1. All of the plaintiff's claims are dismissed.

2. The costs of lawsuit shall be borne by the Plaintiff.

1. Details of the disposition;

A. The Plaintiff is running passenger transportation of high-speed railroads, freight transportation, rental business, etc. subject to taxation under the Value-Added Tax Act, and general railroads and metropolitan railroad passenger transportation services subject to exemption under the Value-Added Tax

B. Pursuant to Articles 32 and 33 of the Framework Act on Railroad Industry Development, the Plaintiff respectively entered into an indemnity agreement for public service costs in 2009 with the Minister of Land, Transport and Maritime Affairs, and on March 19, 2009, and “public service cost indemnity agreement in 2010” during the year 2010.

(hereinafter “each of the instant contracts”. The main contents of each of the instant contracts provide three kinds of public interest services pursuant to Article 3 subparag. 11 and Article 32(2) of the Framework Act on Railroad Industry Development in 2009 and 2010, namely, (i) senior citizens, disabled persons, persons rendering distinguished services to the State (hereinafter “the reduction and exemption of fares”), (ii) the continuous operation of routes (hereinafter “a remote route”) which continue to provide basic railroad services for public interest, and (iii) the operation of special roads (hereinafter “special roads”) for the State’s special purpose, and (iv) the Minister of Land, Transport and Maritime Affairs compensates the expenses incurred in providing such public service.

C. The Plaintiff received 273,668,000,000 won (the amount of 104,449,000,000 won for the reduction of freight, the amount of 161,133,000,000 for the operation of a remote route, and the amount of 8,000,000 for the operation of a special Dong line, and the amount of 293,10,000,000 for the amount of compensation for the provision of public services during 2010 (the amount of 125,100,000,000 for the reduction of freight, the amount of compensation for the provision of public services (the amount of 166,20,000,000 for the operation of a remote route, the amount of 166,20,000,000 for the operation of a special Dong line,80,000,000 won).

(hereinafter “each of the public service costs of this case”) D.

The Plaintiff reported the value-added tax for the first period from 2009 to 2010, and considered the common purchase tax prior to the previous tax amount.