The judgment below

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

The defendant.

The grounds of appeal are examined (to the extent of supplement in case of supplemental appellate briefs not timely filed).

1. As to the Plaintiff’s ground of appeal No. 1

A. Article 40(1) of the former Inheritance Tax and Gift Tax Act (amended by Act No. 11609, Jan. 1, 2013; hereinafter “former Inheritance Tax Act”) provides, “In cases where a person acquires, acquires, or exchanges convertible bonds, bonds with warrant (referring to warrant certificates, if they are separated) or other stocks, or where a person who is the largest shareholder of a corporation that issued convertible bonds, etc. or a person who is a specially related person with them acquires, acquires, or exchanges bonds, etc. issued with rights to underwrite stocks (hereinafter “convertible bonds, etc.”) by acquiring, exchanging, or acquiring stocks, an amount equivalent to such profits shall be deemed the value of property donated to the person who has acquired profits, if any of the following profits have been acquired by converting, exchanging, or acquiring stocks with stocks by acquiring or exchanging convertible bonds, etc. (including cases where a person who has acquired stocks from an underwriter under Article 9(12) of the Financial Investment Services and Capital Markets Act, acquires, acquires, etc. stocks in excess of the market price of stocks by acquiring or exchanging convertible bonds, etc.” (b).

In addition, the former Financial Investment Services and Capital Markets Act was amended by Act No. 11845 on May 28, 2013, hereinafter referred to as the "Gu").