1. All appeals by the Defendants are dismissed.

2. The costs of appeal are assessed against the Defendants.

Purport of claim and appeal

1.

Basic Facts

The Industrial Bank of Korea concluded a credit transaction agreement with Defendant A Co., Ltd. (hereinafter “Defendant A”), and concluded a loan as listed in the following table (hereinafter “instant loan”); and Defendant B jointly and severally guaranteed each of the above loans to the Industrial Bank of Korea by Defendant A.

After December 30, 2013, Defendant A failed to perform its duty to repay the debt of the instant loan, and the principal and interest of the instant loan at the time of December 30, 2013 are as listed below.

On February 27, 2013, the Industrial Bank of Korea transferred the instant loan claims to Cuba in accordance with the asset acquisition agreement entered into with Dauba (hereinafter “ Kuuba”), a company incorporated pursuant to Japanese law, pursuant to the said agreement. The said asset acquisition agreement entered into with the Industrial Bank of Korea on February 28, 2013, the instant loan claims were also transferred to Cuba as a limited-liability company specialized in Cuba-backed securitization, with the consent of the Industrial Bank of Korea.

On March 28, 2013 and the following day, the Industrial Bank of Korea sent to the Defendants a notice of assignment of claims to the effect that it transferred all of the rights, such as the instant loans, to Kumia and the United Nations EPS Specialized Company, by content-certified mail, and on April 2, 2013, the said notice of assignment of claims was publicly announced on the national daily newspaper and the new one.

The notice of assignment of claims by the Industrial Bank of Korea was not served on the Defendants and was eventually returned.

On the other hand, on January 29, 2013, the Industrial Bank of Korea applied for a voluntary auction of real estate owned by Defendant A to the Seoul Southern District Court C, and received a decision on commencing auction from the above court on January 31, 2013.

Since then, on December 30, 2013, a limited company specialized in Es.S. Asset-backed Securitization, which is the transferee of the instant loan claims, receives dividends of KRW 94,621,475 in the distribution procedure for the aforementioned real estate rental auction case, and receives the total amount of the said dividends.