The criteria for determining whether to specify a subject matter and the scope of the subject matter in the contract to establish security for the aggregate of movable property, the increase or decrease of a group;

On the other hand, in the case of the so-called contract to establish a security for collateral for the so-called collective object which takes the effect of the security for collateral by treating the movable property as a single object, it is necessary to specify the subject matter in order to protect the third party from causing unexpected damages and to clarify legal relationship in advance so that the execution procedure is not unfairly delayed. As such, the subject matter must be identified externally and objectively by means of the type of the contract, location or quantity of the object so that it can be distinguished from other objects of the collateral, and whether to specify the subject matter and its scope should be determined by comprehensively taking into account various circumstances such as the whole contents of the contract on the type, place, quantity, etc. of the object, the intent of the contracting party, the degree of organic combination of the subject matter itself, the nature of the subject matter, the management and use method, etc.

Article 372 of the Civil Act

Supreme Court Decision 87Nu1043 Decided December 27, 1988 (Gong1989, 244) Supreme Court Decision 88Meu2024 Decided December 26, 1990 (Gong191, 601)

Korea Industries Co., Ltd. (Law Firm Sejong, Attorneys Jeon Jeon-soo et al., Counsel for the defendant-appellant)

Agururian Republic of Korea (Law Firm Agyal General Law Office, Attorneys Dogn-hwan et al., Counsel for defendant-appellant)

Daegu High Court Decision 2002Na4499 delivered on November 15, 2002

The appeal is dismissed. The costs of appeal are assessed against the plaintiff.

On the other hand, in the case of the so-called contract to establish a security for collateral for the so-called aggregate object, which takes the change in the value of movable property as one object of collateral, it is necessary to specify the subject matter in order to prevent losses to the third party by specifying the scope of effect of the security for collateral and to clarify legal relationship in advance so that the execution procedure is not unfairly delayed. Thus, the subject matter must be identified externally and objectively by means of the type, location or quantity of the object so that it can be distinguished from other objects (see Supreme Court Decision 88Meu2024, Dec. 26, 1990, etc.). The existence and scope of the subject matter should be determined specifically in full view of various circumstances such as the whole contents of the contract on the type, place, quantity, etc. of the object, the whole contents of the contract on the type and quantity of the object, the intent of the contracting party, the degree of organic combination of the subject matter itself, the nature of the object, the management and use method

Examining the facts as indicated in its reasoning by evidence, the lower court rejected only 140-1, 140, 62-1, and 662-1, on the basis of the fact-finding of the Plaintiff’s new swine farm, on the condition that the number of new swine farms was 140 or 140-1, and only 140 percent of the total number of new pigs transferred for transfer within the same area were indicated on the ground of this case’s agreement, based on the premise that the Plaintiff’s new pigs transferred for transfer was 140,000,000 won of new pigs transferred for transfer and 140,000,000 won of new pigs transferred for transfer and 50,000 won of new pigs transferred for transfer and 140,000 won of new pigs transferred for transfer and 140,000 won of new pigs transferred for sale and 140,000 won of new pigs transferred for sale and 140,000 won of new pigs transferred for sale.

Therefore, the appeal is dismissed. It is so decided as per Disposition by the assent of all participating Justices on the bench.

Justices Lee Ji-dam (Presiding Justice)