The judgment below

The part against the Defendant is reversed, and that part of the case is remanded to the Seoul High Court.

The grounds of appeal are examined.

1. Article 48 of the former Inheritance Tax and Gift Tax Act (amended by Act No. 10411, Dec. 27, 2010; hereinafter “Gift”) provides that the value of property contributed by a public-service corporation, etc. shall not be included in the taxable value of donated property. In the main text of Article 48(1)1 of the former Inheritance Tax and Gift Tax Act, where the property contributed by the public-service corporation, etc. is not used directly for public-service business, etc. or directly for public-service business within three years from the date on which it was used or contributed, the value prescribed by Presidential Decree shall be deemed donated by the

In addition, Article 40(1)1(b) of the Enforcement Decree of the Inheritance Tax and Gift Tax Act provides that the value deemed as a donation pursuant to the delegation of Article 48(2) of the Inheritance Tax and Gift Tax Act shall be “value of property which is not used for a direct public project, etc. or used insufficiently.”

Article 48 (1) of the Inheritance and Gift Tax Act does not include property contributed to a public-service corporation, etc. in the taxable value of the gift tax on condition that the property should be used for the purpose of contribution by the public-service corporation, etc.

In addition, Article 48(2) of the Inheritance Tax and Gift Tax Act provides that gift tax shall be imposed when certain grounds prescribed in each of the following subparagraphs arise for post management. The subject of gift tax is not the property originally received by the public interest corporation, etc., but the subject of taxation of gift tax is defined as "value prescribed by Presidential Decree, which is deemed as gift" when the grounds prescribed in each of the subparagraphs arise

In full view of the language, structure, and purpose of these regulations, the standard of appraisal of the value of donated property in applying the main text of Article 48(2)1 of the Inheritance and Gift Tax Act.