Lawsuit to recover a business loan and protecting the claim through provisional attachment of factory real estate

A creditor who had made several loans of business funds was unable to obtain repayment from the debtor as agreed, giving rise to a dispute.

The debtor promised to repay the loans by taking out a loan from a financial institution after having existing provisional attachments on his factory site and building released, but even after that he did not repay the debt.

Attorney Jaehoon Lee represented the creditor, filed a lawsuit for repayment of the loans, and handled the protection of the claim through provisional attachment of the debtor's real estate and in the compulsory auction proceedings.

The key issues were determining the amount of the outstanding loan claim based on the multiple loans and partial repayments, and assessing the evidentiary weight of a cash custody receipt the debtor had signed.

Further questions were whether there was a need for provisional relief to secure future compulsory enforcement when the debtor's real estate was already subject to a mortgage and numerous provisional attachments, and how to secure the creditor's rights in the compulsory auction proceedings.

Attorney Lee reviewed bank transfer confirmations, the cash custody receipt, and the record of repayments on earlier loans to establish how the unpaid claim arose and its amount, and filed a lawsuit for repayment of the loans.

In particular, he analyzed the certified copies of the register for the debtor's factory site and building to confirm the existing security interests and provisional attachments, and applied for provisional attachment of the real estate in light of the debtor's financial condition and the prospects for recovery.

In addition, when compulsory auction proceedings began on the property, he submitted a statement of claim on behalf of the creditor as a provisional attachment holder and took the steps needed to protect the creditor's rights.