The judgment below

The part against the plaintiffs is reversed, and that part of the case is remanded to the Seoul High Court.

The grounds of appeal are examined.

1. As to the ground of appeal on the assessment method of the instant shares

A. Article 39(1)1(c) of the former Inheritance Tax and Gift Tax Act (amended by Act No. 9269, Jan. 1, 2010; hereinafter “Gift”) provides that in case where a corporation issues new stocks to increase its capital, a person, other than the shareholder of the relevant corporation, obtains profits by directly obtaining an allocation of new stocks from the relevant corporation, the amount equivalent to such profits shall be deemed the value of donated property to the person who has acquired such profits.

In addition, Article 29(3)1 of the former Enforcement Decree of the Inheritance Tax and Gift Tax Act (amended by Presidential Decree No. 22042, Feb. 18, 2010; hereinafter “Enforcement Decree of the Inheritance Tax and Gift Tax Act”) on the basis of delegation under Article 39(3) of the Inheritance Tax and Gift Tax Act provides that the amount calculated by multiplying the value calculated by subtracting the “number of new stocks per share subscribed value (b) after the capital increase” from the “number of new stocks issued by the person who has increased the number of stocks issued by the person who has increased the number of stocks)” calculated by the formula of “(a)” (Article 39(3)1 of the former Enforcement Decree of the Inheritance Tax and Gift Tax Act (amended by Presidential Decree No. 22042, Feb. 18, 2010; hereinafter “Enforcement Decree of the Inheritance Tax and Gift Tax Act”) by paragraph (4) of the same Article provides that the calculation of profits under paragraph (3) shall be based on the payment date of the stock price.”

Meanwhile, the latter part of Article 60(1) of the Inheritance and Gift Tax Act provides that the value of donated property of stocks and equity shares shall be the value appraised according to the valuation methods stipulated in Article 63(1)1(a), etc., and Article 63(1)1(a) of the Inheritance and Gift Tax Act provides that “the stocks and equity shares traded in the Korea Securities and Futures Exchange” shall be the average value of the closing market price of the Korea Securities and Futures Exchange (whether or not there is any transaction record) published every day during two months before or after the record date of appraisal.