Whether the legal nature of the decision to transfer a contract under Article 14(2) of the former Act on the Structural Improvement of the Financial Industry and whether the said decision shall meet the requirements for setting up against the designated transfer under Article 450 of the Civil Act in order to take effect of the contract transfer (negative)

Article 14(2) of the former Act on the Structural Improvement of the Financial Industry (Amended by Act No. 5549, Sep. 14, 1998); Article 14-2(2), (3), and (4) of the Act on the Structural Improvement of the Financial Industry; Article 450 of the Civil Act; Article 5-4(3) of the former Enforcement Decree of the Act on the Structural Improvement of the Financial Industry (Amended by Presidential Decree No. 15894, Sep. 22, 1998);

Supreme Court Decision 2001Da38807 Delivered on April 12, 2002 (Gong2002Sang, 1094) Supreme Court Decision 2002Da12734 Delivered on December 26, 2002 (Gong2003Sang, 470) Supreme Court Decision 2002Da23826 Delivered on May 30, 2003 (Gong2003Ha, 1429)

National Bank of Korea (Law Firm International, Attorneys Ha Man-young et al., Counsel for the defendant-appellant)

Korea Deposit Insurance Corporation and one other (Law Firm Busan, Attorneys Kim Jong-sik et al., Counsel for the plaintiff-appellant)

Busan High Court Decision 2006Na18136 decided May 10, 2007

All appeals are dismissed. The costs of appeal are assessed against the Defendants.

The grounds of appeal are examined.

Article 14 (2) of the former Act on the Structural Improvement of the Financial Industry (amended by Act No. 5549 of Sep. 14, 1998) provides that the nature of the decision to transfer a contract under Article 14 (2) of the former Act on the Structural Improvement of the Financial Industry shall take effect upon the decision of the Financial Supervisory Commission, and that it shall not be deemed that the transfer of a contract takes effect upon the decision, and that the transfer of a contract shall not take effect upon the decision in a daily newspaper if the decision to transfer a contract meets the requirements for setting up against the transfer of a designated claim under Article 450 of the Civil Act, and if the decision to transfer a contract takes effect upon the unilateral decision of the Financial Supervisory Commission (see Supreme Court Decision 2001Da3807, Apr. 12, 2002) and the purport of the system and the contract transfer under Article 5-4 (3) of the Enforcement Decree of the same Act (amended by Presidential Decree No. 15894, Sep. 22, 1998).

In the same purport, the court below is just in rejecting the defendants' assertion to the effect that since the plaintiff did not satisfy the requirements for setting up against the designated transfer after the decision of transfer of contract in this case was declared bankrupt, the trustee in bankruptcy of the dong bank corresponding to the third party cannot set up against the defendants by the decision of transfer of contract in this case, and there is no error

Therefore, all appeals are dismissed. It is so decided as per Disposition by the assent of all participating Justices on the bench.

Justices Park Si-hwan (Presiding Justice)