuant to Article 5(1)1 shall, without delay, register the real right to the relevant real estate in his/her own name: Provided, That this shall not apply to cases falling under the proviso to Article 4(2), and where any justifiable ground for not being able to register in his/her own name exists, he/she shall register the real right in his/her own name without delay after the said ground ceases to exist.” The proviso to Article 4(2) provides that the change in the real right is not null and void if the title trustee

Furthermore, Article 6(2) of the Real Estate Real Name Act provides that where the above obligation of registration is violated, the amount equivalent to 10/100 of the appraised value of the real estate shall be imposed at the time when one year passes from the date the penalty is imposed, and the amount equivalent to 20/100 of the appraised value of the real estate shall be imposed as the enforcement fine, respectively.

(2) In full view of the provisions, contents, system, etc. of the Real Estate Real Name Act, the Real Estate Real Name Act does not only impose a penalty on the title truster who violates Article 3(1) but also imposes a duty to register the real right to the relevant real estate in his/her name and impose a non-performance penalty if the said Act is violated.