[2014 Highest 3503] The Defendant is a person who operates “D” at the window of Changwon-si from March 2007 to July 2014.

1. On March 27, 2013, the Defendant in breach of trust related to the transfer for security, which was established on March 27, 2013, took out a loan of KRW 350,000,000 from the victim Gyeongnam Bank, Inc. at the Dong branch of Gyeongnam Bank, Kimnam Bank around around March 27, 2013. In order to secure the obligation of the loan, the Defendant provided 7 machinery worth KRW 676,00,000,000 in total market price of the above D factories as the transfer for security to the victim company. As such, the duty to fully repay the loan and keep the said machinery until the contract for transfer is terminated,

Nevertheless, the Defendant paid approximately KRW 280,88,000 out of the above loans, in violation of the above duties, and transferred approximately KRW 22,000,000 to the seller of used machines in the name of D plant around October 2013 and sold approximately one half of the above machinery (the model name: HL580 x 200) to one half of the first and the NC Line (the model name: MEG95-2500) from July 24, 2014 to the 31st day of the same month, and transferred approximately KRW 12,000,000 to E as debt repayment equivalent to approximately KRW 12 million.

As a result, the Defendant acquired financial benefits equivalent to KRW 34 million in total of the above purchase price and the amount of debts, and caused damages equivalent to KRW 73,140,000,000 in total of the three market prices of the above machinery to the victim

2. On April 9, 2012, the Defendant in breach of trust related to the transfer for security, established on April 9, 2012, extended a loan from the Industrial Bank of Korea at the branch of the Changwon Industrial Bank of Korea to the Industrial Bank of Korea on the condition of repayment from the victim to March 22, 2020 at the Industrial Bank of Korea. In order to secure the obligation of the loan, one machine model (the model name: CNC LA PMA 700) equivalent to KRW 246 million at the market price in the above D factory was offered to the victim company as a transfer for security. Accordingly, the above loan is fully repaid.