Abstract
This paper reviews the Supreme Court's Decision 2018 Da 268538 sentenced on December 30, 2021, which determined the legal relationship when chonsegwon is established to secure a lease deposit return bond. The main issues in this ruling are whether chonsegwon is valid for the purpose of securing such bonds and whether the settler of a leasehold can claim a deduction for overdue payments under an internal lease agreement from the mortgagee of the leasehold if a mortgage is set on chonsegwon. First, the validity of chonsegwon to secure a leasehold security deposit return bond needs to be examined from the perspective of the nature of chonsegwon, statutory real property right principle, and sham transaction jurisprudence. In principle, this type of chonsegwon is valid unless the possibility of use and profit by the leaseholder is completely excluded. However, any part of the leasehold transfer agreement that is incompatible with the internal lease agreement constitutes a sham transaction and is invalid. A valid cause of action exists in a leasehold transfer registration if the partial invalidity doctrine of Article 137 of the Civil Code is applied. The next issue is whether the settler of a lease can claim a deduction for overdue payments under a lease agreement for internal reasons in response to the exercise of its surrogation right of the security deposit return bond of the mortgagee of the leasehold. The judgment reconciles the interests of the parties by applying the law of general debt enforcement or the law of false representation. The settler of the leasehold cannot claim a deduction for overdue payments under a lease agreement against a mortgagee who is unaware that the mortgagee has a lease agreement with the settler. However, the settler may claim a deduction for overdue payments under a lease agreement from a mortgagee who is aware that the settler has entered into such a lease agreement. The relevant judgment was reasonable in light of balancing the parties' conflicting interests.
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