All appeals are dismissed.

The costs of appeal are assessed against the Defendants.

The grounds of appeal are examined.

1. Regarding ground of appeal No. 1

A. (1) Article 41-5(1) of the former Inheritance Tax and Gift Tax Act (amended by Act No. 11130, Dec. 31, 201; hereinafter “Inheritance Tax Act”) provides that “Where a person with a special relationship with the largest shareholder, etc. has received stocks, etc. of the relevant corporation from the largest shareholder, etc. or has acquired stocks, etc. of another corporation with donated assets, etc. or received stocks, etc. of the relevant corporation from a person who is not the largest shareholder, etc., with the donated assets, the value of the relevant stocks, etc. has increased as a result of the merger with the relevant corporation or the stock-listed corporation having a special relationship with the relevant corporation within five years from the date of donation or acquisition, where the person who received stocks, etc., or acquired with compensation, has acquired profits above the standard prescribed by Presidential Decree in excess of the original taxable value or acquisition value of the relevant stocks, the amount equivalent to such profits shall be deemed the value of donated assets to the person who has acquired such profits.”

Meanwhile, Article 41-3 (1) of the Inheritance and Gift Tax Act provides that where a person in a special relationship with the largest shareholder, etc. has received 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 value of the relevant corporation has increased as the stocks, etc. are listed on the securities market within five years from the date of acquisition, and where the person who received stocks, etc. donated or acquired for compensation has acquired a certain profit in excess of the original taxable value or acquisition value