1. It shall be prepared by the same court with respect to the compulsory auction of real estate D or E (Dual) in Busan District Court on December 10, 2014.

1. Basic facts

A. A was declared bankrupt on September 27, 2013, and the Plaintiff was appointed as a trustee in bankruptcy.

B. On May 1, 2012, the Defendant registered the creation of the instant mortgage with respect to F apartment Nos. 7 and 103 (hereinafter “instant real property”) owned by the Plaintiff, the maximum debt amount of which is KRW 45 million.

C. In the Busan District Court D, E (Dual) Real Estate Compulsory Auction case with respect to the instant real estate, the said court prepared a distribution schedule stating that KRW 17,213,454 out of the proceeds of sale shall be distributed to the Defendant, who is the first collateral security (hereinafter “instant distribution schedule”) on December 10, 2014.

On the date of distribution, the Plaintiff, a trustee in bankruptcy, raised an objection to the whole amount of the Defendant’s dividends, and filed the instant lawsuit on December 17, 2014.

E. A was in insolvency status at the time of the completion of the registration of the establishment of the instant neighboring mortgage.

[Ground of recognition] Facts without dispute, entry of Gap evidence 1 to 7, purport of the whole pleadings

2. The assertion and judgment

A. The “act of having knowledge that the debtor would inflict damage on the bankruptcy creditors”, which is an act subject to a avoidance as prescribed by Article 391 subparag. 1 of the Debtor Rehabilitation and Bankruptcy Act regarding the cause of the claim, includes not only fraudulent act of reducing the bankruptcy estate by deviating from the bankruptcy estate of the debtor’s general property, which is a joint security for all creditors, but also so-called letter-off act that not only affects the debtor’s property relationship, such as repayment or provision of security to a specific creditor, and thereby affects a specific creditor’s property relationship, thereby favorable to the debtor’s dividends and undermining equal distribution among bankruptcy creditors (see, e.g., Supreme Court Decision 2011Da56637, 5644, Oct. 13, 201). This case’s collateral security right is also held against the defendant, a part of the creditors.