All appeals are dismissed.

The costs of appeal are assessed against the Defendants.

The grounds of appeal are examined.

1. On the grounds indicated in its reasoning, the lower court: (a) premised on the premise that CF (hereinafter “Nonindicted Partnership”) was an indirect subsidy program operator prescribed in the Subsidy Management Act (amended by Act No. 10898, Jan. 28, 2016; and (b) concluded a mortgage contract on the instant building, which is an important property acquired with the instant subsidy, in violation of Article 35(3) of the Act on the Subsidy, without approval from the head of a central government agency; and (c) determined that the establishment of a mortgage contract is null and void; and (d) the establishment of a mortgage registration was also null and void.

2. On July 25, 201, Article 35 of the former Subsidy Budget and Management Act (amended by Act No. 10898, Jul. 25, 2011; hereinafter “former Subsidy Act”) only provides that “A subsidized project operator may not provide important property acquired with a subsidy as a security,” and the indirect subsidy project operator did not expressly provide for an indirect subsidy project operator.

Article 2 of the former Subsidy Act defines “subsidized Subsidy Project Operators” and “Indirect Subsidy Project Operators” and regulates indirect Subsidy Project Operators by explicitly distinguishing them from each individual provision. Article 35 of the former Subsidy Act comprehensively takes into account the regulatory structure and method of the former Subsidy Act and the legislative intent of Article 35 of the former Subsidy Act, such as not specifying “Indirect Subsidy Project Operators” and “Indirect Subsidy” as eligible for indirect Subsidy, etc., Article 35 of the former Subsidy Act does not apply to indirect Subsidy Project Operators (see Supreme Court Decision 2015Da247257, Nov. 15, 2018). Therefore, even where an indirect Subsidy Project Operators provided property acquired as indirect subsidy as security, the validity thereof is not affected.

3. The main sentence of Article 35(3) of the amended Subsidy Act shall apply to a subsidy program operator or an indirect subsidy program operator.