The costs of appeal are assessed against the plaintiffs.

1. As to the principal tax

A. Article 39(1)1 of the former Inheritance Tax and Gift Tax Act (amended by Act No. 8828, Dec. 31, 2007; hereinafter “Gift”) provides that in case where a corporation issues new stocks at a price lower than the market price (referring to the price assessed pursuant to Articles 60 and 63) in order to increase its capital, the amount equivalent to one of the following profits shall be deemed as the value of donated property to the person who has acquired such profits, and that item (c) provides that “the profits acquired by a person other than the shareholder of the relevant corporation by directly obtaining the new stocks from the relevant corporation.”

In addition, Article 29 (3) 1 of the former Enforcement Decree of the Inheritance Tax and Gift Tax Act (amended by Presidential Decree No. 23591, Feb. 2, 2012; hereinafter “Enforcement Decree of the Inheritance Tax and Gift Tax Act”) which provides for the calculation of the above donated interest pursuant to delegation under Article 39 (3) of the Inheritance Tax and Gift Tax Act (amended by Presidential Decree No. 23591, Feb. 2, 2012) provides that in principle, Article 29 (3) 1 of the Enforcement Decree of the Inheritance Tax and Gift Tax Act provides that "(a) [the main sentence of item (a)] of the value per share calculated by multiplying the value calculated by the formula of "(i) the appraised value per share before capital increase 】 (i) the total number of outstanding stocks issued before capital increase 】 the number of outstanding stocks issued before capital increase 】 (ii) the number of shares

However, the proviso of Article 29(3)1 (a) of the Enforcement Decree of the Inheritance and Gift Tax Act provides that, in the case of a stock-listed corporation, etc., the value per share after the increase is less than the value per share calculated by the formula under the main sentence of subparagraph (a) above, the gift profits shall be calculated on the basis of the appraised value. In light of the principle of market value under the Inheritance and Gift Tax Act, the value per share after the increase of the "value" as referred to in this context shall be the market value.