The method of calculating the actual transaction value of stocks at the time of receipt by mixing listed stocks with other listed stocks and cash, and the transfer value at the time of absence thereof.

Inasmuch as the actual transaction price is unclear after mixing cash and stocks with the transfer price of stocks, it is reasonable to view that a corporation A, which received the total amount of the transfer price from a acquiring corporation in cash, is calculated by 32,845 won per share of stocks, based on the calculation of the Plaintiff’s transfer price.

Article 96 of the Income Tax Act

1. The part of the judgment of the court of first instance against the plaintiff that ordered revocation shall be revoked next.

2. The Defendant’s disposition of imposition of capital gains tax of KRW 42,354,94,94,019 against the Plaintiff on March 10, 2004, which exceeds KRW 36,214,254,99, and securities transaction tax of KRW 773,585,769, each of which exceeds KRW 668,024,70, shall be revoked.

3. The plaintiff's remaining appeal is dismissed.

4. The total costs of the lawsuit shall be seven minutes, and the remaining costs shall be borne by the plaintiff, and the defendant, respectively.

The decision of the first instance is revoked. Each disposition of the Defendant rendered on March 10, 2004 by KRW 42,354,994,590 (which appears to be a clerical error in KRW 42,354,94,94,019) and securities transaction tax of KRW 773,585,890 (which appears to be a clerical error in KRW 773,585,769) shall be revoked.

1. Details of taxation; and

A. The Plaintiff and 8 domestic and foreign corporations (referring to ○-○○○○○○○, ○-○○○○○○○○○○○○○, 3 ○○○○○○○○○○○○○○○○○○○○○○○, 2 ○○○○○○○○○, and 3 ○○○○○○○○○○○○○○○○○, which are affiliated with the ○○○○○○○○○○ Group; hereinafter referred to as “transferors”; hereinafter referred to as “domestic corporations”; ○○○○○○○○, a registered company (hereinafter referred to as “○○○○○○○○”), which are affiliated with the ○○○○○○○○○○○○○○○ Group, and ○○○○○○○○○○○○○○○○○ Group, which are affiliated with the ○○○○○○○ Group; hereinafter referred to as “○○○○○○○○○ Group”).

B. On October 5, 200, the Plaintiff received 66,69,526,019 won in cash from ○○○○○ in return for the transfer of 5,883,218 shares owned by ○○○○○○○○○○○ (hereinafter “○○○○○”). On the other hand, the Plaintiff issued 421,265 shares issued by ○○○○○○○○○○ Co., Ltd. (hereinafter “○○○○”).

C. The Plaintiff reported and paid KRW 7,201,375,342 of the transfer income tax calculated according to the standard market price of the instant shares (average closing price of 13,600, Oct. 5, 2000, the transfer date) on May 31, 2001, and reported and paid KRW 7,201,375,342 based on the amount obtained by subtracting the amount of price limit determined by the Securities Association from the standard market price of the instant shares on November 10, 201 (12,200 won per share) based on securities transaction tax (12,876,290 won per share).

D. In the course of investigating the Plaintiff, the director of the regional tax office of ○○○○○○○○○○○○○○ in the course of having reached an agreement between the Plaintiff and ○○○○○○○○○○○ in the amount of KRW 390,00 per share of the instant shares. Considering that the actual transaction price of the instant shares was the actual transaction price, the director of the regional tax office:6,69,526,019 won in cash that the Plaintiff received and transferred the instant shares and received, and then notified the Defendant of KRW 230,962,876,019 in the amount calculated by converting the instant shares into KRW 164,293,293,350,000 per share into KRW 164,293,350,000 ( KRW 390,00 per share) and the instant

E. On March 10, 2004, the Defendant determined and notified capital gains tax of KRW 150,216,642,589 as well as KRW 159,187,616,419 as well as capital gains tax of KRW 48,279,58,590, and securities transaction tax of KRW 875,531,890 as of October 200 on the ground that the Plaintiff omitted returns of KRW 150,216,642,589 as well as KRW 159,616,419 as a result of the Plaintiff’s notification of taxation data by the Commissioner of the ○○ Regional Tax Service (hereinafter “the first taxation disposition”).

F. On June 1, 2004, the Plaintiff appealed to the National Tax Tribunal on June 1, 2004. On April 18, 2006, the National Tax Tribunal reported the transfer value of the instant shares to the National Tax Tribunal. On the ground that “The Plaintiff transferred the instant shares and received the price for the transfer of cash and ○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○ KRW 145,756,200, Jul. 25, 2002).

G. On May 28, 2006, according to the decision of the National Tax Tribunal, the Defendant notified the Plaintiff of the amount of tax imposed by the first taxation by reducing the amount of tax to KRW 42,354,94,019, and the securities transaction tax to KRW 773,585,769, respectively (hereinafter “instant taxation”).

[Reasons for Recognition] Facts without dispute, Gap evidence 1-1, 2, Gap evidence 2, 3, Eul evidence 1-1 to 3, Eul evidence 2-1, 2, Eul evidence 3, and the purport of the whole pleadings

2. Whether the taxation disposition is legitimate

A. The plaintiff's assertion

As to the Defendant’s assertion that the instant taxation disposition is lawful on the premise that there exists the actual transaction value related to the transfer of shares, the Plaintiff asserts that the instant taxation disposition is unlawful on the following grounds.

(1) The Plaintiff and ○○○○ does not have any agreement on the transfer value of the instant shares, and there is no actual transaction value. In addition, the National Tax Tribunal concluded that there was no actual transaction value in the instant case filed by the Plaintiff regarding the transfer of the instant shares, and decided that the tax base and tax amount should be revised based on the market price at the time of transfer. Since the Defendant made a reduction and correction accordingly, the grounds for disposition of the instant tax disposition should be deemed to have been changed to the calculation of the tax base and tax amount based on the market price at the time of transfer of the instant shares on the premise that there was no actual transaction value. Therefore, the Defendant’s assertion that the actual transaction value exists in the instant lawsuit violates the binding force of the ruling, the duty to present the grounds for disposition required by the administrative procedure, the principle of protection

(2) If there is no actual transaction price under the Income Tax Act, the transfer price is not the market price at the time of transfer.

The standard market price shall be calculated based on the standard market price, and the subject of the assessment is the shares of this case rather than the shares of ○○○○○○○○○○○○○, and the time when the subject of the assessment is the basis should be October 5, 200, which is the date when the Plaintiff received the total amount of the transfer price from ○○○○○○○○○○○. Thus, the instant taxation that calculated the tax base based on the market price of ○○○○○○○

(b) Related statutes;

Attached Form 3 shall be as listed in attached Table 3.

(c) Fact of recognition;

(1) The contents of the transaction terms negotiation between the transferor and the ○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○ Shares as the price for transfer of the ○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○ was merged on July 30, 201) are as follows: (a) the ○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○ share was 40,00 won per share; and (b) the ○○○○○○○○ share was partly sold at a price that would substantially incur 100 shares.

(2) On June 8, 2000, the Plaintiff and the ○○○○ Group agreed to receive 76,923 shares from ○○○○○ Group as compensation for management rights (30,000,000 + 76,923.09 shares = 390,000), ○○○○○ Group and ○○○○○ Group agreed to grow the shares in proportion to the ratio of the shares sold (cash, promissory notes, and ○○○○○○○ shares) allocated to both groups by means of payment, respectively. According to Appendix 2.1 attached to the draft agreement drawn up by the transferor at the time, the Plaintiff transferred the shares of this case to ○○○○○○○○○ Group and ○○○○○○ Group as compensation for management rights (30,000,000,0000 + 76,000,000,000).

(3) 양도인들과 ○○○ 사이에 2000. 6. 15. 체결된 주식구매계약의 내용은, 기존에 합의된 계약 중 양도인들에게 배정된 ○○○○○○○ 주식 중 1주 미만의 주식 합계 4.9795주를 주당 390,000원으로 계산하여 그 합계 1,942,000원을 양도인들에 배정된 현금에 추가하는 것 이외에 변동된 계약내용은 없었다. 위 계약에 의하면, ○○○가 양도인들에게 양도인들 소유 주식의 양수대가로 현금 합계 748,728,282,200원(25%), 약속어음 합계 972,876,608,801원(35%), ○○○○○○○ 주식 합계 3,024,397주(40%)를 지급하고, 양도인들 소유 주식을 양수하는 것이었으며, 원고의 경우 이 사건 주식을 양도하고, 그 대가로 현금 70,598,660,944원{= 70,598,616,000원 + 44,944원(≒ 0.1152주 X 390,000원)}의 지급과 ○○○○○○○ 주식 444,773주를 양도받는 것이었다.

(4) On July 25, 200, the contents of the subsidiary contract as of July 200 include the ratio of 40% of the transfer price of shares owned by the transferor to the shares of ○○○○○○○○○ (40%) and the ratio of cash, etc. (60%). However, the ratio of the amount to be paid with a promissory note out of cash and the number of shares to be paid to the shareholders of ○○○○○○○○○○○○○○○○○○○○○○○ was partly adjusted. Examining the details of partial adjustment, the amount of damages as a result of negotiations on the demand for damages by ○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○’s shares, 13,49,999,998 won were deducted from cash (original currency), 235,80100 shares out of 200.7.700.0 shares.

(5) On July 26, 200, the following day, the transferor except the Plaintiff received the transfer price of shares owned by the transferor from ○○○○○○ in a lump sum, but the Plaintiff received the transfer price on October 5, 200 in order to avoid the transfer income tax out of the short-term holding of shares in this case. The details of the number of shares transferred by the transferor, the won, US dollars, promissory notes, and the number of ○○○○○○○○○○○○○○○○○○○○ number of shares owned by the transferor are as listed below.

transferor

The number of transferred shares

Method of payment of price

won in won

US$S

Promissory Notes (won)

○○○○○

Number of Stocks

○-○ Lt.

7,952,804

41,184,531,397

29,035,919

15,824,861,620

217,220

○-○ Lt.

6,882,481

35,641,966,450

25,128,139

100,236,647,279

187,985

○-○ Lt.

7,076,337

36,645,838,386

25,835,913

103,059,971,527

193,280

Sub-committees

21,911,622

113,472,36,233

79,99,971

319,121,480,426

598,485

○-○ Lt.

28,707,767

144,524,133,550

20,491,404

478,682,525,751

897,731

○○ ○

4,159,686

25,683,322,418

9,508,625

Sub-committees

32,867,453

170,207,455,968

120,000,029

478,682,525,751

897,731

○ Stock Company

11,330,759

128,402,163,332

811,334

5,883,218

66,669,526,019

421,265

○ Stock Company

1,500,000

16,998,400,325

107,406

○○ Co., Ltd.

1,500,000

16,998,400,325

107,406

Sub-committees

20,213,977

29,068,490,001

1,447,411

Total

74,993,052

512,748,282,202

200,000,000

797,804,006,177

2,943,627

(6) Meanwhile, examining the method of payment by classifying the transferor, such as the plaintiff, etc. as ○○○ Group, ○○○○ Group, and a national shareholder as above, the ratio paid in Korean won, US dollars, and the amount paid as promissory note, the ratio paid as ○○○○○○○○○○○○○○ shares, and the transfer value per share of the instant shares are as follows (However, the exchange rate, other than the plaintiff, is 1,114.90/$$1,000, which is the base rate for trading on July 26, 2000 when the transferor, other than the plaintiff, received the en bloc, and the per share value of ○○○○○○○○○○○○ shares, shall be 346,00 won as of July 25, 200).

(unit: million won)

Stockholders

Number of Transfer Shares

Method of payment of price

Transfer value per share;

Cash, etc.

○○ Stocks

Total

Number of shares

Ratio (%)

Amount

Ratio (%)

Quantity

Value;

Ratio (%)

Amount

Ratio (%)

○ Group

(○) (○)

32,867,453

(4,159,686)

43.86

(5)54)

782,677

(136,625)

71.6

898

310,614

28.4

1,093,293

(136,625)

42.84

(5)35)

3,264

(32,845)

○ Group

21,911,622

29.21

521,190

71.6

599

207,076

28.4

728,861

28.56

3,264

Korean shareholders

20,213,977

26.95

29,069

31.4

1,447

500,804

68.6

729,873

28.59

36,107

guidance.

74,993,052

100

1,533,532

60.0

2,944

1,018,494

40.0

2,552,027

100

34,030

(* The transfer value per share shall be discarded less than one won for the convenience of calculation; hereinafter the same shall apply)

(7) On July 25, 200, the trading price per share on the KOSDAQ market of the instant shares was KRW 16,800 on July 26, 200, KRW 17,700 on July 26, 200, and KRW 14,450 on October 5, 200. The trading price per share on the ○○○○○ Stock Exchange was KRW 394,000 on June 5, 200, KRW 37,000 on June 8, 200, KRW 357,00 on June 15, 200, KRW 357,00 on July 25, 200, KRW 346,00 on July 26, 200, KRW 14,450 on October 5, 200 on the stock exchange.

[Ground of recognition] Facts without dispute, Eul's evidence Nos. 4 through 8, 10, 11 each, 2, Eul's evidence Nos. 9 and 12, and the purport of the whole pleadings

D. Determination

(1) Whether the grounds for disposition can be seen as changed

According to the above facts and evidence evidence No. 2, the purport of the National Tax Tribunal's decision is that "Article 95 (1) of the former Income Tax Act provides that "the transfer value of the capital gains shall be interpreted as all income acquired by the transferor in a specific transaction. Thus, the transfer value of the stocks of this case shall be the sum of cash received by the plaintiff ○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○’s market price at the time of July 25, 200, since the transfer value of the stocks of this case was finally determined on July 25, 200. Thus, the plaintiff’s assertion that the transfer value of the stocks of this case should not be determined based on the market price of the stocks at the time of the initial calculation of the transfer value cannot be accepted as it did not exist in relation to the plaintiff’s claim."

(2) Whether there exists and amount of the actual transaction value with respect to the transfer of the instant shares

(A) The actual transaction price, which is the basis for calculating gains on transfer under Article 96 (2) of the former Income Tax Act (amended by Act No. 6292 of Dec. 29, 2000), refers to the actual amount of an agreement in return for the actual transaction price itself or at the time of the transaction (see, e.g., Supreme Court Decision 2005Du2971, Sept. 28, 2006).

(B) However, as seen above, ○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○ 6’s shares held by ○○○○○○○○○○○○○○○ 6’s shares. In the event that ○○○○○○○○○ 6’s shares and ○○○○○○○ 6’s shares and ○○○○○○○ 6’s shares and ○○○○ 2’s shares and ○○○ 6’s shares and ○○○○ 6’s shares and ○○○ 6’s shares and ○○○ 6’s shares and 6’s shares were finally fixed by concluding an agreement on purchase of shares on June 15, 200 with ○○○ 6’s shares and 7○ 6’s shares and shares that ○○○○○ 6’s shares and received on the basis of the same standards.

③ As seen above, the transferor including the Plaintiff and ○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○ in the process of concluding the instant share purchase contract was finally and finally determined on July 25, 200, and the next day was immediately paid the transfer price in a lump sum. In light of the situation that the transferor and ○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○ was determined by taking account of the market price at the time of the instant share purchase contract, and there is no specific evidence to deem the transfer price in full amount between the Plaintiff and 34.

(C) If so, the actual transaction price of the instant shares is 193,234,295,210 won (= 32,845 won X5,883,218 shares) calculated by adding the transfer price per share to 32,845 won, so the Plaintiff’s assertion that there is no actual transaction price in relation to the transfer of the instant shares cannot be accepted.

(D) However, if a reasonable tax amount is calculated using the actual transaction price of the instant shares as above KRW 193,234,295,210, the portion exceeding each amount of the instant taxation is unlawful, as stated in the tax calculation table in attached Tables 1 and 2, inasmuch as capital gains tax is KRW 36,214,254,98, and securities transaction tax is KRW 668,024,704, and the amount exceeding each amount of the instant taxation is unlawful.

3. Conclusion

Therefore, the part of the taxation in this case exceeding KRW 36,214,254,98, and securities transaction tax 668,024,704 among the taxation in this case must be revoked. Thus, the plaintiff's claim in this case shall be accepted within the scope of the above recognition, and the remaining claims shall be dismissed for the reason that there is no reason. Since the judgment of the court of first instance is unfair with a different conclusion, the part of the judgment of the court of first instance which accepted part of the plaintiff's appeal and revoked the part of the judgment in the judgment of the court of first instance which ruled against the plaintiff as to the subsequent cancellation order, and the part which exceeds the capital gains tax of this case exceeding KRW 36,214,254,98, securities transaction tax of this case and KRW 668,024,704 among the taxation in this case

(Attached Form 1)

Table of Tax Calculation (1)

(unit: Won)

Gu Sector

taxation of this case

Justifiable Tax Amount

The transfer value (1) of the shares in this case

193,234,295,210

Value(2) of the internal stock

2,910,155,950

Other shares(3)

1,047,799,200

Transfer value (4 =1 +2 +3)

216,385,171,169

197,192,250,360

Acquisition Value (5)

47,522,198,059

47,522,198,059

Necessary expenses (6)

1,070,667,677

983,970,895

Capital gains (7 =4-5-6)

167,792,305,433

148,686,081,406

Capital gains basic deduction (8)

2,500,000

2,500,000

Tax Base (9=7-8)

167,789,805,433

148,683,581,406

Tax Rate

20%

20%

calculated tax amount (10)

3,557,961,086

29,736,716,281

Tax amount paid (11)

7,201,375,342

7,201,375,342

Additional tax on negligent tax returns (12)

2,635,619,304

2,253,496,203

Additional dues (13)

13,362,78,971

11,425,417,856

Total determined tax amount (14 =10 +12 +13)

49,556,369,361

43,415,630,340

Amount of tax to be paid (15 =14-1)

42,354,994,019

36,214,254,998

1) Additional tax for failure to file a return: 112,676,704,692 (=148,686,081,406-36,009,376,714)/148,686,086,081,406 Won X29,736,716,281. X 0.1

2) Additional tax for insincere payment: X 1014 X (5/10,00) X 1014 22,535,340,939 won (29,736,716,281 won-7,201,375,342);

(Attached Form 2)

Table of Tax Calculation (2)

(unit: Won)

Gu Sector

taxation of this case

Justifiable Tax Amount

Tax Base

212,427,216,019

193,234,295,210

Tax Rate

5/1,000

5/1,000

calculated tax amount

1,062,136,080

966,171,476

Tax amount already paid

358,876,290

358,876,290

Additional Tax (10%)

70,325,979

60,729,518

Amount of tax payable;

73,585,769

668,024,704

(Attached Form 3)

Related Acts and subordinate statutes

【former Income Tax Act (amended by Act No. 6292 of Dec. 29, 2000)】

Article 94 (Scope of Transfer Income)

The transfer income shall be the following incomes generated in the current year:

3. Income accruing from the transfer of stocks or contribution shares listed on the Korea Stock Exchange, as prescribed by the Presidential Decree;

4. Income accruing from the transfer of stocks or investment shares not listed on the Korea Stock Exchange, as prescribed by the Presidential Decree;

Article 95 (Transfer Income Amount)

(1) The transfer income amount shall be the amount calculated by deducting the special deduction for long-term holding from the amount (hereinafter referred to as “transfer marginal profits”) obtained by deducting the necessary expenses as prescribed in Article 97 from the total gross income amount of transfer income as prescribed in Article 94 (hereinafter referred to as “transfer value”).

Article 96 (Value of Transfer)

(2) The transfer value of assets pursuant to the provisions of subparagraphs 3 through 5 of Article 94 shall be based on the actual transaction value at the time of transfer of relevant assets.

Article 97 (Calculation of Necessary Expenses in Transfer Income)

(5) Matters necessary for calculation of necessary expenses, such as the scope of actual transaction price required for acquisition and gift tax amount shall be prescribed by Presidential Decree.

In calculating gains on transfer of assets (the time of transfer or acquisition), the time and time of transfer shall be determined by the Presidential Decree.

Article 99 (Computation of Standard Market Price)

(1) The standard market price pursuant to the main sentence of Article 96 (1), the main sentence of Article 97 (1) 1 (a), Articles 100 and 114 (5) shall be as follows:

2. Assets as prescribed in subparagraphs 2 through 5 of Article 94:

The value assessed by the method prescribed by Presidential Decree in consideration of the types, scale, transaction conditions of transferred assets and the appraised value of inheritance and accounting, etc.

Article 114 (Determination, Revision, and Notification of Tax Base for Transfer Income and Amount of Tax)

(2) If any omission or error is found in the details reported by a person who has made a preliminary return under Article 105 or a person who has made a final return under Article 110, the head of the tax office or the local tax office having jurisdiction over the place of tax payment

(4) Where the chief of the tax office having jurisdiction over the place of tax payment or the Commissioner of the Local Tax Service makes a decision or rectification on the tax base for transfer income and the amount of tax pursuant to paragraphs (1) through (3), he shall follow the value pursuant to Articles

(5) In applying the provisions of paragraph (4), where the transfer value or acquisition value is based on the actual transaction value, and where it is impossible to recognize or confirm the actual transaction value at the time of transfer or acquisition of the relevant assets by the books or other documentary evidence on the grounds as prescribed by the Presidential Decree, the transfer value or acquisition value may be determined or corrected by means of the transaction example value, appraisal value, conversion value (referring to the acquisition value converted from the actual transaction value, sale case value or appraisal value by the method prescribed by the Presidential Decree

【former Enforcement Decree of the Income Tax Act (amended by Presidential Decree No. 17032 of Dec. 29, 2000)】

○ Article 89 Cheongcho 3000 (Acquisition value of assets, etc.)

(1) The acquisition value of assets under Article 39 (2) of the Act shall be as follows:

1. For assets purchased from a third person, the amount calculated by adding the acquisition tax, the registration tax and other incidental expenses to the purchase price;

2. The aggregate amount of the raw material cost, labor cost, freight, loading and unloading cost, insurance premium, fees, public charges (including acquisition tax and registration tax), installation cost, and other incidental expenses, for assets acquired through the manufacture, production, construction, etc. of the person concerned;

3. For assets other than those under subparagraphs 1 and 2, the current market price as at the time of acquisition.

Article 157 (Scope of Land, etc.)

(5) The term "stocks or equity shares not listed on the Korea Stock Exchange, which are prescribed by Presidential Decree" in subparagraph 4 of Article 94 of the Act means stocks, etc. not falling under Article 158 (1) 1, 4 or 5 and not listed on the securities market, which fall under any of the following subparagraphs:

1. Transfer of stocks, etc. of a corporation other than a stock-listed corporation: Provided, That those falling under any of the following items shall be excluded:

(a) Those transferred by means of sale under Article 2 (4) of the Securities and Exchange Act in order to be listed newly on the securities market; and

(b) Those transferred by means of sale pursuant to Article 2 (4) of the Securities and Exchange Act in order to register in the Korea Securities Dealers Association pursuant to Article 172-2 of the Securities and Exchange Act.

(c) Transferring via the Association brokerage market.

Article 162 (Time of Transfer or Acquisition)

(1) The time of acquisition and transfer under Article 98 of the Act shall be the date of liquidation of the price of relevant assets (if the transferee agrees to bear the capital gains tax and additional tax of capital gains tax on the transfer of relevant assets, excluding such capital gains tax and additional tax of capital gains tax) except in the following cases:

Article 163 (Necessary Expenses for Transferred Assets)

(1) The term "actual transaction price required for acquisition" in the proviso to Article 97 (1) 1 (a) and (b) of the Act means the sum of the following amounts:

1. Values correspond to the cost for acquisition computed by applying mutatis mutandisArticle 89 (1) (including the discounted debt estimated by the present value under Article 89 (2) 1, but excluding the amount exceeding the market price under the unfair act and calculation);

Article 165 (Assessment of Standard Market Price of Assets Other Than Land and Buildings)

(1) The term “value appraised by such method as prescribed by the Presidential Decree” in Article 99 (1) 2 of the Act means the value falling under each of the following subparagraphs:

2. The value appraised by applying mutatis mutandis the provisions of Article 63 (1) 1 (b) (including "two months before and after the evaluation base date" in the provisions of item (a) of the Inheritance Tax and Gift Tax Act applicable mutatis mutandis under subparagraph 4 of Article 94 of the Act: The time of evaluation or the appraised shall be "one month before the date of transfer or acquisition", respectively) and (c). In this case, where the standard market price at the time of acquisition is impossible to be confirmed due to reasons such as loss, etc., the face value shall be applied as the standard market price at the

Article 176-2 (Estimated Decision and Revision)

(3) Where the transfer value or acquisition value is estimated, determined or revised pursuant to Article 114 (5) of the Act, it shall be the value calculated by applying the method falling under each of the following subparagraphs in sequential order: Provided, That where the transaction example referred to in subparagraph 1 or the appraisal value referred to in subparagraph 2 is deemed to be objectively unreasonable, such as the value, etc. based on the transaction with the related party provided for in Article

1. In case where there are transaction examples of assets bearing the identity or similarity with the relevant assets (excluding stocks, etc. of stock-listed corporations or Association-registered corporations) within 3 months before and after the date of transfer or acquisition respectively, such value;

2. Where there exist the appraisal prices which are appraised by two or more certified public appraisal corporations on the relevant assets (excluding stocks, etc.) within three months before and after the date of transfer or acquisition respectively, and deemed to bear credibility (limited to those whose standard date of appraisal is within three months before and after the date of transfer or acquisition respectively), the average value of such appraisal prices;

3. Acquisition price converted under paragraph (2); and

4. The standard market price.

【former Securities Transaction Tax Act (amended by Act No. 6302 of Dec. 29, 2000)】

Article 7 (Tax Base) The tax base of the securities transaction tax shall be as follows:

1. The tax base of the securities transaction tax on the stock certificates transferred from the Stock Exchange shall be the total sum of the transfer values of stock certificates transferred by the Stock Exchange after designating the issues of substitute settlement;

2. The tax base of the securities transaction tax in case where stock certificates less than trading unit or corporation stock certificates, etc. registered pursuant to subparagraph 4 of Article 3 of the Securities and Exchange Act are transferred through over-the-counter transactions as determined by the Securities and Exchange Commission pursuant to Article 194 of the Securities and Exchange Act;

3. In case of the transfer of stock certificates other than those as referred to in subparagraphs 1 and 2, the transfer value of the relevant stock certificates: Provided, That if the transfer value is unknown or such value is lower than the value appraised by the method as prescribed by the Presidential Decree (hereinafter “transfer value assessment method”), it shall be the value calculated by the relevant transfer value assessment method.

[Enforcement Decree of the Securities Transaction Tax Act (amended by Presidential Decree No. 17040, Dec. 29, 2000)]

Article 4 (Method of Evaluation of Transfer Value) The method of evaluation of transfer value of stock certificates, etc. under the proviso of subparagraph 3 of Article 7 of the Act shall be calculated by multiplying the value under each of the following subparagraphs by the trading quantity of the relevant stock certificates,

1. In case where the stock certificates listed on the Stock Exchange are transferred without going through the Stock Exchange or a securities company, the value obtained by deducting the amount of restricted price as determined by the Stock Exchange from the final market price of the stock certificates published by the Stock Exchange on the

2. Where stocks, etc. of a corporation registered pursuant to subparagraph 4 of Article 3 of the Securities and Exchange Act are transferred by means other than those determined by the Securities and Exchange Commission, the value obtained by subtracting the amount of restricted price set by the Securities Business Association from the trading standard price published by the Securities

3. Where stock certificates, etc. are transferred in any way other than those as referred to in subparagraphs 1 and 2, the value calculated in accordance with Article 63 of the Enforcement Decree of the Inheritance Tax