The appeal is dismissed.

The costs of appeal are assessed against the defendant.

The grounds of appeal are examined.

Article 93 subparag. 11 (b) of the former Corporate Tax Act (amended by Act No. 10423, Dec. 30, 2010; hereinafter “former Corporate Tax Act”) and Article 93 subparag. 10 (b) of the Corporate Tax Act provide that “income prescribed by the Presidential Decree as penalty or compensation paid in the Republic of Korea as one of the domestic source income of a foreign corporation” and Article 132(10) of the former Enforcement Decree of the Corporate Tax Act (amended by Presidential Decree No. 22577, Dec. 30, 2010) and Article 132(10) of the Enforcement Decree of the Corporate Tax Act provide that “The amount of damages paid due to breach or termination of a contract on property rights is the value of money or other goods paid in excess of the damages to the payment itself under the original contract irrespective of its title

citing the reasoning of the first instance judgment, the lower court, citing the reasoning of the judgment, i.e., (i) it is apparent in the text that the contract price is adjusted in cases where the delivery of a ship is delayed after the lapse of a certain grace period after the date of the delivery agreement. As such, in cases of delay in delivery, it shall be deemed that there was an agreement between the parties to adjust the contract price in accordance with the language and text thereof; (ii) even if the delivery of a ship is delayed, the buyer may rescind the contract only after the expiration of the price adjustment period; and (iii) the Plaintiff is entitled to a separate claim for damages when the contract is terminated; and (iv) the Plaintiff shall be deemed to have received only the remainder after deducting the amount of the case from the original ship price due to the delay in delivery from the owner of the ship; and (v) the Plaintiff shall be deemed to have received the relevant ship price in full in accordance with the payment clause on the contract immediately after the occurrence of a dispute