The meaning of the real estate registration that is excluded from objects of taxation of the registration tax under the provisions of Article 138 (1) 3 of the Local Tax Act and Article 101 (1) 3 of the Enforcement Decree of the same Act.

The registration of real estate excluded from the subject-matter of heavy registration tax under Article 138 (1) 3 of the Local Tax Act and Article 101 (1) 3 of the Enforcement Decree of the same Act is limited to the case where a foreign-invested enterprise under the Foreign Capital Inducement Act carries on the manufacturing industry and registers the real estate acquired in order to use for the manufacturing industry. The acquisition and registration of real estate not used for the manufacturing industry, such as selling stores established for the product sales business produced by the enterprise, shall not be subject to heavy registration tax.

Article 138 (1) 3 of the Local Tax Act, Article 101 (1) 3 of the Enforcement Decree of the same Act

Dong Food Co., Ltd., Counsel for the defendant-appellant

The head of Incheon Metropolitan City Southern-gu

Seoul High Court Decision 87Gu769 delivered on October 6, 1987

The appeal is dismissed.

The costs of appeal are assessed against the plaintiff.

We examine the grounds of appeal.

The real estate registration which is excluded from the object of taxation of the registration tax under Article 138 (1) 3 of the Local Tax Act and Article 101 (1) 3 of the Enforcement Decree of the same Act is limited to the case where a foreign-invested enterprise under the Foreign Capital Inducement Act carries on the manufacturing business and registers the real estate acquired in order to use for the manufacturing business, and the real estate which is not used for the manufacturing business such as selling stores, etc. established in order to sell the products produced by the enterprise to consumers is not subject to heavy taxation of the registration tax.

In the above purport, the court below is just in holding that the plaintiff company is a foreign-capital invested company under the Foreign Capital Inducement Act and engaged in food manufacturing and selling business, but as long as the plaintiff company acquired the site and building for the direct sale of the product, and uses it for the purpose of sale, the real estate registration on the site and building is not subject to the heavy registration tax, and there is no error in the misapprehension of legal principles, such as theory

Therefore, the appeal is dismissed, and the costs of the lawsuit are assessed against the losing party. It is so decided as per Disposition by the assent of all participating Justices.

Justices Song Man-Ba (Presiding Justice)