Interest and delay damages in excess of the limited interest rate specified in the Interest Limitation Act shall be other income.

Interest and delay damages in excess of the interest rate prescribed in the Interest Limitation Act shall be deemed to be other income as penalty and compensation received due to a breach or cancellation of a contract because the contract itself is null and void.

Article 16 of the Income Tax Act

Article 21 of the Income Tax Act

1.The judgment of the first instance shall be modified as follows:

A. The Defendant’s imposition disposition of global income tax of KRW 633,01,086 on December 9, 2003 against the Plaintiff on December 9, 2003, which exceeds KRW 234,466,306, shall be revoked.

B. The plaintiff's remaining claims are dismissed.

2. The costs of the lawsuit shall be four minutes, which shall be borne by the plaintiff, and the remainder by the defendant.

1. Purport of claim

The Defendant’s imposition of KRW 1,051,93,310 of global income tax for the year 1999 against the Plaintiff on December 9, 2003 and KRW 633,01,086 of global income tax for the year 2002 shall be revoked.

2. Purport of appeal

(3) The judgment of the first instance court against the Plaintiff is revoked. Each disposition taken by the Defendant against the Plaintiff on December 9, 2003 as global income tax of KRW 1,051,93,310 and the global income tax of KRW 309,524,644, out of the global income tax of KRW 1,051,93,310 and the global income tax of KRW 2002 shall be revoked.

(Defendant) The part against the Defendant in the judgment of the first instance is revoked, and the Plaintiff’s claim corresponding to the revocation portion is dismissed.

1. The grounds for the court’s explanation concerning the instant case are as follows: (a) the part, other than the conclusion, is modified as indicated in the annexed sheet; and (b) the reasoning for the first instance judgment is as stated in Article 8(2) of the Administrative Litigation Act and Article 420 of the Civil Procedure Act, except for the following modifications:

(a) Nine or less of the 20 pages of the first instance judgment shall be followed as follows:

Therefore, it can be viewed as taxable object of global income tax for the year 2002 as being subject to global income tax. The amount of 6 billion won distributed on November 22, 2002, which is 1.47 billion won, excluding the remainder of 930 million won, excluding the amount of principal 3.6 billion won among the amount of 6 billion won distributed on November 22, 2002, and the amount of 1.47 billion won, excluding the amount of 930 million won, which is determined as not attributable to the Plaintiff. Accordingly, the amount of global income subject to global income tax for the year 2002, shall be 30 million won, interest income received from ○○○ Development, and 1.47 billion won, and the amount of 1.47 billion won, as indicated below, shall be calculated based on this.

Global income amount;

Amount of legitimate interest and other income

1,770,000,000

Interest income amount already reported;

1,249,756,452 won

Amount of increase or decrease

520,243,548 won

Tax Base

520,243,548 won

Tax Rate

36%

calculated tax amount

187,287,677

Additional Tax

Impossibility of Report

36,952,722

Good Faith in Payment

10,225,907 won

Total

47,178,629 won

Total Amount of Tax

234,466,306 won

(b)Nos. 25, 19, 26, and 14, of the first instance judgment shall be followed by the following:

(D) Sub-determination

Therefore, interest income accrued in 1999 is KRW 670,000,000 for interest income accrued in 1999; KRW 3,095,257,350 for interest income accrued in 363,392,611,093,153 and KRW 120,71,814 for interest income accrued in 199; KRW 3,095,257,352 (=2,63,392,385 + + KRW 61,093,153 + KRW 120,71,814). Accordingly, the aggregate of the above interest income and other income is KRW 3,765,257,352 (=670,000 + KRW 3,095,257,352) for interest income and other income subject to global income tax accrued in 199.

However, according to the tax rate of 40%, if the amount of reasonable tax is calculated based on the rate of 1,506,102,940 won excluding additional tax (=3,765,257,352 X 40/100), the Defendant’s correction and notification to the Plaintiff for omission in reporting interest income accrued in 1999 shall exceed KRW 1,051,993,310. (On the other hand, the Defendant’s payment made while taking over the secured claim of 1.5 billion won from Kim ○○, is 83,300,000 won as stated in the agreement, and the Plaintiff’s assertion that the price is KRW 1.2 billion is 1.2 billion as above, but the amount of domestic income is 37,700,000,000 won, which exceeds the Plaintiff’s global income tax amount of KRW 1.37,90,000,000,000.)

Therefore, since 1,051, 993, and 310 won of global income tax imposed by the Defendant on the Plaintiff for the year 199 is imposed without considering specific penalty tax amount, it shall not be deemed unlawful as it is imposed within the reasonable tax amount.

(3) Sub-decisions

Ultimately, the global income tax that the Defendant imposed on the Plaintiff for the year 199 is imposed within the reasonable tax amount, and cannot be deemed unlawful. However, the global income tax for the year 2002 exceeds 234,466,306, which is a legitimate tax amount, and the excess portion should be revoked in an unlawful manner.

2. If so, the plaintiff's claim is justified within the above scope of recognition, and the remaining claims are dismissed as without merit, and the judgment of the court of first instance is unfair with some different conclusions, and it is so decided as per Disposition with the decision of the court of first instance as above.