1. The defendant's appeal is dismissed.

2. The costs of appeal shall be borne by the Defendant.

Purport of claim and appeal

1...

1. Facts of recognition;

A. From May 22, 2006 to June 6, 2006, the Plaintiff lent a total of KRW 94 million to C.

B. On July 5, 2006, C prepared a loan certificate to the Defendant stating that “The amount of creation of collateral shall be KRW 300 million and the maximum debt amount shall be KRW 400 million” in the name of C, a third village.

C. On July 6, 2006, the Plaintiff remitted KRW 50 million to the Defendant, and the Defendant transferred KRW 200 million to C on the same day, and the Defendant prepared and issued a loan certificate to the Plaintiff to the effect that the Plaintiff borrowed KRW 50 million on the same day.

On July 6, 2006, C completed the registration of creation of a collateral security (hereinafter “instant collateral security”) with respect to the first floor of E and F 101 (hereinafter “instant building”) out of the building E and F 6 floors, which was trusted by C to D, on July 6, 2006.

E. C remitted 5.88 million won to the Defendant each month, and the Defendant remitted 2.88 million won to the Plaintiff each month for 28 months from August 8, 2006 to November 7, 2008.

F. C, on October 16, 2007, received the registration of ownership transfer from D with respect to the instant building in its name, and completed the registration of ownership transfer based on sale and purchase to G as its employee on the same day, and the Defendant and G completed the registration of change of the right to collateral security changing the debtor into G on October 19, 2009 on the ground of the acquisition of the contract as of October 15, 2009.

G on October 19, 2009, the G set up and awarded to the Defendant a loan certificate stating that “The amount of collateral security shall be KRW 294 million from the Defendant and shall be KRW 400 million with the maximum debt amount, and the monthly interest rate shall be 2% with the maximum debt amount.”

G. On May 1, 2016, the Defendant: (i) the principal amount of KRW 364 million in the Daejeon District Court’s Incheon District Court’s Branch; and (ii) interest for delay calculated at the rate of 24% per annum from October 1, 2015 to the principal amount of KRW 294 million; and (iii) interest for delay calculated at the rate of 24% per annum from October 1, 2015; and (iv) the principal amount of KRW 70 million and interest for delay calculated at the rate of 24% per annum from October 1, 2015.