Seoul High Court 2010Na36355 (Law No. 17, 2010)

When a trust relationship is established under the Trust Act, a seizure disposition shall be null and void against the trust property.

Considering the fact that the purpose of the legislation is to ensure the independence of trust property in order to smoothly achieve the purpose of the trust, "the right that occurs in the course of performing the trust affairs" prescribed exceptionally in the proviso includes only the right of the trustee as the debtor, and making the truster as the debtor does not include this.

2010Da86075 Seizure, Cancellation, etc.

AA QN Movables Trust Co., Ltd.

Korea

Seoul High Court Decision 2010Na36355 Decided September 17, 2010

May 9, 2012

The judgment below is reversed and the case is remanded to Seoul High Court.

The grounds of appeal No. 1 are examined.

Article 1(2) of the Trust Act provides that "The trust property of the non-party 2 is not subject to compulsory execution or auction for the benefit of the beneficiary," and Article 21(1) provides that "the trust property of the non-party 2 shall not be subject to compulsory execution or auction for the following reasons: Provided, That this provision does not apply to the rights arising from the cause of the trust or the rights arising from the disposal of the trust property of the non-party 1, which occurred under the proviso of Article 1(2) of the Trust Act; the trust property of the non-party 2 is not subject to ownership transfer to the trustee in internal and external relations with the truster (see, e.g., Supreme Court Decisions 200Da70460, Apr. 12, 202; 2005Da9685, Sept. 7, 2007, etc.)" which is subject to separate execution or sale of the trust property of the non-party 1, which is subject to separate execution.