The costs of appeal are assessed against the Plaintiff.

1. As to the grounds of appeal Nos. 1 and 2

A. Article 26(1) of the former Restriction of Special Taxation Act (amended by Act No. 6538, Dec. 29, 2001; hereinafter “former Special Taxation Act”) provides that when the Government deems it necessary for business adjustment, an amount of temporary investment equivalent to a certain amount of the investment prescribed by the Presidential Decree shall be deducted from income tax or corporate tax for the taxable year prescribed by the Presidential Decree. Article 23(1) of the former Enforcement Decree of the Restriction of Special Taxation Act (amended by the Presidential Decree No. 17458, Dec. 31, 2001) provides that “the amount of investment made by a national operating a specific business, such as the mining industry, refers to the amount of investment made to newly acquire facilities falling under the business property prescribed by the Ordinance of the Ministry of Finance and Economy.” Article 26(1) of the former Enforcement Decree of the Restriction of Special Taxation Act provides that the amount of temporary investment is deducted from corporate tax (hereinafter “temporary investment mutual aid business”) and Article 18(1) of the Enforcement Decree of the Restriction of the Special Taxation Act (hereinafter “Special Tax Act”).

In addition, Article 130 (1) of the former Adjustment Act provides that "the provisions of Article 26 shall not apply to fixed assets for business located in the Seoul Metropolitan Area where a national starts up a business in the Seoul Metropolitan Area after January 1, 1990 (including where an enterprise located in an area other than the Seoul Metropolitan Area establishes a new place of business in the Seoul Metropolitan Area)" (Article 26 shall not apply to fixed assets for business located in the Seoul Metropolitan Area), even if investing in the business assets of mutual aid business for temporary investment tax, the deduction shall be excluded in the case of start-up, etc