[1] The meaning of "the act of marine conflict" under Article 921 of the Civil Code

[2] Whether the act of the mother, who is a person with parental authority, offered public property of himself/herself and a minor person as security for the guarantee of the obligation of the corporation whose representative director is the representative director, constitutes an act of conflicting interest under Article 921 (1) of the Civil Code (negative)

[1] The act of conflict of interest under Article 921 of the Civil Code refers to an act that is likely to cause conflict of interest between a person with a parental authority and his/her child or among the persons subject to parental authority by nature of the objective act. Thus, whether there is a conflict of interest as a result of a person with parental authority's intent or the act is not asked.

[2] The act of the mother, who is a person with parental authority, to set up a collateral on his/her own and his/her own property as his/her own legal representative and as his/her own qualification for securing the obligations of a corporation whose representative director is a person with parental authority, shall not be deemed an act of conflict of interest between the person with parental authority and his/her minor interests, even though the person with parental authority is a representative director of the debtor company and the person with parental authority who owns 66% of the shares, and only gives a disadvantage to the minor.

[1] Article 921 of the Civil Code / [2] Article 921 (1) of the Civil Code

[1] Supreme Court Decision 71Da1113 delivered on July 27, 1971 (No. 19-2, 225), Supreme Court Decision 92Da54524 delivered on April 13, 1993 (Gong1993Sang, 1392), Supreme Court Decision 94Da6680 delivered on September 9, 1994 (Gong194Ha, 2611) / [2] Supreme Court Decision 91Da32466 delivered on November 26, 191 (Gong192, 297)

Plaintiff 1 and one other (Attorney Kim Won-won, Counsel for the plaintiff-appellant)

Hanil Bank and one other (Attorney Kang Jae-hun, Counsel for the plaintiff-appellant)

Seoul High Court Decision 95Na31074 delivered on January 16, 1996

All appeals are dismissed. The costs of appeal are assessed against the plaintiffs.

As to the Grounds of Appeal

1. The act of conflict of interest under Article 921 of the Civil Code refers to an act that is likely to cause conflict of interest between a person with a parental authority and his/her child or between the persons subject to parental authority by nature of the objective act. Whether there is a conflict of interest as a result of a person with parental authority or its act is not to ask whether or not there is any actual conflict of interest (see, e.g., Supreme Court Decisions 94Da6680, Sept. 9, 1994; 92Da54524, Apr. 13, 1993).

2. The court below acknowledged the fact that the non-party, who is a person with parental authority of the plaintiffs and the representative director of Sjin Textiles Co., Ltd., was the non-party company and completed the registration after entering into a mortgage-backed contract with the defendants as a representative director of the non-party company and his legal representative in the real estate of this case owned by the non-party and the plaintiffs as the legal representative of the non-party company. The non-party is a major shareholder holding 6% of the shares as the representative director of the non-party company and at the same time the non-party's act of establishing a mortgage-backed security right to each of the real estate of this case is to guarantee the non-party company's obligations, which is to guarantee the non-party company's obligations, and it is proper to determine that the above act of establishing a mortgage-backed security right is an act of interest conflicting the interests of the non-party as the legal representative of the plaintiffs and the plaintiffs. There is no reason to believe that there is no error in the misapprehension of legal principles as to

3. Accordingly, all appeals are dismissed, and the costs of appeal are assessed against the losing plaintiffs. It is so decided as per Disposition by the assent of all participating Justices.

Justices Kim Jong-sik (Presiding Justice)