1. All appeals by the Defendants are dismissed.

2. The costs of appeal are assessed against the Defendants.

Purport of claim and appeal

(b).

1. The court's explanation of this case is identical to the part concerning the defendants in the reasoning of the judgment of the first instance except for the following reasons. Thus, this case shall be quoted in accordance with the main sentence of Article 420 of the Civil Procedure Act.

2. In the part of the judgment of the court of first instance, “Defendant Company” in the judgment of the court of first instance shall be deemed to be “Codefendant A Codefendant A of the court of first instance,” and “Defendant B” to be “Codefendant B of the court of first instance.”

According to the result of the response to each order to submit financial transaction information to the NN corporation, the Small and Medium Venture Business Promotion Foundation, and the AO corporation, the first instance court’s joint Defendant A, B (hereinafter “A”, and “B”) had already been in arrears with interest on loans to financial institutions on or around May 2017. The Defendants and B concluded on May 19, 2017 with the Defendants to the instant collective security agreement (hereinafter “instant collective security agreement”).

The following shall be added between 8th and 13 of the first instance judgment:

The Defendants asserted that the instant mortgage contract was inevitably made in the course of financing new funds in the best way to continue the business and did not constitute a fraudulent act, since B used the entire or most of the money borrowed from the Defendants to resolve the financial difficulties of A and repay its business debts.

Unless there are special circumstances, the debtor's act of establishing a security interest is considered to be the best way for the debtor to continue his/her business by financing funds in a situation where it is difficult to continue his/her business due to financial difficulties, and in cases where the debtor provided real estate as security to a specific creditor to lend new funds, and received additional loans from him/her.