The judgment below is reversed and the case is remanded to Seoul High Court.

The grounds of appeal are examined (to the extent of supplement in case of supplemental appellate briefs not timely filed).

1. Article 41-3 of the former Inheritance Tax and Gift Tax Act (amended by Act No. 11130, Dec. 31, 2011; hereinafter “the Act”) provides that “where a person having a special relationship with the largest shareholder, etc. has received a donation of stocks, etc. of the relevant corporation from the largest shareholder, etc. or has acquired them with compensation, the date of donation or acquisition, and where the stocks, etc. of the relevant corporation have been acquired from a person other than the largest shareholder, etc. with donated property, etc., as the stocks, etc. were listed on the securities market within five years from the date of acquisition, where the value increases as the person who received a donation or received a compensation for stocks, etc.

In addition, paragraph (6) provides that "in applying paragraph (1), the acquisition of stocks, etc. shall include new stocks acquired or allocated by a corporation through the issuance of new stocks to increase its capital."

As such, Article 41-3(1) of the Act applies to cases where a person with a special relationship receives a donation from the largest shareholder, etc., or acquires the stocks as donated or donated to the largest shareholder, etc., and Article 41-3(1) of the Act provides that paragraph (6) shall apply to new stocks issued by the corporation

In light of the contents and purport of the above provisions and the language and structure thereof, the “new stocks” under Article 41-3(6) of the Act does not include new stocks that were donated or acquired with compensation from the largest shareholder, etc., and are not included in new stocks that were acquired or allocated regardless of the donated property.