Whether it constitutes the allocation of new shares by means of public offering of new shares

It should be interpreted that the allotment by the method of public offering of new securities under Article 2-4 (1) of the former Enforcement Decree of the Securities and Exchange Act is limited to a general public offering where the number of persons who are solicited to acquire the securities to be newly issued is not less than 50.

Article 39 (Donation of Profits from Capital Increase)

Article 2 (Definitions of Securities and Exchange Act)

1. The plaintiff's claim is dismissed.

2. The costs of lawsuit shall be borne by the Plaintiff.

The Defendant’s disposition of imposition of gift tax of KRW 14,313,370 against the Plaintiff on June 15, 2007 is revoked.

1. Circumstances of the imposition disposition;

The following facts shall not be disputed between the parties, or may be recognized by taking into account the whole purport of the pleadings in each entry in Gap evidence of subparagraphs 1 through 7 and Eul evidence of subparagraphs 1 through 7 (including each number):

A. On May 16, 1990, 190, ○○ Lebz Co., Ltd. (hereinafter referred to as ○○○○ Industries Co., Ltd.) was registered with the KOSDAQ on February 17, 2004.

B. On January 9, 2006, the non-party company held a board of directors and passed a resolution to issue new shares (registered common shares) to five specific persons with a major shareholder from the beginning, including the plaintiff, at the price of 2,680 won per share, and at the same time on January 12, 2006, to issue new shares in a third party allotment method. The non-party company received the share price by allocating new shares to the above 5th on January 12, 2006 (hereinafter "the allocation of new shares in this case").

An offerer;

Number of allocated shares;

Issue Price

Payments

Jinay

For chi-○

89,549 Shares

2,680 won

239,991,320 won

January 13, 2006

Ma-hee

179,104 Shares

2,680 won

479,998,720 won

“”

○ Kim Ho-hoon

182,835 Shares

2,680 won

489,997,800 won

“”

○○ Kim

11,567 Shares

2,680 won

298,99,560 won

“”

Heading ○ (Plaintiff)

182,835 Shares

2,680 won

489,997,800 won

“”

Total

745,890 Shares

2,680 won

1,998,985,200 won

C. The Defendant deemed to have acquired new shares at a price lower than the market price and applied Article 29(1)1(c), etc. of the Inheritance Tax and Gift Tax Act (amended by Act No. 8828, Dec. 31, 2007; hereinafter “former Act”). On June 15, 2007, the Defendant imposed 14,313,370 won of gift tax on KRW 104,03,115 (the amount calculated by multiplying the appraised value per share after capital increase by KRW 3,249, the difference between KRW 2,680, and KRW 182,835, the Plaintiff’s acquisition value per share by KRW 569 (hereinafter “instant disposition”).

D. On August 31, 2007, the Plaintiff was dissatisfied with the instant disposition and filed an appeal with the National Tax Tribunal on August 31, 2007, but was dismissed on December 18, 2007.

2. Whether the instant disposition is lawful

A. The plaintiff's assertion

Article 39 (1) 1 (a) and (c) of the former Act provides that where a person who is not a shareholder of the relevant corporation directly receives a allocation of new stocks from the relevant corporation at a price lower than the market price, gift tax shall be imposed by deeming the amount equivalent to the relevant profits as the value of the property donated to the person who acquired such profits. In the event that a stock-listed corporation or Association-registered corporation issues and allocates new stocks through a public offering method of securities under Article 2 (3) of the Securities and Exchange Act, it shall be excluded from the subject of gift tax. Although the number of persons who received a solicitation for subscription does not reach 50 persons, the allocation of new stocks constitutes a company with possibility of resale of new stocks pursuant to Article 12 of the Regulations on Issuance and Public Disclosure of Securities and Exchange (wholly amended by Presidential Decree No. 20551, Jan. 18, 2008; hereinafter referred to as the "former Enforcement Decree of the Securities and Exchange Act"), it shall be excluded from the subject of gift tax.

(b) Related statutes;

Article 39 (Donation of Profits from Capital Increase)

Article 2 (Definitions of Securities and Exchange Act)

C. Determination

1) 구법 제39조 제1항 제1호 가목 및 다목은, 법인이 자본을 증가시키기 위하여 신주를 시가보다 낮은 가액으로 발행하는 경우 당해 법인의 주주가 아닌 자가 당해 법인으로부터 신주를 직접 배정받음으로ㅆ 이익을 얻은 경우에 당해 이익에 상당하는 금액을 그 이익을 얻은자의 증여재산가액으로 하여 증여세를 부과하도록 규정하면서, 다만 증권거래법에 의한 주권상장법인 또는 협회등록법인이 증권거래법 제2조 제3항의 규정에 의한 유가증권의 모집방법으로 신주를 배정하는 경우에는 이를 제외하도록 규정하고 있고, 증권거래법 제2조 제3항은 '이 법에서"유가증권의 모집"이라 함은 대통령령이 정하는 바에 따라 신규로 발행되는 유가증권의 취득의 청약을 권유함을 말한다'고 규정하고, 구 증권거래법 시행령 제2조의 4 제1항은'법 제2조 제3항의 규정에 의한 유가증권의 모집을 함에 있어서는 신규로 발행되는 유가증권의 취득의 청약을 권유받는 자의 수가 50인 이상이어야 한다.',제5항은 '제3항에서 "청약의 권유"라 함은 권유받는 자에게 유자증권을 취득하도록 하기 위하여 신문· 방송· 잡지 등을 통한 광고, 안내문· 홍보전단 등 인쇄물의배포, 투자설명회의 개최, 전자통신 등의 방법으로 유가증권을 발행 또는 매도한다는 사실을 알리거나 취득의 절차를 안내하는 활동을 말한다'고 규정하고 있다.

Meanwhile, Article 2-4 (4) of the former Enforcement Decree of the Securities and Exchange Act provides that even if the number of persons who are solicited to subscribe is less than 50 and does not constitute a public offering of new securities, the securities can be transferred to not less than 50 persons within one year from the date of issuance, and if the securities meet the standards for resale prescribed by the Financial Supervisory Commission, they shall be deemed a public offering of new securities.

2)구법 제39조 제1항 제1호 가목 및 다목은 법인이 자본을 증가시키기 위하여 신주를 시가보다 낮은 가액으로 발행하는 경우에 이를 배정받은 자는 시가와 차액 상당의 이득을 얻는 것이고, 그 이득 상당금액을 증여재산가액에 포함시킴으로ㅆ 증여세를 부과하도록 하는 한편, 증권거래법에 따른 유가증권 모집 방법에 의한 신주배정의 경우에는 이를 제외하도록 함으로써, 할인발행으로 인하여 그 이득을 취하는 자가 있더라도 공모의 경우에는 증여세 부과를 면제하도록 하고 있는바, 이는 주권상장법인 또는 협회등록법인이 증권거래법 등 관계법령에 \ue3e5라 공모절차에 의하여 신주를 발행하는 경우에는 할인발행을 하더라도 불특정 다수인 간에 한국증권거래소 또는 협회중개시장 내에서 공정한 경쟁매매과정을 거쳐 다시 적정한 가액이 결정되는 것이고, 일반인 및 제3자의 투자보호를 위하여 정당한 방법으로 공시, 홍보 등을 취하게 된다는 점과 또 일정한 한도 내에서의 할인발행은 증권거래법 등 관계법령이 상장법인 또는 협회등록 법인의 자금조달을 용이하게 하기 위하여 허용하는 것인 점 등을 고려하여 이러한 경우는 주식의 발행가액이 비록 시가보다 낮게 결정된다 하더라도 주권상장법인 또는 협회등록법인이 그 차액 상당을 주식을 배정받는 제3자에게 증여한 것이라고 보기 어려워 증여세의 과세대상에서 이를 제외하려는 취지라고 봄이 상당하다.

(3)On the other hand, Article 2-4 (4) of the former Enforcement Decree of the Securities and Exchange Act (amended by Presidential Decree No. 2204, Feb. 24, 1998) provides that if a person gains profits from the issuance of new shares at a low price, such profits shall not be included in the value of the donated shares in the case of the allotment of new shares by the method of securities under the Securities and Exchange Act and the provision of deemed public offering under Article 2-4 (4) of the former Enforcement Decree of the Securities and Exchange Act (amended by Presidential Decree No. 2050, Feb. 24, 1998) is a newly introduced system at the time of partial amendment in order to prevent the issuance of new shares to less than 50 people in the past after the issuance of one new shares to less than 50 people in the past, it shall not be deemed that the issuance of new shares is an exception to the issuance of new shares by the issuer under Article 39 (1) 1 (a) and (c) of the former Enforcement Decree of the Securities and Exchange Act.

4) Accordingly, in this case, the non-party company passed a resolution at the board of directors to issue new shares only for five persons with a special interest with the plaintiff et al. from the beginning to a major shareholder. Accordingly, in the case of the allocation of new shares in this case, the allocation of new shares cannot be deemed to constitute "distribution by the method of public offering of new shares, which is an exception to the deemed donation due to the offering of new shares as provided in Article 39 (1) 1 (a) and (c) of the former Act

3. Conclusion

Therefore, the plaintiff's claim of this case is dismissed as it is without merit, and it is so decided as per Disposition.