1. The attached list is based on the mortgage that the defendant completed on December 2, 2013 by the Daegu District Court Kimcheon-gu Branch of the Supreme Court in accordance with the receipt No. 2958.

1. Basic facts

A. On August 9, 2013, the Plaintiff agreed to provide B and ELD (hereinafter “ELD”) with the instant machinery as security for transfer, by setting the purchase price for the goods listed in the attached list (hereinafter “instant machinery”) as the payment period on February 8, 2014, and lending KRW 500 million to B and ELD (hereinafter “instant machinery”).

B. After the agreement, ELD installed the instant machinery in a factory operated by B located in the 14,948 square meters of land in Kimcheon-si, Kimcheon-si.

C. B received a loan from the Defendant on November 8, 2012, and set up a mortgage on the instant machinery as security against the Defendant, Kimcheon-si Factory Site C with a 14,948 square meters, etc., and the Defendant created a mortgage on the instant machinery as the receipt No. 29598 on December 2, 2013 (hereinafter “the instant mortgage”).

On September 15, 2017, the Defendant filed an application for voluntary auction based on the instant mortgage ( Daegu District Court Kimcheon Branch D) with respect to the instant machinery, and received the decision of commencement.

[Ground of recognition] Unsatisfy, Gap evidence Nos. 1-4 (including each number), the purport of the whole pleadings

2. The parties' assertion and judgment

A. In the event that a movable which is the object of a mortgage as to the cause of the claim is already offered for the purpose of transfer by means of possession alteration, that movable is subject to the ownership of the mortgagee in relation to the mortgagee as the third party, and thus, it cannot affect the effect of the mortgage.

(see, e.g., Supreme Court Order 98Da64, Oct. 12, 1998). According to the above basic facts, the machinery of this case was provided as a security for transfer by means of possession and alteration before the instant mortgage is completed, and thus, the said mortgage cannot be effective. Thus, a voluntary auction against the said machinery by the Defendant based on the instant mortgage cannot be permitted.

The Small and Medium Business Corporation on November 27, 2013.