The appeal is dismissed.

The costs of appeal are assessed against the defendant.

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

1. Article 2(1) of the former Enforcement Decree of the Restriction of Special Taxation Act (amended by Presidential Decree No. 20620, Feb. 9, 2006; hereinafter “former Enforcement Decree of the Restriction of Special Taxation Act”) provides for special taxation for small and medium enterprises under Chapter II Section 1, etc. (hereinafter “special taxation for small and medium enterprises”). Article 2(1) of the former Enforcement Decree of the Restriction of Special Taxation Act (amended by Presidential Decree No. 19329, Feb. 22, 2008; hereinafter “former Enforcement Decree of the Restriction of Special Taxation Act”) that provides for the requirements for the type, size, and independence of small and medium enterprises subject to such special taxation (hereinafter “special taxation for small and medium enterprises”).

Meanwhile, Article 2(5) of the former Enforcement Decree of the Restriction of Special Taxation Act (amended by Presidential Decree No. 19329, Feb. 9, 2006; hereinafter “former Enforcement Decree of the Specialized Act”) provides that “Where a company does not fall under a small or medium enterprise due to the amendment of the Enforcement Decree of the Framework Act on Small and Medium Enterprises, the taxable year to which the date on which the cause occurred belongs and the taxable year following the third taxable year shall be deemed to be a small or medium enterprise” is amended to Article 2(5) of the Enforcement Decree of the Special Act on the Specialized Act, the [Attachment] portion was changed to [Attachment Table 1].

Meanwhile, Article 3 subparag. 2 [Attachment 2] of the former Enforcement Decree of the Framework Act on Small and Medium Enterprises (amended by Presidential Decree No. 19189, Dec. 27, 2005; Presidential Decree No. 21368, Mar. 25, 2009; hereinafter “former Enforcement Decree of the Framework Act on Small and Medium Enterprises”) owns not less than 30/10 of the total number of issued and outstanding shares as one of the standards for actual independence of ownership and management of small and medium enterprises.