In relation to the case of the application for the auction of the D's real estate in Suwon District Court, the above court prepared on October 15, 2019.

1. Basic facts

A. On February 26, 2009, the registration of the establishment of a mortgage was completed over the maximum debt amount of KRW 1,053,000,000 with respect to E, E, 1917 square meters (hereinafter “instant land”).

B. Meanwhile, on July 5, 2010, Defendant B lent 80 million won interest rate of 3% per month, due date for repayment on December 4, 2010 to the Plaintiff (hereinafter “instant loan”). In order to secure the foregoing loan claims, Defendant B completed the registration of creation of a neighboring mortgage of KRW 150 million (hereinafter “registration of creation of a neighboring mortgage”) in the name of Defendant B with respect to the instant land owned by the Plaintiff as of the same day in order to secure the foregoing loan claims.

C. On October 31, 2018, Defendant B filed a request for auction of the instant land to D with this Court based on the instant collateral security right, and on November 1, 2018, the pertinent auction procedure was commenced.

On October 15, 2019, this Court prepared a distribution schedule with the content that distributes to Defendant C in the order of 823,454,856 won (i.e., the principal amount of KRW 810,000,000) to Defendant C in the order of 150,000 won, and (ii) to Defendant B in the order of 2.

E. The Plaintiff participated on the aforementioned date of distribution, thereby raising an objection against the entire amount of distribution to Defendant B and the interest (13,454,856 won) out of the amount of distribution to Defendant C Cooperatives. The Plaintiff filed a lawsuit of demurrer against the instant distribution on October 18, 2019, within one week thereafter.

[Ground of recognition] Facts without dispute, entry of Gap 1 to 5 evidence, purport of the whole pleadings

2. Defendant B’s judgment on the main defense of Defendant B’s main defense is to distribute the amount of KRW 13,454,856 out of the dividend amount against Defendant B and the amount of KRW 13,454,856, on the premise that the Plaintiff’s creditor G, who received the third priority in the above auction procedure, filed a separate lawsuit of demurrer against the Defendants (this Court Decision 2019Da57829).