Seoul Administrative Court 2007Guhap42690 ( July 23, 2008)

Where stocks are acquired without compensation, unlike a sales contract, it shall constitute a donation.

It is appropriate to constitute a gift in the case of gratuitous transfer of shares, and the argument that the economic effect, such as the capitalization of the amount to be issued after issuance of shares, is merely a mere fact of the fulfillment of the suspension condition after issuance of shares due to a special circumstance or oral agreement on the side of a transaction, cannot be recognized as a consideration for the gift, and it is viewed as a gift in

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

Article 2 of the Inheritance Tax and Gift Tax Act

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 defendant shall revoke the disposition of imposition of gift tax of KRW 734,721,730 against the plaintiff on February 12, 2007.

The court's explanation on this case is identical to the entry of the reasoning of the judgment of the court of first instance. Thus, it is citing this as it is in accordance with Article 8 (2) of the Administrative Litigation Act and Article 420 of the Civil Procedure

Therefore, the judgment of the court of first instance is justifiable, and the plaintiff's appeal is dismissed. It is so decided as per Disposition.