Whether the Republic of Korea is obligated to accept the registration of cancellation of the right to collateral security upon seizing the right to collateral security and completing the registration of seizure of real estate.

Since the claim secured by the right to collateral has expired by prescription, the mortgagee has the duty to cancel the right to collateral, and the Republic of Korea has the duty to express his/her consent to the registration of cancellation as a third party with a interest in the registration

Article 24 of the National Tax Collection Act

2018 Ghana 57105 De-mortgage

AA Trust Corporation

Republic of Korea 1

May 22, 2019

June 5, 2019

1. The Plaintiff:

A. Defendant BB implements the procedure for registration of cancellation of the establishment registration of a neighboring mortgage completed on March 25, 2008 by the Aaa District Court BB registry office b00 on each of the real property indicated in the separate sheet as to each of the real property indicated in the separate sheet;

B. The defendant Republic of Korea has expressed its intention of acceptance on the registration of cancellation as described in the above paragraph (a).

2. Of the costs of lawsuit, the part arising between the Plaintiff and the Defendant ChoB shall be borne by Defendant ChoB, and the part arising between the Plaintiff and the Defendant Republic of Korea by each party.

Cheong-gu Office

The same shall apply to the order.

1. Determination on the cause of the claim

(a) Fact finding;

The following facts may be acknowledged in full view of the entry of No. 1 and the purport of the whole pleadings.

1) On November 11, 2009, the Plaintiff acquired the ownership of each real estate indicated in the separate sheet (hereinafter “instant real estate”) on October 27, 2009, on the ground that it was trust held on October 27, 2009.

2) Meanwhile, Defendant ChoB completed the establishment registration of a neighboring mortgage (i.e., aa district court BB registry office B/B) (i.e., the contract concluded on March 25, 2008, the debtor ParkCC, the maximum debt amount of KRW 450 million, hereinafter referred to as the “instant collateral security”) under No. 12568, Mar. 25, 2008.

3) In addition, on August 13, 2015, Defendant Republic of Korea seized Defendant ChoB’s right to collateral security against Park Jae-B, and based on this, completed the attachment registration on the instant real estate on August 19, 2015.

B. Determination

According to the above facts, Defendant ChoB’s claim against ParkCC was created on March 25, 2008, which was the date of establishment of the right to collateral security, and ten years thereafter passed on March 25, 2018, and the statute of limitations expired.

Therefore, Defendant B is obligated to cancel the right to collateral security on the instant real estate due to the extinction of the prescription of the secured claim based on the nature of the secured right, and Defendant B is obligated to express his/her consent to the above cancellation registration as a third party with an interest in the registration.

2. Determination as to Defendant ChoB’s assertion

As to this, the defendant ChoB lent KRW 300 million to ParkCC around March 2008, and set up the instant collateral security. Since ParkCC approved the above loan debt around around 2016, the extinctive prescription is suspended, and the plaintiff's claim cannot be complied with.

However, there is no evidence to acknowledge the debt approval of Defendant Park CC, and the head of Defendant ChoB’s order is without merit.

3. Conclusion

If so, the plaintiff's claim is reasonable and acceptable.