Where a corporation is established by succeeding or acquiring an existing factory, whether it is subject to the heavy registration tax.

Where an existing factory has been acquired by succession to the business in order to operate the business, the registration tax shall be heavy because it falls under the real estate registration pursuant to the establishment of a corporation in large cities as provided in Article 8-2 (1) 2 of the repealed Registration Tax Act.

Article 8-2 (1) 2 of the Registration Tax Act

Supreme Court Decision 77Nu273 Decided March 14, 1978

Attorney Park Il-chul, Inc., Counsel for the defendant-appellant

Litigation Performers et al. and two others of the East District Office

Seoul High Court Decision 77Gu204 delivered on January 31, 1978

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

The defendant litigant's grounds of appeal are examined.

According to the facts acknowledged by the court below, the defendant imposed the registration tax of this case on the plaintiff on July 25, 1976 on the ground that this was abolished by the plaintiff's transfer of ownership to the plaintiff in the name of the plaintiff, which constitutes Article 8-2 (1) 2 of the Registration Tax Act. However, the court below held that it is reasonable to interpret that the plaintiff's establishment of the plaintiff corporation for the purpose of electronic equipment export on July 1, 1974 after taking over all assets, including the building of this case, which is an electronic equipment manufacturing plant owned by the non-party, and the registration of transfer of ownership as to the building of this case was passed in the name of the plaintiff on December 27, 1974, but it cannot be deemed that this registration was a real estate registration of existing factory installed by the plaintiff, and it does not constitute a registration under Article 8-2 (1) 2 of the above Act.

However, the registration under Article 8-2 (1) 2 of the repealed Registration Tax Act includes the case of real estate registration following the establishment of a corporation in a large city, other than the case of real estate registration following the establishment of a factory in a large city where the court below reviewed. If the registration of the name of the plaintiff with respect to the building of this case is the case of registration of ownership transfer of the property acquired in order to carry out the purpose business in accordance with the establishment of the plaintiff, this case constitutes the real estate registration following the establishment of a corporation in a large city as provided in Article 8-2 (1) 2 of the repealed Registration Tax Act (see Supreme Court Decision 77Nu273 delivered on March 14,

In this case, it is difficult to conclude that the Defendant’s disposition of this case was erroneous without examining whether the case constitutes such a case. The lower judgment is reversed and the case is remanded to the Seoul High Court, which is the lower court.

This decision is consistent with the opinions of the involved judges.

Justices Kim Yong-chul (Presiding Justice)