The appeal is dismissed.

The costs of appeal are assessed against the Plaintiff.

The grounds of appeal are examined.

1. In full view of the provisions of Article 45(1) main text and Article 45(3) main text of the Value-Added Tax Act, Article 87(1) of the Enforcement Decree of the Act, and Article 19-2(1)5 of the Enforcement Decree of the Corporate Tax Act, “a claim confirmed to be impossible to be recovered due to a decision to grant authorization for the rehabilitation plan or a court’s immunity pursuant to the Debtor Rehabilitation and Bankruptcy Act” is subject to a bad debt tax amount from the output tax amount and input tax

Meanwhile, according to Articles 205(1), 206(1), and 264(1) and (2) of the Debtor Rehabilitation Act, when authorizing a rehabilitation plan, the court may issue new shares without requiring rehabilitation creditors to make new payments, etc., and when capital is reduced according to the rehabilitation plan, the provisions on the retirement of shares and the reduction of capital under the Commercial Act do not apply.

In the end, if the rehabilitation plan is to substitute for the repayment of existing rehabilitation claims, etc. through a conversion of shares through a conversion of shares without requiring payment, but if shares issued through a conversion of shares are decided to be retired without compensation, the shares newly issued according to the validity of the approved rehabilitation plan are not likely to be exercised as shareholders and it is clear that they will be retired without any other consideration.

Thus, it is reasonable to view that rehabilitation claims, etc., which are the premise of debt-equity swap, have become final and conclusive as irrecoverable according to the rehabilitation plan decision.

(2) On June 28, 2018, the lower court: (a) the Plaintiff filed an application for commencing rehabilitation proceedings with the Seoul Central District Court 2013hap66, Apr. 4, 2013; and (b) the said court made cash reimbursement among the rehabilitation claims against the Plaintiff of South Korea on December 27, 2013, as follows: (a) the Plaintiff filed an application for commencing rehabilitation proceedings with the Seoul Central District Court 2013hap66, Apr. 16, 2013; and (b) the said court made payment on December 27, 2013.