In case of a blanket auction under the application of the Factory Mortgage Act, even if a building on the registry is not stated as a letter, if it can be recognized by social norms as being used as a site for a factory where machinery is installed, it shall not be sold separately from the building and machinery.

In case of auction under the application of this Act, even if the building on the registry is not stated as letter, it can not be sold separately from the building and machinery, so long as it can be recognized as being actually used as the site for the factory where the machinery is installed by social norms.

Articles 5 and 10 of the Factory Mortgage Act

Korea Assets Management Corporation

Daegu District Court Decision 69Ra82 delivered on August 4, 1969

The original decision is reversed and the case is remanded to the Daegu District Court Panel Division.

As to the grounds for reappeal by the re-appellant’s agent:

In the explanation of its reason, the original decision was made by the court of auction to select at its discretion real estate sufficient to meet the claim amount of the creditor who applied for the auction and the creditor who takes precedence over it and the auction expenses, and to allow the auction of the remaining real estate. However, according to the records, the object of the auction of this case is land, building, machinery, etc., and the building and machinery are subject to the application of Article 5 and Article 10 of the Factory Mortgage Act. The land stated that the building is on the register shall be put up for auction together with the building and the building and the building shall be put up for auction, and if the building is used as the site of the factory where the building is installed, which is not stated on the register, and if it can be recognized by social norms as being used as the site of the factory where the building is installed, this building shall be deemed as the building and the building shall not be put up for auction, and even if the building site is used as the building and its installed machinery, it shall not be deemed as a ground for the second decision and the second decision shall not be justified.

Therefore, it is so decided as per Disposition by the assent of all participating judges pursuant to Article 413(2) of the Civil Procedure Act and Article 406 of the Civil Procedure Act.

The two judges of the Supreme Court (Presiding Judge) the Red Net Sheet