The defendant is innocent. The summary of this judgment shall be notified publicly.

1. The Defendant is a substantial representative of a limited liability company C in Jeonnam-gun B.

On January 16, 2018, the Defendant established a right to collateral security (hereinafter referred to as “the right to collateral security”) with respect to the victim’s three parcels, F, and the maximum debt amount of KRW 864,00,000,000,000,000,000 to the victim at the victim Eak-gun, Inc., Ltd. located in Chungcheongnam-gun, Chungcheongnam-gun, Seoul-do. Around May 31, 2018, the Defendant created an additional right to collateral security (hereinafter referred to as “WK2200”) with respect to a factory building and machinery machinery at the above Southern-gun branch, which is a factory building and machinery apparatus at the above Southern-gun branch, and then the previous right to collateral security was changed to the right to collateral security under Article 6 of the Act on Mortgage over Factory and Mining Foundation, and thus, the machinery and equipment, the effect of which was installed at the above factory, should be maintained by the said machinery and equipment for the purpose of managing the victim.

Nevertheless, on May 17, 2019, the Defendant violated his duties and sold WKS200 to G Co., Ltd. (Representative H and I) for KRW 238 million,00,000,000 in violation of his duties, thereby obtaining property benefits equivalent to the above amount C, and thereby causing property damage equivalent to KRW 400,000 (value appraised as of May 16, 2018) to the victim.

2. It refers to the Cheongju District Court Decision 2020No5, Aug. 6, 2020. In order to secure a monetary obligation, even if a debtor provided the movable property owned by him/her as a collateral for security to a creditor in order to maintain and preserve the value of the collateral to the mortgagee, who is the creditor, by either disposing of the collateral or by destroying or damaging the collateral, etc., or by failing to perform any act that may hinder the execution of the security right, the creditor is on the basis of a fiduciary relationship with the creditor, beyond an ordinary contractual relationship.