Where the ownership of the subject matter of chonsegwon is transferred after the establishment of chonsegwon, whether the chonsegwon continues to exist between the person having chonsegwon and the new owner who acquired the ownership of the subject matter (affirmative), and whether the new owner of the subject matter bears the obligation to return the deposit in the position of the settlor of chonsegwon when the right of chonsegwon is extinguished

If the ownership of the subject matter of chonsegwon is transferred after the establishment of chonsegwon, the settlor of chonsegwon or the owner of chonsegwon who is a party to legal relations, such as a claim for redemption, extinguishment, request for renewal, demand for increase or decrease of the deposit money, restoration to original state, and demand for purchase, etc., arising from the relationship between the person having chonsegwon and the new owner who acquired the ownership of the subject matter, shall be deemed to continue to exist with the same content between the person having chonsegwon and the new owner who acquired the ownership of the subject matter. Therefore, the new owner of the subject matter shall be liable to return the deposit to the person having chonsegwon in the position of the settlor when the chonsegwon ceases to exist

Articles 303, 310, 311, 312, 312-2, 316, and 317 of the Civil Act

[Plaintiff-Appellant-Appellee] Plaintiff 1 and 1 other (Law Firm Han, Attorneys Lee Dong-young et al., Counsel for plaintiff-appellant-appellee)

Plaintiff (Law Firm Han-ro, Attorneys Kim Shin-ok, Counsel for the plaintiff-appellant)

Defendant (Attorney Hong Hong-han et al., Counsel for the defendant-appellant)

Seoul High Court Decision 2005Na13075 delivered on December 14, 2005

The appeal is dismissed. The costs of appeal are assessed against the defendant.

1. The contract that transfers the right to lease on a deposit basis for the purpose of bond security shall be deemed valid. Thus, the additional registration of the right to lease on a deposit basis for such contract cannot be deemed invalid registration that is inconsistent with the substantive relationship. Therefore, the ground of appeal on this point cannot be accepted

The Supreme Court precedents alleged in the grounds of appeal are inappropriate to be invoked in the instant case, since they differ from the matter.

2. If the ownership of the subject matter of chonsegwon is transferred after the establishment of chonsegwon, the Civil Act does not have to be changed to the new owner who acquired the ownership of the subject matter. Thus, the right to lease on a deposit basis shall continue to exist between the person having chonsegwon and the new owner who acquired the ownership of the subject matter. Therefore, when the right to lease on a deposit basis becomes a direct party to the rights and obligations of the right to lease on a deposit basis established between the former owner and the person having chonsegwon and the new owner who acquired the subject matter, the new owner of the subject matter shall be deemed to bear the obligation to return the deposit in the position of the settlor of chonsegwon (see Supreme Court Decision 9Da15122 delivered on June 9, 200, etc.).

In the same purport, the court below's decision that the new owner of the object of chonsegwon has the obligation to return the deposit to the defendant is proper, and there is no error in the misapprehension of legal principles as to the change of the real right or the

3. Therefore, the appeal is dismissed, and the costs of appeal are assessed against the losing party. It is so decided as per Disposition by the assent of all participating Justices.

Justices Kim Ji-hyung (Presiding Justice)