The appeal is dismissed.

The costs of appeal are assessed against the defendant.

The grounds of appeal are examined.

1. Article 93 Subparag. 11(b) of the former Corporate Tax Act (amended by Act No. 10423, Dec. 30, 2010; hereinafter the same) provides that one of the domestic source income of a foreign corporation refers to “income prescribed by Presidential Decree as penalty or compensation paid in the Republic of Korea” as one of the domestic source income of the foreign corporation. Article 132(10) of the former Enforcement Decree of the Corporate Tax Act (amended by Presidential Decree No. 22577, Dec. 30, 2010; hereinafter the same) provides that “The amount of compensation for breach or termination of a contract on property rights, which is paid by breach of a contract on property rights, is the value of money or other goods paid or received in excess of the damages per se to the payment under the original

2. On the grounds indicated in its reasoning, the lower court determined that each of the instant dispositions based on the different premise was unlawful on the ground that the instant agreement was merely merely compensation for losses caused by the Plaintiff’s cause attributable to the Plaintiff or compensation for restitution level, and that it cannot be deemed that it constitutes “money received in excess of compensation for payment itself under the previous contract” under Article 132(10) of the former Enforcement Decree of the Corporate Tax Act by delegation under Article 93 subparag. 11(b) of the former Corporate Tax Act.

3. Examining the records in accordance with the foregoing provision and related legal principles, the lower court’s aforementioned determination is justifiable.

In so doing, there were no errors by misapprehending the legal principles on the scope of domestic source income under Article 93 subparag. 11 (b) of the former Corporate Tax Act.

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