The appeal is dismissed.

The costs of appeal are assessed against the Plaintiff.

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

1. Case summary

A. The Plaintiff is a domestic corporation that operates the salt and the scarcity manufacturing business, and C (hereinafter “C”) established D (hereinafter “D”) in Indonesia around March 1990 as a domestic corporation in a special relationship with the Plaintiff.

나. D은 종래 요소 공법(이하 ‘구기술 공정’이라고 한다)을 이용하여 발포제의 원료 물질을 생산하다가, 2002. 9. 2. 원고와 사이에 원고가 개발한 뷰렛 공법(이하 ‘신기술 공정’이라고 한다)에 관한 기술사용계약(이하 ‘이 사건 계약’이라고 한다)을 체결하였다.

According to the instant contract, the Plaintiff grants D the right to use, revise, and improve a new technology process and related patent, and D, for 12 years after the conclusion of the instant contract, shall pay the Plaintiff the fixed technology fee of US$ 300,000 ( US$ 400,000 in the year the instant contract was concluded) and the royalty of learning royalty equivalent to 2% of the annual sales of each quarter.

C. D around September 2, 2002, pursuant to the instant contract, paid the Plaintiff a fixed technical fee of USD 400,000,00, and manufactured the product that applied the new technology process from September 23, 2003, but thereafter, did not pay the fixed technical fee and the mining royalty as stipulated in the instant contract.

The Defendant considers the Plaintiff’s fixed technical fees and mining royalty (hereinafter “instant royalties”) incurred from 2009 to 2013 as the waiver of the claim against the instant technology royalties (hereinafter “instant claim”) by regarding that the Plaintiff did not recover from D, a foreign related party, as the waiver of the instant technology royalties, and accordingly, the former Corporate Tax Act (amended by Act No. 16008, Dec. 24, 2018; hereinafter the same shall apply) on December 1, 2014.