1. The defendant's appeal is dismissed.

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

Purport of claim and appeal

1...

According to the overall purport of the statements and arguments by Gap 1 and 2 as to the cause of the claim, the fact that the plaintiff lent KRW 5,000,000 to the defendant on July 10, 2015 that the repayment period was set at around August 2015, and the interest was set at 2% per month.

Therefore, barring special circumstances, the Defendant is obligated to pay to the Plaintiff interest or delay damages calculated at the rate of 12% per annum pursuant to the agreement from July 10, 2015 to September 30, 2016, which is the service date of the original copy of the instant payment order, and 15% per annum pursuant to the Act on Special Cases concerning Expedition, etc. of Legal Proceedings from the following day to the day of full payment.

The summary of the Defendant’s assertion of set-off is that the Plaintiff would be invested KRW 100 million from C, but the Plaintiff must provide C with a security for the investment amount, and requested the Defendant to set up a collateral security right for C with respect to the real estate owned by the Defendant.

Accordingly, on May 18, 2015, the defendant set up a collateral on apartment owned by the defendant (Seoul Gangseo-gu D apartment 402 Dong 202 dong 202) as collateral for one year. In return, the plaintiff agreed to pay 700,000 won out of the monthly income from the investment.

Nevertheless, since the Plaintiff did not pay 3.5 million won (=700,000 won x 5 months) as agreed upon during the five-month period from December 2, 2015 to April 2016, the Plaintiff’s claim equivalent to the above amount shall be offset against the Plaintiff’s claim.

Judgment

According to the purport of Gap 7, Eul 1, and 2's statements and arguments, Eul invested KRW 100 million in the plaintiff. The defendant created the right to collateral security with respect to the above apartment on May 18, 2015 with the maximum debt amount of KRW 130 million and the right to collateral security with the mortgagee C. On April 25, 2016, the change of the maximum debt amount of the above right to collateral security was made on April 25, 2016. The defendant received a certain amount of money from the plaintiff each month in relation to the establishment of the above right to collateral security.