The judgment below is reversed and the case is remanded to Seoul High Court.

The grounds of appeal are examined.

1. According to Article 80(1)1 of the former Building Act (amended by Act No. 13471, Aug. 11, 2015), where a building is constructed without obtaining permission or filing a report, a non-performance penalty shall be imposed with the amount not exceeding the amount calculated by multiplying the amount equivalent to 50/100 of the standard market value of one square meter applicable to the building pursuant to the Local Tax Act by the size of the non-compliant area.

In such cases, "standard market price" means the price determined by the head of a local government in accordance with "standards prescribed by Presidential Decree" in consideration of the characteristics of each taxable object, such as the type, structure, purpose of use, and the number of years elapsed, based on the transaction price, import price, and building construction price, etc. (Article 4 (2) of the Local Tax Act). In such cases, "standards prescribed by Presidential Decree" means the standards determined by the Minister of the Interior by applying the increase or decrease rate determined by applying the standard price for new construction of a building calculated and publicly announced pursuant to Article 9 (1) 1 (b) of the Income Tax Act to the standard price for new construction of a building by structure, use, location,

(1) Article 4(1)1 of the Enforcement Decree of the Local Tax Act. Article 4(1)1 of the standard market price of buildings and other articles in 2012, which was enacted upon delegation of the said Act, is the standard for the adjustment of the standard market price of buildings and other articles in 2012 and the “standard for the adjustment of the standard market price of buildings and other articles in 2013” (hereinafter “instant adjustment standard”), and the standard market price is to be determined through the formula of “the standard amount of the new construction price of buildings x the applicable index (location of structural use) 】 the applicable index x the area x the special exception for increase or decrease x the standard market price of the reconstruction building.” As to the standard market price of the reconstruction building, “in cases of all or part of the existing building and re-construction (hereinafter “deconstruction”),