2. The costs of lawsuit shall be borne by the Plaintiff.

(a) Division and merger of (States) and banks ( April 1, 2006);

(a) Credit card business portion: A merger with a divided credit card;

(2) 나머지 은행사업 부분 : 은행법 제3조에 의해 구 (주)@@은행을 합병한 후 명칭을 (주)@@은행으로 변경

(b) Reporting on and paying education tax for the R&A banks (No. 4, 2003 - No. 1, 2006);

The amount of revenue generated in the part of credit card business and profits from the sale of loans accrued in the part of banking business shall be included in the education tax tax base.

C. Disposition rejecting reduction or correction of education tax on education tax listed in the Defendant’s attached disposition list (hereinafter “instant disposition”).

(1) Date of disposition: the same as the date of disposition in the separate sheet of disposition; and

(2) Grounds for disposal: The following profits are the revenue amount of a financial or insurance business entity which is the education tax base:

(A) The credit sales commission, installment commission, cash service commission, card interest, annual fee, foreign currency credit card fee, etc. (hereinafter “the credit card revenue of this case”) generated in the part of the credit card business while concurrently running the credit card business from April 2003 to January 2006.

(B) Profits from the sale of the loan claims held by R&C in 2004, 23,679,272,842 (hereinafter “gains from the sale of the loan claims”) arising from the sale of the loan claims held by it in 371

D. The procedure of the preceding trial: The dismissal of the appeal filed by the plaintiff on June 20, 2008 and June 23, 2008, respectively.

[Ground of recognition] Facts without dispute, entry of Gap 1 to 4 evidence (including each number), the purport of the whole pleadings

2. Whether the dispositions of the instant case are legal.

(a) Plaintiff’s principal: Niment of the income subject to education tax;

(1) Revenue from the credit card of this case: Revenue from a credit difference business entity which is not a banking revenue.

(2) Gains from the sale of loan claims in this case: "Internal profits as provided by Article 4 (2) 2 of the Enforcement Decree of the Education Tax Act" is the same as the bad debts allowance refunded.

(b) Review of relevant Acts and subordinate statutes (the original text of the relevant Acts and subordinate statutes shall be as shown in attached Form);

(1) Taxpayers of education tax (Article 3 subparagraph 1, attached Table)

(A) Summary: A person who runs a financial or insurance business in Korea (hereinafter referred to as a "financial or insurance business entity");

(B) Specific scope

○ Financial Institution (including a domestic branch of a foreign bank and excluding a financial institution established by a special Act; hereinafter referred to as a “bank”) provided for in Article 3 of the former Banking Act (amended by Act No. 8863, Feb. 29, 2008; hereinafter referred to as the “the Banking Act”).

○ Otherwise: the Korea Development Bank, the Industrial Bank of Korea, the Insurance Bank, the Merchant Banks, the Merchant Banks, the insurance companies, the National Agricultural Cooperatives Federation, the National Federation of Fisheries Cooperatives, the trust companies,

(2) Income subject to education tax

(a) Outline: Revenue amount of a financial or insurance business entity;

○ Interest, dividend, commission, guarantee fee, insurance premium, etc. (Article 5(1) and (3) of the Education Tax Act)

○ Proceeds from sale or redemption of securities: Acquisition value calculated pursuant to Article 41 of the Corporate Tax Act shall be deducted from the sale or redemption price (Article 4(3) of the Enforcement Decree of the Education Tax Act).

(B) Scope of specific proceeds (Article 4 (1) of the Enforcement Decree of the Education Tax Act)

○Import Fees, Trust Fees and Distribution of Profits, Trust Fees, Foreign Exchange Sales Profits (other than Foreign Exchange Appraisal Profits), Import Rent, and Fixed Assets Disposal Profits

○ Other operating income and non-operating income.

○ Securities Appraisal Profit: It was listed in Article 4 (1) 4 of the former Enforcement Decree of the Education Tax Act (amended by Presidential Decree No. 18630 of December 31, 2004), but deleted this part thereafter.

(c)The revenue exclusion targets;

Article 4(2) of the Enforcement Decree of the Education Tax Act - Internal profits

-National subsidies, insurance marginal profits, gains on repayment of debts, gains on debt collection, and gains on the increase in assets;

- the amount of overseas revenue, value of goods or services on which value-added tax is levied, revenue premiums under reinsurance contracts, insurance premiums for delivery, profits from delivery, and household effects fees;

- Marginal profits from revaluation of assets: The latter part of Article 4 (2) 3 of the former Enforcement Decree of the Education Tax Act (amended by Presidential Decree No. 18630 of December 31, 2004) was deleted.

Article 4 (4) of the former Enforcement Decree of the Education Tax Act (amended by Presidential Decree No. 19898, Feb. 28, 2007; hereinafter referred to as the "Enforcement Decree of the Act"): Of the profits of merchant banks, the rental fees for facilities and profits from the sale of leased assets incurred by the operation of facilities leasing business under the Specialized Credit Finance Business Act shall be excluded.

(c)the business structure of the bank;

(a) Definition of a bank: Any financial institution other than the Bank of Korea (Article 2(1)1 and 2(1)2 of the Banking Act) which regularly and systematically conducts such banking business as lending funds raised by bearing debts from many and unspecified persons through the receipt of deposits and issuance of securities and other bonds;

(b) banking business;

○ Matters authorized by the Financial Supervisory Commission (Article 8 (1) of the Banking Act)

○ Specific Scope [Article 8(2) of the Banking Act, Article 18-2 of the former Enforcement Decree of the Banking Act (amended by Presidential Decree No. 20653, Feb. 29, 2008; hereinafter “Enforcement Decree of the Banking Act”)]

- Receiving deposits and installment savings or issuing securities and other debt instruments

- loan of funds or discount of notes

-domestic and foreign exchange

- Business incidental to the respective business (public notice business of the Minister of Finance and Economy);

(C) Concurrent business (other than banking business)

○ Matters authorized by the Financial Supervisory Commission (Article 28 (1) of the Banking Act)

○ Specific Scope (Article 18-3 of the Enforcement Decree of the Banking Act)

- Trust business under the Trust Business Act

-credit table services in the Specialized Credit Financial Business Act;

- Business of an asset management company under Article 4(2) of the Act on Business of Operating Indirect Investment and Assets, and of a sales company under Article 26.

-any other business related to banking business which is determined by the Ordinance of the Ministry of Finance and Economy;

(4) The business structure of the card company;

(A) Definition [Article 2 subparagraph 2 of the former Specialized Credit Finance Business Act (amended by Act No. 8863 of Feb. 29, 2008; hereinafter referred to as "Credit Act")]

○ Credit card business: A business of carrying on two or more services including the following services:

Issuance and Management of Credit Cards for the Corporation

The settlement of payments related to the use of credit cards.

V. Solicitation and management of credit card merchants

○ Credit card company: Any of the following companies:

A company permitted or registered by the Financial Supervisory Commission (Article 3 (1) of the Credit Act)

【Special Cases concerning the Maritime Affairs and Trade Act (Article 3(3)1 proviso of the Credit Act, Article 3(1) of the former Enforcement Decree of the Credit Act (amended by Presidential Decree No. 20549 of Jan. 18, 2008, hereinafter referred to as “Enforcement Decree of the Credit Act”)】

- Some financial and insurance companies under the Education Tax Act: Banks, the Korea Development Bank, the Industrial Bank of Korea, the Bank of Korea, and the Bank.

- Other: the Export-Import Bank of Korea, Mutual Savings and Finance Cooperatives Federation, National Federation

(b) A credit card company’s ancillary business (Article 13 of the Credit Card Act) - The credit card company’s ancillary business to the credit card holders.

- Issuance and settlement of debit cards

-issuance and sale of prepaid and settlement of payments;

(5) Business structure of the merchant bank

(A) Matters to be authorized by the Financial Supervisory Commission [Article 3 of the former Merchant Banks Act (amended by Act No. 8909 of March 14, 2008; hereinafter referred to as the "Jain Act}

(B) Original duties [Article 7(1) of the Religious Act, Article 6-4(1) of the former Enforcement Decree of the Religious Act (amended by Presidential Decree No. 20947 of July 29, 2008; hereinafter referred to as the "Enforcement Decree of the Religious Act")]

○ Issuance, discount, trade, brokerage, acceptance, and guarantee of bills and debentures

○ Investment in and financing of facilities or driving capital

○ Business under Article 2 (8) 5 through 7 of the Securities and Exchange Act and the transaction, etc. under subparagraph 5 (b) or (c) of Article 2-3 of the Enforcement Decree of the Securities and Exchange Act (limited to the transaction, etc. for the share price index)

(C) Concurrent business (Article 7(2) of the Closing Justice Act, Article 6-4(2) of the Enforcement Decree of the Closing Justice Act)

○ Equipment Rental Business under the Specialized Credit Finance Business Act

○ Duties under Article 2 (8) 1 through 4 of the Securities and Exchange Act

○ Business Affairs of an asset management company under Article 4 (2) 1 and 2 of the Indirect Investment Asset Management Business Act and business affairs of a selling company under Article 26 of the same Act

○ Foreign exchange business under the Foreign Exchange Transactions Act by trust business other than money trust under the Trust Business Act

C. Determination

(1) The principle of interpreting tax laws and regulations (see, e.g., Supreme Court Decision 2005Da19163, May 25, 2006)

(A) The principle of strict interpretation derived from the principle of no taxation without law applies to taxation requirements, non-taxation, and tax reduction or exemption requirements.

(B) Unless there are special circumstances, a tax law provision should be interpreted in accordance with the text of the law, and a wide interpretation or analogical interpretation of the tax law with favor to taxpayers shall not be permitted against the principle of equity in taxation, which is the basic ideology of the tax law.

(2) The credit card proceeds of the instant case

(A) Determination: (a) Comprehensively, the following circumstances constitute the proceeds subject to the Education Tax.

The merger and acquisition bank between the plaintiff and the plaintiff is a bank that is liable to pay education tax.

○ Banks may conduct trust business, credit card business, asset management companies and distributors' business (hereinafter referred to as "Concurrent business") with authorization from the Financial Supervisory Commission in addition to their original banking business.

From among the concurrent businesses of ○ Bank, trust services and asset management and sales services are those of trust companies and asset management companies liable to pay education tax, and profits from the above services are subject to education tax.

○ Income subject to education tax includes 'other operating income and non-operating income other than those from the main business activities of financial institutions.'

○ Other operating profit and non-business profit are revenues generated in circulation from auxiliary or incidental business activities other than the main business activity to obtain sales profit. They are distinguished from operating profit in that they are not profits generated from the main business activity, and are generated on a circular basis, regardless of ordinary and typical business activities.

○ Trust business as a concurrent business of a bank, asset management and sales business, credit card business is an incidental or incidental business activity different from the receipt of deposits and installment savings, which is the main business activity of a bank to earn sales profits, or issuance of securities and other bonds, loans or discount of bills, internal and foreign exchange, etc.

○ It is reasonable to view that the instant credit card revenue constitutes “other profit and non-business profit of the Bank” by means of credit sales commission, installment commission, cash service fee, card interest, annual fee, foreign currency credit loan commission, etc., generated from the part of the credit card business, which is concurrent businesses of the Bank.

(B) Judgment on the plaintiff's petition

○ Plaintiff’s assertion: In full view of the following circumstances, no income from education tax is earned.

-Credit card providers under the Education Tax Act are not taxpayers of education tax.

- The revenue of the credit card in this case is obtained by the Bank as a legal status of the credit card company.

- In line with the purport of the existing precedents (Supreme Court Decision 2003Du14390 Decided December 9, 2004).

•The contents of the decision: Where a securities company merges a merchant bank and operates a merchant bank, the securities company is also obligated to pay education tax on the revenue accruing from the comprehensive financial business, as it concurrently holds the status of the merchant bank.

• The plaintiff's interpretation: A securities company has a duty to pay education tax only on profits earned in the status of a merchant bank by double the legal status of a securities company.

- A clear statement to the same purport (Article 4(4) of the Enforcement Decree of the Education Tax Act): The revenue of a merchant bank which is not a taxpayer of education tax shall be excluded from the profits of a lessor under the Specialized Credit Financial Business Act (facility rental fees and profits from the sale

- The education tax liability must be determined in accordance with the specific source of revenue, not the formal legal status of financial institutions.

○ Judgment

In full view of the following circumstances (as a result of the fact inquiry into the Director of the Korean Accounting Standards and the purport of the whole pleadings), the Plaintiff’s assertion is rejected as it is without merit.

- The education tax shall be determined by the legislative policy in order to secure the financial resources required for expanding the education finance necessary for improving the quality of education. The purpose of taxation and collection shall be the taxpayer and the scope of the tax base.

- The current Education Tax Act, which was amended on December 26, 2008 and enforced on July 1, 2009, provides a specialized credit financial business company under the Specialized Credit Financial Business Act as an obligor for education tax.

- With respect to a person operating credit card business only, without imposing education tax, a bank operating credit card business shall impose an education tax on the credit card profits earned by the bank operating the credit card business, and that alone shall not undermine the impartiality of taxation or contravene the equity of taxation.

- With respect to banks concurrently operating credit card business, unlike merchant banks concurrently operating facilities leasing business, there is no express provision excluding credit card profits from the revenue amount.

A merchant bank is authorized by the Financial Supervisory Commission in addition to its original comprehensive financial business, to engage in facility leasing business, business under Article 2(8)1 through 4 of the Securities and Exchange Act (hereinafter referred to as "securities business"), business of an asset management company and a distributor, trust business other than money trust, foreign exchange business, etc. (hereinafter referred to as "combined business").

- Of the concurrent businesses of merchant banks, asset management and sales business, trust business, foreign exchange business is a taxpayer of education tax, an asset management company, a trust company, and a money exchange business operator, and the profits from each of the above businesses are subject to education tax.

-Facilities leasing services, securities business, asset management and sale, trust business, foreign exchange business, etc. as a concurrent business of a merchant bank are categorized as other business profits and non-business profits.

However, in this case, securities companies are not the taxpayers of education tax, so it is problematic whether income from the securities business is subject to education tax. However, the Education Tax Act provides that only income from the securities business shall be excluded from the facility leasing business, and it excludes income from the securities business without any explicit provision, it is insufficient to view that the education tax liability should be determined in accordance with the specific source of revenue that is not the formal legal status of financial institutions, not the formal legal status of financial institutions.

-The Education Tax Act provides that the scope of revenues subject to education tax shall be, in principle, all other profits, including other operating profits and non-business profits, and it shall not include real cash profits, nor exclude some profits for the purpose of preventing double taxation, such as the imposition of value-added tax, in principle, but shall not be a non-profit-making principle, but shall be an exception to restricting some of them.

- The scope of operations of financial institutions, such as banks, etc. and the scope of operations of specialized credit financial business operators such as credit card companies, overlap with each other, or in the case of banks operating credit card business due to large parts, it is not easy to divide their legal status into two parts.

(3) On the gains from the sale of the loan claim of this case

(A) Facts of recognition

○ Asset-backed Securitization of the Bank and the Bank

- CHB CHB UN 2004-1 Securitization Specialized Asset-backed Securitization Co., Ltd.(hereinafter referred to as "asset-backed company") is established in order to issue a set of asset circulation securities (ABS) based on loan claims to lower the ratio of non-performing loans and to lower the ratio of non-performing loans.

- Loan claims subject to current exchange (hereinafter referred to as "loan claims of this case"): 232,261,135,141 won

- Bad debts for bad debts established on the above loans: 97,441,609,766 won

- The current value appraised of the claim subject to sale as a result of the actual inspection and evaluation for the sale of assets: 1,60 billion won;

- Asset-backed Company: To acquire the instant loan claims at KRW 160 billion and issue assets-backed securities at KRW 160 billion;

- In the amount equivalent to KRW 90 billion in assets collateral: senior bonds (credit rating AA) taken over in full by a weekly securities company; payment to the R&A for such amount;

- Acceptance of the remainder of KRW 70 billion with subordinated bonds (credit rating CCC)

-Re&banks: Bad debts of 35 billion won (50%) out of subordinated bonds; and 16 billion won (10% of the issue amount of assets-backed securities in order to carry out the warranty liability of the transferor of assets; and

Accounting of ○ & a bank (defluence/defluence)

- Sale of loan claims of this case: Recovery of price and acceptance of order of priority;

○ Bad Debt Treatment and Liability for Warranty

[Ground of recognition] Facts without dispute, Gap 8 through 10 evidence (including each number), the purport of the whole pleadings (B)

Profit from sale and redemption of securities (=profit from sale and redemption - acquisition value), gain from sale and purchase of foreign currency, gain from disposal of fixed assets, etc., which constitute other profit from disposal and non-business profit, and thus, constitutes income subject to education tax.

(C) Judgment on the plaintiff's assertion

○ Claim: In full view of the following circumstances, it constitutes an internal profit as provided by Article 4(2)2 of the Enforcement Decree of the Education Tax Act, and the allowance for bad debts is in substance the same as the paid-in amount for bad debts.

- Internal Profits: Profits calculated not accompanied by cash but to make the settlement of accounts appropriate;

• The inquiry by the National Tax Service: the bad debt allowance appropriated for profits at the time of the settlement of accounts, regardless of foreign transactions, and the returned allowance for severance and retirement benefits.

- Securities appraisal profits are excluded from the education tax base (Article 4 of the Enforcement Decree of the Education Tax Act amended by Presidential Decree No. 18630, Dec. 31, 2004).

- Profits from sale or redemption of securities included in the education tax base: Provisions (Article 4(3) of the Enforcement Decree of the Act)

- Exclusion of depreciation claims from education tax base (Article 4(2)3 of the Enforcement Decree of the Act)

- In fact, loss of 27.3 billion won (income from sale of loan bonds 23,679,272,842 - bad debts allowances 35,00,000,000 - Other allowances for bad debts - Other allowances 16,00,000,000 won);

○ Judgment

The following circumstances (as a result of the fact-finding on the evidence No. 12, No. 12, No. 1, and the fact-finding on the Director of the Korean Accounting Standards, the purport of the whole pleadings) are rejected as it is without merit.

- It is an issue of interpretation because there is no definition of internal interests.

- The benefit from the sale of the loan of this case was generated in the course of external trade, such as the sale of the loan claims through asset-backed securitization

- The net profit calculated by deducting the net book value of loans from the total sale proceeds, as in the case of profit from the sale of securities and profit from redemption, shall be included in the tax base only in the net income calculated by deducting the net book value of loans (Cumulative book value of the beginning and the

- A security valuation profit is a non-realized profit and there is an explicit provision excluding it. A loan sale profit is a realization profit which is not a non-realized profit, and there is no express provision excluding it.

- The return of the bad debt allowance is due to the change in the total estimated amount of the bad debt allowance established as of the end of the current term, in which the bad debt allowance is returned, and the bad debt allowance established as of the end of the current term. The proceeds from the sale of the loan in this case are earnings recognized as being subject to the bad debt allowance established as being leaked in the company and transactions outside the company, and it is difficult to view the same as the return of the bad debt allowance.

- The tax base of education tax is the revenue amount of a financial or insurance business entity, and the tax amount shall be calculated by applying the direct tax rate (5/1,000), such as the output tax calculation under the Value-Added Tax Act, to profits, such as sales of financial institutions, regardless of whether the financial or insurance business entity actually earns profit, without deducting deductible expenses

- Bad debt disposal for the subordinate bonds of the R&A bank is not the bad debt disposal cost of the bank, but already treated as part of the cumulative bad debt allowance accumulated while recognizing the bad debt depreciation cost of the former as the bad debt depreciation cost, so it cannot be viewed as losses in the current period.

- Even if the transfer of other allowances has recognized the loss of the current accounting, it cannot be concluded that the transferor has actually suffered loss since it is still a property transferor's liability for warranty.

(4) Sub-determination: The instant disposition is lawful.

3. Conclusion

The plaintiff's claim is dismissed because there is no reason for the plaintiff's claim.