After transferring business funds, “Return the borrowed money”…Law “It cannot be considered a loan.”

The Supreme Court issued a final dismissal of a case in which a person transferred business funds on his behalf and was sued for return of the loan.

The First Division of the Supreme Court announced on the 4th that on December 26 last year, it confirmed the original decision that ruled that the plaintiff lost in the appellate trial of a loan lawsuit filed by Mr. A, in his 70s, against business owner B.

In 2016, Mr. A got to know Mr. B, the CEO of the company where his son works, and transferred 200 million won to Mr. B on two occasions in 2018.

Mr. A claimed that the amount was a loan.

The claim is that Mr. B complained of financial difficulties and requested a loan.

At the same time, Mr. A filed a lawsuit claiming that he only received 100 million won back through his son's account, and the remaining 100 million won was not returned.

However, Mr. B said that he never asked for money to be loaned, and that he only delivered the amount necessary for the business as requested.

The first trial ruled in favor of Mr. B, saying, "After receiving the money from the plaintiff, the defendant sent the money to the company's account on the same day or the next day. Although the defendant is the CEO of the company, the plaintiff's son also serves as an inside director and also owns shares."

At the same time, it was determined that “the plaintiff also appears to have been involved in the operation of the company through his son,” and that “the 200 million won that the defendant sent to the plaintiff cannot be considered a loan.”

Mr. A, who was dissatisfied with the first trial ruling, appealed, but the second trial court dismissed the claim, saying, “The reasons for the plaintiff’s appeal are not significantly different from the claims of the first trial.”

The Supreme Court also dismissed the appeal and confirmed the original judgment.

Attorney Lim Seon-jun of Daeryun Law Firm, who acted as legal representative for Mr. B, said, "If it was a loan as Mr. A claimed, he should have lent the money for a certain period of time and received interest, but he has not once requested repayment from Mr. B. Even looking at these facts, Mr. A borrowed an account in Mr. B's name to transfer business funds to a company he owns."
 

Reporter Jeong Eui-jin (jej88@ikbc.co.kr)

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After transferring business funds, "Return the borrowed money"...Law "It cannot be considered a loan" (Shortcut)