C&A Co., Ltd. (Law Firm Squa, Attorneys Park Jae-sik et al., Counsel for the plaintiff-appellant)

The head of Yeongdeungpo-gu

September 9, 2016

Seoul Administrative Court Decision 2015Guhap70140 decided January 28, 2016

1. The plaintiff's appeal is dismissed.

2. The costs of appeal shall be borne by the Plaintiff.

The judgment of the first instance shall be revoked. The imposition of acquisition tax on the Plaintiff on May 18, 2015 by the Defendant and special rural development tax of KRW 1,626,623,100 and KRW 162,662,30 (including additional tax) shall be revoked.

1. Quotation of the reasons for the judgment of the first instance;

This judgment is based on the reasoning of the judgment of the court of first instance, except for the addition of the following matters among the reasons for the judgment of the court of first instance, and thus, it is based on Article 8(2) of the Administrative Litigation Act and the main sentence of Article 420 of

○ The following shall be added to the 5th page 18:

Article 8-2(1)3 of the Monopoly Regulation and Fair Trade Act (amended by Act No. 6043, Dec. 28, 1999) provides that a holding company shall not hold stocks of a domestic company other than a subsidiary for control purposes prescribed by the Presidential Decree. Where a company is converted into a holding company by investing in kind all or part of its assets in another company, it has an exception to holding companies for two years from the date of conversion into a holding company only when it owns stocks of another domestic company at the time of its conversion into a holding company. The purport of such provision of the Fair Trade Act seems to have been to prevent the harmful effects of economic concentration that may arise as a result of permitting the establishment of a holding company while amending the Act so that it can be established at the Fair Trade Commission. Therefore, in light of the above provision of the Fair Trade Act at the time of the establishment of the new holding company, it is difficult to view the existing provision of the Fair Trade Act to apply to the case where a holding company newly incorporated as a holding company.

2. Conclusion

Therefore, the plaintiff's claim shall be dismissed as it is without merit, and the judgment of the court of first instance shall be just and the plaintiff's appeal shall be dismissed as it is without merit. It is so decided as per Disposition.

Judges Kim Woo (Presiding Judge)