1. The plaintiffs' claims are dismissed.

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

Basic Facts

The relationship between the parties concerned FTRD (hereinafter referred to as “F”) is the owner of a vessel G (G, Belize State, hereinafter referred to as “instant vessel”).

The representative of F and H Co., Ltd. (hereinafter referred to as “H”) is the Australia State.

On September 13, 2013, the Defendant: (a) entered into a mortgage agreement with F as set forth below (hereinafter “mortgage agreement”); (b) on October 7, 2013, the Defendant entered into an application for registration in accordance with the form for mortgage registration (MPOTRGGGGE RE REIE REFOM) set out in Appendix 3 (APENIX3) attached to the Belgium’s FOM; and (c) on this basis, a notary public was certified as a deed signed by a private person in accordance with Articles 473 and 5179, both 3 and 5179, respectively.

The mortgagee of the ship (F) and the mortgagee of the mortgage on the ship of this case, whose beneficiary is the defendant, shall enter into a bond contract for the purchase of the ship of this case, and the mortgagee shall be liable for the full payment of 500 million won to the mortgagee.

Article 2 (Peremptory Principal) The highest amount guaranteed by this mortgage is one billion won.

Article 3 (Payment of Interest and Principal) The mortgagee shall be liable for the full payment of interest 3% per month to the mortgaged creditor on the 25th day of each month for two years from the commencement to the termination of the bond contract.

A mortgaged debtor shall be liable for the full payment to the mortgaged creditor over ten times each month with the principal from the commencement of the bond contract to the termination of the bond contract, which shall be 50 million won on the 25th of each month.

And Hdo, which is the agent of the mortgaged debtor, shall also be liable for full payment of the interest and principal to the mortgaged creditor during the period of the bond contract.

Article 5 (Maturity) The expiry date of this Agreement is October 14, 2015.

The Defendant remitted KRW 500 million to H’s account on September 13, 2013, and F, according to the instant mortgage agreement, the Defendant: (a) transferred the instant vessel to the Defendant as of September 13, 2013; (b) KRW 500 million per month; (c) KRW 300 million per month; (d) September 13, 2013; and (e) October 14, 2015 for the due date.