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

A. The Plaintiff has LGEHN and eight other corporations in the People’s Republic of China as its subsidiaries (hereinafter “instant subsidiaries”).

B. The instant subsidiaries, around 2014, paid to the Plaintiff totaling KRW 98,544,215,362 of the dividends with earned surplus as the source of revenue, withheld KRW 2,989,648,141, calculated by applying the limited tax rate of 5% pursuant to Article 10(2)(a) of the Agreement between the Government of the Republic of Korea and the Government of the People’s Republic of China for the Avoidance of Double Taxation and the Prevention of Tax Evasion with respect to Taxes on Income (hereinafter “Korea-China Tax Treaty”), and paid to the Chinese tax authorities.

C. On March 30, 2015, the Plaintiff filed a return on the tax base and amount of corporate tax for the business year 2014 (from January 1, 2014 to December 31, 2014) with the tax rate of KRW 10% on the dividends under Article 5(1) of the Protocol B between the Republic of Korea and the People’s Republic of China for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to the Taxes on Income, which is deemed as the amount of tax paid overseas, and the amount of tax deemed as the amount of tax paid overseas for the business year 2014 (from January 1, 2014 to December 31, 2014).

The Defendant, on August 7, 2017, as the Chinese Corporate Income Tax Act was amended on January 1, 2008, determined the tax base and tax amount of corporate tax for the 2014 business year by excluding KRW 88,215,397,236, out of the dividends received from the instant subsidiaries, which the Plaintiff imposed at a limited tax rate of 5% as stipulated in the Korea-China Tax Treaty, referring to surplus earnings accrued after January 1, 2008, from which the Plaintiff received from the instant subsidiaries in the business year 2014, on the grounds that the amount of foreign corporate tax is not subject to foreign corporate tax deduction. The Plaintiff’s corporate tax base and tax amount for the 2,989,648,141 (hereinafter “foreign tax amount deemed to be foreign tax amount”) deemed to be paid for the 2014 business year, and the amount of corporate tax for the 2014 business year was calculated as “0 won due to the deduction of the amount of corporate tax for the previous business year.”