1. The plaintiff's appeal is dismissed.

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

Purport of claim and appeal

The first instance court.

1. Details of the disposition;

A. 1) On December 29, 2003, the Plaintiff donated 20,000 shares of the non-party company (hereinafter “the non-party company”) to C as an executive officer of the non-party company B (hereinafter “non-party company”) and 30,000 shares (hereinafter “the non-party company’s new shares”). 2) The non-party company offered capital increase on October 5, 2004 and November 5, 2004 and December 22, 2005 on December 23, 2005. At each of the above capital increase, the Plaintiff acquired 10,000 shares each with 10,000 shares per share at the face value of 5,00 won per share and acquired 30,000 shares (hereinafter “the new shares with consideration”).

3) On July 1, 2007, the non-party company divided its par value into five hundred won per share (However, in this case, the non-party company shall be stated as the number of shares before the division of shares for convenience.

(B) On January 25, 2008, the Busan Regional Tax Office listed on the KOSDAQ. B. The Busan Regional Tax Office conducted an integrated tax investigation with respect to the non-party company from August 10, 2009 to September 30, 2009, and determined that C at the time of the said donation constituted the largest shareholder, etc. under Article 41-3(1) of the former Inheritance Tax and Gift Tax Act (amended by Act No. 7010 of December 30, 2003), and imposed gift tax with respect to KRW 2,525,00,000 on the profits arising from the listing of stocks originally issued with the certificate of inheritance (the Plaintiff did not dispute whether the non-party company constitutes the largest shareholder, etc. of the non-party company) and paid the said gift tax to the Plaintiff.

(C) On January 25, 2010, the Board of Audit and Inspection issued a request to impose tax on KRW 3,944,200,000 on the benefits arising from the listing of the instant new shares with compensation after auditing the business of the Busan Regional Tax Office.

2) On July 5, 2010, the Defendant imposed a gift tax of KRW 2,113,605,780 (including additional tax of KRW 616,505,780) on the Plaintiff (hereinafter “instant disposition”) on the ground that the listed gains of KRW 3,944,200,00 are the value of donated property (hereinafter “instant disposition”).

2. Whether the instant disposition is lawful

A. The Plaintiff’s assertion 1 C does not fall under the largest shareholder, etc., and the Plaintiff’s assertion C.