1. The defendant's appeal is dismissed.

2. The costs of appeal shall be borne by the Defendant.

Purport of claim and appeal

1..

1. Basic facts

A. On April 14, 2017, F Co., Ltd. (hereinafter “F”) entered into a loan transaction agreement with G Cooperatives with a total amount of KRW 1.488 billion, which is a sum of the loans extended to G Cooperatives. As a collateral, the G Association offered the instant real estate as a preferential beneficiary, and completed the registration of ownership transfer based on the trust as Seoul Western District Court’s registration No. 19090, Apr. 14, 2017.

B. The following provisions are stipulated in the real estate security trust agreement and special agreement regarding the instant real estate concluded between the Plaintiff, F and G Cooperatives:

Article 10 (Preservation, Management, etc. of Trust Real Estate) (1) A truster shall use trust real estate continuously, and shall bear all the expenses incurred therein, such as actual management, such as preservation, maintenance, repair, etc. of trust real estate.

(3) Where a truster has no prior consent of a trustee, he/she shall not restrict or reduce the ownership of real estate in a trust by creating rights, such as lease, or changing the current state thereof, with respect to the trusted real estate.

Article 19 (Time of Disposal of Real Estate in Trust) (1) In any of the following cases, the real estate in trust may be disposed of at the request of the priority beneficiary, etc. even if the period of trust expires:

1. Article 20 (Disposal Method) (1) In the event of a violation of the credit transaction agreement concluded between the preferential beneficiary and the debtor, the disposal of real estate trusted under this contract shall, in principle, be disposed of through competition in the open market;

Provided, That at the time of a failed inspection, a private contract may be concluded under the conditions immediately before the date of next disposition is publicly announced.

Article 24 (Duty of Specifying) Where realization procedures for trusted real estate are commenced, the truster shall order the trusted real estate, and shall actively cooperate with the guidance for the possessor other than the person eligible for protection of the lease.

(b) the provisions of the special agreement;