The judgment below is reversed and the case is remanded to Seoul High Court.

The grounds of appeal are examined.

1. Articles 119(1)10 and 120(1)9 of the former Restriction of Special Taxation Act (amended by Act No. 9921, Jan. 1, 2010; hereinafter the same) provide for exemption from registration tax and acquisition tax on the registration of property acquired due to human division meeting the requirements under each subparagraph of Article 46(1) of the Corporate Tax Act, thereby granting benefit from corporate tax exemption in accordance with the same standard as the special case of corporate tax.

The provision on taxation deferment for corporate division was prepared in the introduction of corporate restructuring tax system, such as corporate restructuring, through the amendment of the Corporate Tax Act on December 28, 1998. The purpose of this provision is to support corporate restructuring through corporate division, in the event there was a structural change in which part of the existing business is separated from a separate company, but there was no substantial change in the interests of the company, including the relationship of shares, if there was no change in the interests of the company.

The former Corporate Tax Act and subordinate statutes stipulate the requirements for the continuation of business among the standards for substantial identity as follows.

Article 46(1)3 of the former Corporate Tax Act (amended by Act No. 9898, Dec. 31, 2009; hereinafter the same) provides that "a corporation established by division shall continue to operate a business succeeded to from a divided corporation by the end of the business year which includes the registration date of the division as one requirement for deferred taxation." The latter part of Article 46(2) provides that "where a corporation established by division succeeds to a business succeeded to by a divided corporation with a corporation established by division and another merged corporation, such business shall not be deemed a discontinuance of business," and Article 46(4) of the same Act provides that "a corporation established by division shall not be deemed a discontinuance of business, if it succeeds to a business succeeded to by a divided

Presidential Decree of June 8, 2010, which was delegated by the former Enforcement Decree of the Corporate Tax Act.