The appeal is dismissed.

The costs of appeal are assessed against the defendant.

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

1.Article 7 subparagraph 1 of the Agreement between the Republic of Korea and the Federal Republic of Germany for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and on Capital (hereinafter referred to as the “Korea- Germany Tax Treaty”) provides that “for a business profit of an enterprise of a Contracting State, only in that other Contracting State shall be taxed on the business profit unless the enterprise performs its business in the other Contracting State through a permanent establishment located in the other Contracting State. Where the enterprise carries out its business as shown in its former part, only those portion of its profits which may accrue to that permanent establishment may be taxed on the other Contracting State.” Article 12 provides that “The royalty paid to a resident of the other Contracting State may be taxed in that other Contracting State as to the royalty income” in subparagraph 2 provides that “However, if the recipient is a beneficial owner of the royalty, taxes imposed as such shall not exceed 10 percent of the total amount of the royalty, trademark rights or the right to use the scientific or scientific film, film or digital material of the kind, broadcast or any other scientific material of the other Contracting State.”