The costs of appeal are assessed against the defendant.

1. According to the reasoning of the lower judgment on basic facts and the record, the following facts are revealed.

J Co., Ltd. (hereinafter referred to as the “J”) granted a loan of KRW 7.5 billion to K Co., Ltd. (hereinafter referred to as “K”) on October 16, 2009 at the rate of KRW 10% per annum, 10% per annum, and 25% per annum, of the expiration date of the credit extension period.

(hereinafter referred to as the “instant loan”). On the same day, the Plaintiff A jointly and severally guaranteed the present and future obligation to KJ within the limit of KRW 9.75 billion.

B. On October 14, 2009, K and the Plaintiffs entered into each of the following three groups’ right to collateral security between K and J with a view to securing the said bank’s obligations at present and in the future. On October 16, 2009, K and the Plaintiffs completed the registration of establishment of the pertinent right to collateral security.

① As a result, the collective security right (hereinafter “instant Group A collective security right”) was established with respect to the four units of the building located in Namyang-si and the apartment located in Yeonsu-gu Incheon Metropolitan City owned by the Plaintiff as the joint collateral and with the maximum debt amount of KRW 2.5 billion (hereinafter “instant group A collective security right”), ② the land and building located in the Incheon Nam-gu, Incheon, and the land located in the territory of the Plaintiffs, and the land located in the Incheon Nam-gu, where the Plaintiffs jointly own one-half shares, with the maximum debt amount of KRW 4 billion (hereinafter “instant Group B collective security right”), and ③ the collective security right (hereinafter “instant collective security right”) with the maximum debt amount of KRW 90,00,000 or KRW 1.6 billion for each real estate in respect of the 36 units of the building located in Namyang-si owned by K.

The parties concerned do not overlap the scope of the collateral between each of the instant Group A’s mortgage and the instant Group B’s mortgage registered as the joint collateral and secure all of the instant loans together, except for the instant Group B’s mortgage.