The appeal is dismissed.

The costs of appeal are assessed against the defendant.

The grounds of appeal are examined.

1. Before the amendment by Act No. 9897 of Dec. 31, 2009 of the former Income Tax Act

(a) The same shall apply;

Article 104(1)4 (a) and (b) of the former Enforcement Decree of the Income Tax Act (amended by Presidential Decree No. 22034, Feb. 18, 2010) provides that the transfer income tax rate for “stocks, etc. of small and medium enterprises prescribed by Presidential Decree” shall be 10/100 of the transfer income tax base.

(a) The same shall apply;

Article 167-8 of the Act provides that “Small and Medium Enterprises as prescribed by the Presidential Decree” shall not apply to a small and medium enterprise falling under a small and medium enterprise under Article 2 of the Framework Act on Small and Medium Enterprises as of the end of the business year immediately before the business year immediately preceding the date of the transfer of stocks, etc.” In addition, Article 167(5) of the former Enforcement Decree of the Income Tax Act, Article 101 of the former Restriction of Special Taxation Act (amended by Act No. 9921, Jan. 1, 2010); Article 63(3) of the former Inheritance Tax and Gift Tax Act (amended by the Presidential Decree No. 9916, Jan. 1, 2010); Article 23(1) of the former Enforcement Decree of the Framework Act on Small and Medium Enterprises (amended by the Presidential Decree No. 2042, Feb. 18, 2010) shall not apply to calculating the market price of stocks of “small and Medium Enterprises” as prescribed by the Presidential Decree.