2. The costs of lawsuit are assessed against the plaintiffs.

A. F purchased 2,314 square meters in Gangseo-gu Busan Metropolitan City G (hereinafter “instant previous land”) in KRW 280,000,000 and completed the registration of ownership transfer on November 9, 2006. The said land was expropriated in KRW 498,00,000, and the ownership transfer registration was completed on October 11, 2013 by the Korea Water Resources Corporation.

F has purchased the purchase price of KRW 158,90,000 (hereinafter “instant land”) from Gangseo-gu Busan Metropolitan Government as a substitute land for the said expropriated land in KRW 158,90,000 and completed the registration of transfer on October 25, 2013.

B. F, with knowledge that it constitutes the scope of application of special cases of capital gains tax reduction or exemption for the previous land in this case, upon request to Defendant C, a licensed real estate agent, for the brokerage of sale of the instant land, around August 2015, concluded a sales contract with I on October 26, 2015 and completed the registration of ownership transfer on October 29, 2015.

C. As to the transfer income tax on substitute farmland stipulated in Article 70 of the Restriction of Special Taxation Act, as in attached Table 1, Article 67 of the Enforcement Decree, which stipulates that if substitute farmland is cultivated for more than three years, the amount of tax shall be reduced or exempted by adding the period of cultivation to the previous land and substitute farmland for not less than eight years, as amended by Presidential Decree No. 25211, Feb. 21, 2014. The Addenda of the Enforcement Decree provides that the amended provisions of Articles 1 and 9 shall enter into force from July 1, 2014; however, the provision on reduction or exemption (proviso to the part other than each item of Article 67(3)1) shall apply to cases where substitute farmland is acquired before this Decree enters into force before this Decree and the previous land is transferred after its enforcement or acquired after the substitute land is transferred after its enforcement.

According to the facts acknowledged above, F has acquired the instant previous land before July 1, 2014, which was the enforcement date of the amended provisions of the above Enforcement Decree, and thus, F has to cultivate the substitute farmland for at least three years, since it acquired the instant land, which is the substitute farmland.