Method of deemed donation following the cultivation of forfeited stocks;

As the existing shareholders renounce their preemptive rights, they should calculate the value deemed donated by deeming the difference between the actual value and the value of the value of the forfeited shares to be donated.

The contents of the decision shall be the same as attached.

Seoul Administrative Court Decision 99Gu16060 delivered on November 5, 1999

1. All appeals by the plaintiffs are dismissed.2. The costs of appeal are assessed against the plaintiffs.

1. Quotation of the lower judgment

The reasoning of the judgment of the court concerning the instant case is that of the judgment below, except for the following additional statements, and therefore, it is consistent with Article 8(2) of the Administrative Litigation Act and Article 390 of the Civil Procedure Act.

2. Additional determination

A. According to Article 34-5 (1) of the former Inheritance and Gift Tax Act (amended by Act No. 5193, Dec. 30, 196; hereinafter referred to as the "Act"), it is clear that the Plaintiffs are deemed to have donated shares under the premise of the transfer of interests among shareholders in light of the provisions of Article 34-5 (1) of the same Act. Thus, in the case of calculating the value of shares per share after the issuance of new shares under Article 41-4 (1) of the Enforcement Decree of the same Act (amended by Presidential Decree No. 15193, Dec. 31, 1996; hereinafter referred to as the "Decree"), the Plaintiffs cannot be deemed to have violated the provisions of Article 5 (6) 1 (b) of the Enforcement Decree of the Inheritance and Gift Tax Act and Article 41-4 (1) of the Enforcement Decree of the same Act so that the value of the new shares per share can be calculated by applying the same formula as the value of shares issued without taxation without taxation.

Therefore, the plaintiffs' claim of this case shall be dismissed in its entirety as it is without merit, and the judgment of the court below is just and there is no ground to dismiss the plaintiffs' appeal. It is so decided as per Disposition.