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

The grounds of appeal are examined (to the extent of supplement in case of supplemental appellate briefs not timely filed).

1. Article 93 Subparag. 10(a) of the former Corporate Tax Act (amended by Act No. 8831, Dec. 31, 2007; hereinafter the same) provides that “income generated from the transfer of stocks, investment certificates, and other securities issued by a domestic corporation” as one of the domestic source income of a foreign corporation subject to corporate tax.

Meanwhile, the main text of Article 1 of the former Securities Transaction Tax Act (amended by Act No. 9274, Dec. 26, 2008; hereinafter the same) provides that “The transfer of share certificates or equity shares shall be subject to the securities transaction tax under this Act” and Article 2(3) provides that “The transfer of share certificates or equity shares means the transfer of ownership at a cost due to contractual or legal causes.”

2. citing the reasoning of the judgment of the court of first instance, the court below, citing the following facts: ① Amaus IT Group S.A., which is a Spanish corporation (hereinafter “former Amas”) has been merged with M PPortfro S.A. (hereinafter “this case’s merger”); ② The ownership of the former Amaus Group was changed from the Plaintiff (hereinafter “ITF Group S.A.) to the Plaintiff on August 1, 2006, which was the parent company holding 60.83% of its outstanding shares; ② the former shares was transferred to the Plaintiff on the grounds that the former shares were merged with MM Portfro S.A. (hereinafter “M.”); ② the former shares were transferred to the Plaintiff on the grounds that the latter shares were transferred to the Plaintiff (hereinafter “the former shares”) and the latter shares were owned by the head of the tax office 30% of the shares issued by the Defendant 2325% of the new shares (hereinafter “the former shares”).