The plaintiff's lawsuit against the defendant C is dismissed.

Defendant D and E jointly pay to the Plaintiff KRW 1,000,000.

1. Determination as to Defendant C’s main defense

A. The Plaintiff sought payment of KRW 1 billion, which is part of the debt, as joint and several surety of the Plaintiff’s loan to Defendant C, Non-Party F Co., Ltd. (hereinafter “Non-Party F”), as the principal and interest of the loan to Defendant C. The Defendant C does not have the standing to be a party in bankruptcy proceeding under his/her bankruptcy proceeding. Thus, the Plaintiff’s lawsuit against the above Defendant is unlawful.

B. All assets owned by the debtor at the time of the declaration of bankruptcy and the right to manage and dispose of the bankrupt estate belongs to the trustee in bankruptcy. As such, the trustee in bankruptcy becomes the party concerned in the lawsuit related to the bankrupt estate (Articles 382, 384, and 359 of the Debtor Rehabilitation and Bankruptcy Act). Since the debtor is not a party concerned in the lawsuit related to the bankrupt estate, the lawsuit brought by the debtor as the plaintiff is illegal and dismissed (Article 359 of the Debtor Rehabilitation and Bankruptcy Act). In such cases, the trustee in bankruptcy is not allowed to file a lawsuit on the premise that the lawsuit is pending in the court at the time of the declaration of bankruptcy (see Supreme Court Decision 2017Da289828, Jun. 15, 2018).

In light of the above legal principles, according to the evidence Nos. 1 and the purport of the entire pleadings submitted by the defendant, the defendant C was declared bankrupt on June 11, 2018 and was appointed G as a bankruptcy trustee (U.S. District Court Decision 2018Hadan9, 2018Ma9, 2018Ma9), and the defendant C submitted a list of creditors including the plaintiff in the case of the above declaration of bankruptcy, etc., and the plaintiff was notified of the bankruptcy decision against the above defendant. The plaintiff was currently under bankruptcy proceeding against the above defendant, and the plaintiff filed the lawsuit in this case against the defendant C who was not a bankruptcy trustee on March 23, 2020 after the declaration of bankruptcy.