1. Revocation of a judgment of the first instance;

2. The instant lawsuit shall be dismissed.

3. All costs of the lawsuit shall be borne by the Plaintiff.

With respect to the Plaintiff’s assertion against the Defendant, the Plaintiff claimed for the payment of KRW 540 million and the delay damages therefrom, the Defendant asserted that the instant lawsuit is unlawful, since the Plaintiff did not file an application for the continuation of a lawsuit under the Debtor Rehabilitation and Bankruptcy Act even though the rehabilitation procedure for the debtor was commenced during the first instance trial.

When rehabilitation procedures commence according to the legal principles as to the legality of the lawsuit in this case, the litigation procedures on rehabilitation claims falling under the property claims arising prior to the commencement of rehabilitation procedures are suspended (hereinafter “Act”).

Article 59(1) of the Act, any rehabilitation creditor who intends to participate in rehabilitation procedures shall report rehabilitation claims to the court within the period for reporting the claims (Article 148 of the Act); when rehabilitation claims are not confirmed on the grounds of lawful objections by any custodian, etc., the right holder holding the rehabilitation claims may file an application for the final claim inspection judgment (Article 170(1) of the Act); when a lawsuit on the disputed claims is pending at the time the rehabilitation procedures commence, any person who holds the right to the rehabilitation claims shall take over the litigation procedures against all objectors to seek the confirmation of his/her rights (Article 172(1) of the Act); an application for taking over the above litigation procedures shall be filed within one month from the last day of the inspection period (Articles 170(2) and 172(2) of the Act); where an application for taking over the rehabilitation procedures after the expiration of the period is filed, such lawsuit is illegal (see, e.g., Supreme Court Decisions 9Da52312, Feb. 11, 2000; 2013Da129, etc.).