1. On September 4, 2014, the Defendant filed a request for correction of reduction of corporate tax of KRW 357,540,310 for the business year 2012 against the Plaintiff.

1. Details of the disposition;

A. The Plaintiff, a manufacturer of gold-type parts, etc., was a small and medium enterprise under the Restriction of Special Taxation Act until the business year of 2009 and was subject to special taxation by more than 100 billion won, but was not a small and medium enterprise. However, pursuant to the main text of Article 2(2) and proviso to Article 2(1) of the former Enforcement Decree of the Restriction of Special Taxation Act (amended by Presidential Decree No. 24368, Feb. 15, 2013; hereinafter the same), the Plaintiff was subject to the grace period from 2010 to 2013.

B. As of the business year 2012, the Plaintiff is an enterprise subject to external audit pursuant to Article 2 of the Act on External Audit of Stock Companies. As of December 31, 201, the Plaintiff holds 51% of the shares of the leading Lone Star Automatic Co., Ltd. (including shares held by relevant parties).

C. The Plaintiff, in accordance with Article 2(2) of the former Enforcement Decree of the Restriction of Special Taxation Act, deemed the grace period for the business year of 2012 to fall under the grace period for small and medium enterprises, applied the tax credit for research and development expenses and the tax credit for job creation investment under the Special Cases Concerning Small and Medium Enterprises under the Restriction of Special Taxation Act, and paid corporate tax calculated by applying the limit of entertainment expenses based on small

On August 7, 2013, the Defendant: (a) notified the Plaintiff on August 7, 2013, the Plaintiff, as a related company, to file a revised return, stating that the Plaintiff’s calculation of corporate tax by granting tax credit, etc. is problematic; and (b) provided that the Plaintiff’s revised tax credit was reduced on August 31, 2013, and that the Plaintiff did not meet the standards prescribed in Article 2(1)3 of the former Enforcement Decree of the Restriction of Special Taxation Act and Article 3(1)2(c) of the former Enforcement Decree of the Framework Act on Small and Medium Enterprises (amended by Presidential Decree No. 25302, Apr. 14, 2014; hereinafter the same).