The appeal is dismissed.

The costs of appeal are assessed against the defendant.

The grounds of appeal are examined.

The First Ground for Appeal

A. The former Indirect Investment Asset Management Business Act (amended by Act No. 8635 of Aug. 3, 2007 and enforced as of Feb. 4, 2009; hereinafter “Indirect Investment Act”) does not have any separate provision regarding the establishment of pledge rights for share of limited partners of a private equity fund, and even in the Commercial Act applicable to a private equity fund pursuant to Article 144-2(4) of the same Act, there is no provision regarding the establishment of pledge rights for share of limited partners of a limited partnership company.

On the other hand, Article 346 of the Civil Act provides that the method of transferring the right shall be applied to the establishment of pledge right unless otherwise provided for by law. Article 144-14(3) of the Indirect Investment Act provides that a partner with limited liability of a private equity fund may transfer his/her equity share to another person without dividing the equity share invested with the consent of all general partners. However, there is no separate provision on requirements for setting up against or disclosure to a third party in the transfer of equity share of a limited partner of a private equity fund, and there is no separate provision on requirements for setting up against a third party in the transfer

In addition, Article 269 of the Commercial Act provides that the provisions concerning an unlimited partnership shall apply mutatis mutandis to a limited partnership company unless otherwise provided in Chapter III of Part III of the Commercial Act, and Article 195 of the Commercial Act concerning an unlimited partnership company shall apply mutatis mutandis to the internal relation of an unlimited partnership company, unless otherwise provided in the articles of association or in this Act, the provisions of the Civil Act concerning an partnership shall apply mutatis mutandis to the internal relation of an unlimited partnership company.

. The above.