1. All appeals by the Defendants are dismissed.

2. The costs of appeal are assessed against the Defendants.

Purport of claim and appeal

1.

1. Facts of recognition;

A. As to the “Seoul, Dongjak-gu E, F, and G ground brick 206 square meters, 59.16 square meters, and 19.72 square meters in underground room,” which existed before the new construction of the real estate indicated in the separate sheet (hereinafter “instant real estate”), the debtor entered into a mortgage agreement with the Industrial Bank of Korea on August 29, 1994, setting the amount of the maximum debt as KRW 39,000,000 and completed the registration of the establishment of mortgage over the Industrial Bank of Korea.

However, upon the removal of the existing real estate, the said collateral security remains remaining only in Dongjak-gu, Seoul, F, and G, the site of the instant real estate.

B. On April 16, 1997, Defendant A Co., Ltd. (hereinafter “Defendant A”) whose representative director was Defendant B, agreed to take over the obligation of loans from Defendant B to the Industrial Bank of Korea, and to take over the status of the contractor under the loan agreement with the Industrial Bank of Korea, and H agreed to take over the contract.

Accordingly, the obligor of the right to collateral security remaining in the site of the instant real estate was changed from Defendant B to Defendant A.

C. 1) On March 18, 1997, H completed the registration of initial ownership on the instant real estate by the court No. 10536, which was received on March 18, 1997. H entered into a contract on additional collateral security with the Industrial Bank of Korea on April 16, 1997, setting the maximum debt amount of the instant real estate as KRW 39,00,000,000, and the debtor A as Defendant A, in addition to the existing collateral security that existed on the instant real estate site, and completed the registration of initial collateral security with the Industrial Bank of Korea as of April 16, 1997. In addition, H entered into a contract on additional collateral security with the Industrial Bank of Korea on April 16, 1997.