1. The plaintiffs' claims are dismissed.

2. The costs of lawsuit are assessed against the plaintiffs.

1. Facts of premise;

A. On September 23, 2011, Plaintiff A drafted a written contract for the acquisition of convertible bonds with the E Co., Ltd. (hereinafter “E”) operated by D to acquire KRW 400,000 of convertible bonds issued by E as an investment in kind with the amount of KRW 400,00 won.

According to Article 13 of the above acceptance contract, the plaintiff A has to set up a right to collateral security as security for obligations under the above contract.

On the same day, Plaintiff A, on behalf of the Plaintiffs, prepared a document to establish the right to collateral security with regard to each of the real estate listed in the separate sheet owned by the Plaintiffs (hereinafter “instant real estate”), on behalf of the Plaintiffs as the Plaintiffs, provided it to D along with the Plaintiffs’ certificate of personal seal impression, etc., and D prepared and submitted to the Defendant a document of “a monetary loan agreement and the confirmation of establishment of collateral security” with regard to the Defendant’s obligation arising from the Defendant’s lending of funds up to the point of time, and submitted the document of “a monetary loan agreement and the confirmation of repayment period,” which was as of October 20, 201.

On the same day, the Defendant, using the above registration document, completed the registration of the establishment of a neighboring mortgage (hereinafter “registration of the establishment of the first neighboring mortgage”) with the debtor D and the maximum debt amount as KRW 600 million under the name of the Seoul Northern District Court No. 60875, Sept. 23, 2011 regarding the instant real estate in the name of the Defendant.

B. On December 30, 201, Plaintiff A, on behalf of the Plaintiffs, prepared a loan agreement for consumption under the names of the Plaintiffs, the obligor and the offerer of the right to collateral security (hereinafter “Plaintiff A”) totaling KRW 900 million ( KRW 600 million on September 23, 201, KRW 300 million on December 30, 201), and the due date for payment on March 30, 2012, with the obligee as the Defendant, the obligor and the offerer, and the obligee as the Defendant and D, an authentic document on the loan for consumption under the names of the Plaintiffs, and provided D with a certificate of personal seal impression as to the instant real estate.

The defendant on the same day.