It constitutes a fraudulent act by which a delinquent taxpayer created a collateral security on real estate in excess of his/her liability.

An act of a debtor, who is in excess of his/her obligation, provides real estate to any one of the creditors as collateral security, becomes a fraudulent act against the equality of creditors in relation to other creditors.

Article 406 of the Civil Act

2014Gaba50362 Fraudulent Act

Korea

○ ○

June 27, 2014

June 27, 2014

1. As to real estate listed in the separate sheet:

(a) The contract to establish a right to collateral security concluded on June 28, 2010 between the defendant and GoA (***************, on the register: the address on the register: Jeonnam-gun 00,000, 000); and

B. The defendant will implement the procedure for registration of cancellation of the registration of the establishment of a neighboring mortgage completed by Law No. 27654 of June 28, 2010 to the High Court.

2. The costs of the lawsuit are assessed against the defendant.

The reasons for the claim are as shown in the disposition (the attached Form of the real estate cited in the purport of the claim is omitted in the written complaint.

In addition, a certified copy of the real estate register, etc.

1. Determination as to the cause of claim

On June 8, 2010, 2010 between the defendant and the defendant with a sixth degree of relationship, who entered into a mortgage contract with the maximum debt amount of 20 million won with respect to the attached property, and completed the registration of establishment of a mortgage in the future of the defendant on the same day. The active property of the defendant at that time is KRW 32,883,020 (the sum of the 1/3 share of the attached real estate and the 18,545 square meters in the 18,545 square meters in the 18,00-0 square meters in the 18,545 square meters in the 110,907,620 (the sum of the 263,745,530 won in the tax debt with the plaintiff + the 30,162,090 won in the 30-162,090 won in the 17,000 won in the 15th debt-backed credit transaction between the defendant and the obligee.

In light of the above circumstances, the completion of the registration of creation of a neighboring mortgage on the instant real estate in excess of the obligation of the Defendant is an act that reduces the joint security of the GoA in insolvency, and at the same time, becomes a fraudulent act against the Plaintiff, which is a general creditor, and the Defendant’s bad faith is presumed to be a beneficiary, and no special circumstance exists to deny the fraudulent act. Accordingly, in response to the Plaintiff’s exercise of the Plaintiff’s right of revocation, the said right of establishment of a collateral should be revoked as a fraudulent act, and the Defendant is obliged to perform the procedure for cancellation of the registration of the establishment of a neighboring mortgage to the original state.

2. Conclusion

If so, the plaintiff's claim shall be accepted for the reasons of the judgment as per Disposition.