1. Revocation of the first instance judgment.

2. The Defendant’s gift tax amounting to KRW 1,172,66,92, which was paid to the Plaintiff on January 2, 2015, is subject to KRW 1,172,66,92.

1. The reasoning of the judgment of the court, such as accepting the judgment of the court of first instance, is as stated in the reasoning of the judgment of the court of first instance (excluding the part of the judgment of the court of first instance) (excluding the part of the judgment of the court of first instance), except for the modification of the 4.9 to 11.8 of the judgment of the court of first instance as stated in the following 2. Thus, it is acceptable in accordance with Article

2. Article 30-6(1) of the former Restriction of Special Taxation Act on the amended portion provides that “Where a resident aged 18 or older takes the donation of stocks or equity shares for the purpose of succeeding to the family business from a parent aged 60 or older who has engaged in the family business under Article 18(2)1 of the Inheritance Tax and Gift Tax Act for at least ten consecutive years and succeeds to the family business as prescribed by Presidential Decree on or before December 31, 2013, the gift tax shall be levied at the tax rate of 10/100 after deducting KRW 500 million from the taxable value of donated property, notwithstanding Articles 53 and 56 of the Inheritance Tax and Gift Tax Act.

Meanwhile, Article 18(2)1 of the former Inheritance Tax and Gift Tax Act (amended by Act No. 12168, Jan. 1, 2014; hereinafter “Gift”) defines “family business” as “a small or medium enterprise prescribed by Presidential Decree and continuously operated by an ancestor for at least ten years.” Article 15(1) of the former Enforcement Decree of the Inheritance Tax and Gift Tax Act (amended by Presidential Decree No. 25195, Feb. 21, 2014; hereinafter “Enforcement Decree of the Inheritance Tax and Gift Tax Act”) defines “small or medium enterprise prescribed by Presidential Decree” as “small or medium enterprise under Article 5(1) of the Restriction of Special Taxation Act as of the end of the taxable year immediately preceding the taxable year in which the commencement date of inheritance falls.”

Furthermore, according to Article 5(1) of the former Restriction of Special Taxation Act and Article 2(1) of the former Enforcement Decree of the Restriction of Special Taxation Act (amended by Presidential Decree No. 25211, Feb. 21, 2014), Article 5(1) of the Restriction of Special Taxation Act is prescribed by Presidential Decree.