All appeals are dismissed.

The costs of appeal are assessed against the Defendants.

The grounds of appeal are examined.

1. Claims corresponding to wages for the last three months under Article 37 (2) of the Labor Standards Act, accident compensations, and retirement allowances for the last three years of retirement under Article 11 (2) of the former Guarantee of Workers' Retirement Benefits Act (wholly amended by Act No. 10967, Jul. 25, 2011) shall be paid in preference to claims secured by security rights under the Act on Security over Pledges, Mortgages, Movables, Claims, Etc. on the whole property of the employer, taxes, public charges, and other claims;

The purpose of the provision is to restrict the validity of the general security right in the public’s request to guarantee workers’ minimum living, and to provide preferential rights to payment of wage claims. The purport of the provision is only the right to receive preferential payment, regardless of the establishment thereof or the establishment of a pledge right or a mortgage, in a case where a claim on wages, etc. for the last three months competes with the same property of the employer at the same time. Therefore, even if a wage creditor who has the right to preferential payment under the Labor Standards Act, etc. is a wage creditor who has the right to preferential payment under the Labor Standards Act, the right to receive preferential

In this context, wages of the last three months refer to the unpaid amount out of the wages for which the grounds for payment arose between three months retroactively from the termination date of labor relations (see, e.g., Supreme Court Decisions 98Da47412, Apr. 9, 199; 2006Da1930, Jun. 26, 2008) and the unpaid amount from the time of demand for distribution, in cases of workers whose labor relations have not been terminated even at the time of demand for distribution, which means the unpaid amount between three months retroactively from the time of demand for distribution and the time of demand for distribution.

In addition, retirement allowances for the last three years should also be seen as the same, so there should be grounds for payment of retirement allowances not later than the completion date of demand for distribution.