[Defendant-Appellee] Han-dong Co., Ltd.

Korea Exchange Bank (Law Firm Won, Attorneys Park Jong-soo et al., Counsel for the defendant-appellant)

May 28, 2010

1. The plaintiff's claim is dismissed.

2. The costs of lawsuit shall be borne by the Plaintiff.

Of the distribution schedule prepared by the above court on March 18, 2010, the amount of 5,706,50,000,000 won for the plaintiff and the amount of 2,470,849,612 won for the defendant shall be corrected to 2,302,349,612 won for each of the above costs, among the distribution schedule prepared by the above court on March 18, 2010.

1. Basic facts

The following facts may be acknowledged in each entry in Gap evidence 1 through 4 (including a branch number if there is no dispute between the parties or if there is any number) by considering the whole purport of the pleadings:

A. On October 8, 2009, the Plaintiff acquired the right to collateral security (right to collateral security (right to collateral security) of USD 5,000,000,000 from the Merympic ck Sck, Co., Ltd. on the diesel, and on October 9, 2009, registered the transfer of collateral security (right to collateral security) on each real estate listed in the separate sheet.

B. On October 19, 2009, the Plaintiff filed an application for voluntary auction with the competent court No. 2009, 130000 on October 19, 2009, based on the right to collateral security as stated in the attached list, with respect to each real estate as stated in the attached list, and the Plaintiff entered the application for voluntary auction as “U.S. S. S. S. S. S. S. S. S. S. S. S. S. S. S. S. S. S. S. S. S. S. S. S. S. S. S. S. S. S. S. S. S. S. S. S. S. S. S. S. S. S. S. S. S. S. S. S

C. On March 18, 2010, a distribution was made in relation to the sale price under the above auction procedure. On March 18, 2010, the above court prepared a distribution schedule that the Plaintiff distributes the amount of KRW 5,706,50,000 (the amount converted the US$ 5 million into the US$ 1,141.3 won on March 18, 2010) to the Defendant, and the Defendant distributes the amount of KRW 2,470,849,612, respectively, and the Plaintiff appeared on the said distribution date and stated an objection against the distribution.

2. Determination as to the cause of action

A. Summary of the plaintiff's assertion

In converting the Plaintiff’s foreign currency claim into Korean won, the above execution court prepared a distribution schedule by applying the exchange rate at the time of a request for auction. As such, the above execution court should revise the distribution schedule by allocating to the Plaintiff the difference of KRW 168,50,000 (=the Plaintiff’s claim amount of KRW 5,875,00,000 calculated at the exchange rate at the time of request for auction - the Plaintiff’s claim amount of KRW 5,706,50,000 calculated at the exchange rate at the time of request for auction.

B. Determination

1) When a debtor pays for a foreign currency claim which is a monetary claim designated in a foreign currency, it is reasonable to say that in light of the purport that Article 378 of the Civil Act provides that the time of conversion is different from the expression "the time of payment" under Articles 376 and 377(2) of the same Act concerning foreign currency claims, the time of conversion should be paid in Korean currency instead of the time of payment, that is, when the actual performance is actually performed. Thus, even in cases where a creditor claims for a foreign currency claim by exercising the right to substitute payment and converting it into Korean currency, if the court orders the debtor to perform it, the time of exchange at the time of the most close argument of fact-finding court shall be the time of conversion into Korean currency (see Supreme Court en banc Decision 90Da2147, Mar. 12, 1991).

2) In applying the above legal principle to the auction procedure, in a case where, by exercising the right to substitute benefit and applying for auction as the claim amount converted into Korean currency, the foreign currency claim amount should be converted into Korean currency on the basis of the foreign exchange price of the “date of distribution” most nearest when the debtor actually performs his/her obligation. The same applies not only to a case where the foreign currency claim holder directly files a request for auction, but also to a case where he/she files an application for demand for distribution in the auction procedure

If, as alleged by the Plaintiff, foreign currency claims should be converted into Korean currency based on the exchange rate at the time of applying for auction, ① the provisions of Article 378 of the Civil Act, which provides that the debtor shall be paid the amount converted on the basis of the time when the debtor actually pays for the foreign currency claims, shall not be exceptionally applied to the case where the debtor is reimbursed under the auction procedure. ② Furthermore, if multiple foreign currency claims exist in the auction procedure, there are different foreign currency claims parties’ request for auction or demand for distribution, and foreign exchange prices applicable to the said foreign currency claims depending on the time when the claim for foreign currency claims are submitted, and there may be a problem of

Therefore, it is legitimate that the above execution court distributed to the plaintiff the amount converted into the Korean currency based on the foreign exchange market price of March 18, 2010 on the date of distribution as to the amount of 5 million US dollars as to the amount of the claim. Thus, the plaintiff's assertion disputing this is without merit.

3. Conclusion

Therefore, the plaintiff's claim of this case is dismissed as it is without merit, and it is so decided as per Disposition.

[Attachment]

Judges and decorations (Presiding Judge) Ma-hoap