1. The Defendant shall pay to the Plaintiff KRW 154,323,738 as well as 24% per annum from July 15, 2016 to the day of full payment.

1. Facts of recognition;

A. On December 29, 2010, the Plaintiff lent KRW 200 million to the Defendant. The Plaintiff and the Defendant set the interest rate of KRW 18% per annum on the loan, interest rate of arrears rate of KRW 24% per annum, and due date of payment December 29, 201. The Defendant issued the Plaintiff a right to collateral security regarding C’s real estate at the time of public offering.

B. In order for the Defendant to not pay interest from May 30, 2014, the Plaintiff applied for a voluntary auction on the real estate above which set up the right to collateral security, and received dividends of KRW 150,95,295 on July 14, 2016. The cost of enforcement in the above auction case is KRW 3,168,636.

[Grounds for Recognition] Unsatisfy, each entry of Gap 1 through 5 (including each number), the purport of the whole pleadings

2. The assertion and judgment

(a) If the obligor is to pay the expenses and interest, and the person effecting performance has effected the performance which was fully extinguished, such performance shall be appropriated in the order of the expenses, the interest and the principal;

(Article 479(1) of the Civil Act. Accordingly, KRW 150,95,295, which the Plaintiff received dividends on July 14, 2016, was appropriated for KRW 24% per annum from May 30, 2014 to July 14, 2016 according to the Plaintiff’s calculation, for the overdue interest of KRW 102,110,397, and KRW 45,676,262 out of the principal amount of KRW 200 million.

Therefore, barring special circumstances, the Defendant is obligated to pay the Plaintiff the remaining principal of KRW 154,323,738 and damages for delay calculated at the rate of 24% per annum from July 15, 2016 to the date of full payment.

B. On February 2014, the Defendant asserts that there is no interest agreement on the above loan to the Defendant during a tax investigation conducted at the tax office, and that no interest has been paid so far, and that if the real estate was sold, the bank grants even the owner of the real estate, and that no interest accrued in the future would accrue from May 30, 2014, and that the dividend received by the Plaintiff should be appropriated for the repayment of the principal.

Seo Daejeon Daejeon District Court Decision ..