The costs of appeal are assessed against the Plaintiff.

1. Regarding ground of appeal No. 1

A. Article 38-2(1) and (2) of the former Restriction of Special Taxation Act (amended by Act No. 6762 of Dec. 11, 2002; hereinafter “former Act”) provides that where a national invests stocks in kind in a domestic corporation that incorporated a holding company under the Monopoly Regulation and Fair Trade Act (hereinafter “holding company”) or converted a holding company into a holding company (hereinafter “converted holding company”) as an investment in kind, the transfer income tax, etc. on the amount equivalent to the transfer margin accruing from the investment in kind, etc. of stocks acquired by the investment in kind, etc. of the holding company or converted holding company (hereinafter “holding company, etc.”) may be deferred until the national disposes of the stocks of the holding company, etc., and Article 38-2(3)2 of the same Act (hereinafter “instant provision”) provides that the taxation of transfer income tax shall be deferred until the national disposes of the stocks of the holding company, etc.

B. In full view of the adopted evidence, the lower court: (a) established D on July 2, 2001 in order for the Plaintiff, the president of the Group B, to convert the Group B into a holding company system (hereinafter “D”); (b) invested shares of Company E, 3,827,262; and (c) 15,000 shares of Company F, in kind, in D; and (d) received shares 2,862,861 shares from D; (b) was subject to a deferred taxation of capital gains tax on the amount equivalent to the gains from the transfer of shares generated from the said investment in kind pursuant to Article 38-2(1) and (2) of the former Special Assistance Act; and (c) thereafter, the Plaintiff was a public-service foundation, the president of which was a public-service foundation, on May 8, 2009.