1. The defendant's appeal is dismissed.

2. The costs of appeal shall be borne by the Defendant.

3. The text of the judgment of the court of first instance is set forth.

1. Basic facts

A. On March 25, 2009, A (hereinafter “A”) entered into a loan transaction agreement with the Defendant (hereinafter “instant loan agreement”) with the content that: (a) KRW 300,000,000 per annum; (b) 7.4% per annum; (c) 20% per annum; and (d) maturity on March 26, 2014; and (c) the Defendant would lose the benefit of time if the agreed interest is not paid; and (d) deposit the said money with the Defendant’s account on March 26, 2009.

B. On March 25, 2009, the Defendant entered into a mortgage agreement with A on each of the real estate listed in the separate sheet owned by the Defendant (hereinafter collectively referred to as the “instant real estate”) with respect to each of the real estate (hereinafter referred to as the “instant real estate”) as indicated in the separate sheet owned by A, with a view to securing the obligation of loans under the instant loan agreement (hereinafter referred to as the “mortgage agreement”), with a maximum debt amount of claims, and with respect to each of the said real estate (hereinafter referred to as the “instant real estate”), and concluded a mortgage agreement with A on the same day.

C. The loan principal calculated by subtracting the principal amount of KRW 10,00,000 from the loan obligations under the instant loan agreement was lost the benefit of the remaining loan due to the failure to pay interest from November 10, 2010 to A, with respect to KRW 290,000,000.

A applied for a voluntary auction on the instant real estate and received a decision to commence the voluntary auction on May 18, 201 (Seoul District Court D) and the said decision to commence the auction was allotted KRW 96,240,605 in the said voluntary auction procedure on April 18, 2012.

E. The principal and interest under the instant loan agreement amounting to KRW 290,00,000 as of April 20, 2012, and interest amounting to KRW 83,583,561. On April 20, 2012, A appropriated KRW 90,257,288 calculated by subtracting the expenses from the said dividend and the money appropriated for the Defendant’s self-reliance deposit loan.

F. On April 24, 2014, the Plaintiff merged A to take over the instant litigation procedure after comprehensively transferring A’s rights and obligations.