The case holding that land acquired by an insurer to increase its assets is land for business purposes.

In light of the provisions of Article 19 of the former Insurance Business Act (Act No. 3043 of Dec. 31, 197), Article 14 subparagraph 3 of the Enforcement Decree of the Insurance Business Act (amended by Presidential Decree No. 8865 of Feb. 27, 1978), and Article 15 (1) of the Enforcement Decree of the same Act (amended by Presidential Decree No. 8865 of Feb. 27, 1978), if the insurer acquired the building site and owned the building site within the limit of 2.68 percent of the total value of the assets by acquiring the building site, the acquisition of the building site belongs to the insurer's inherent business for the payment of insurance proceeds, and thus, it cannot be deemed that the building site is non-business land.

Article 19 of the Insurance Business Act (Presidential Decree No. 3043), Article 14(3) of the Enforcement Decree of the Insurance Business Act (Presidential Decree No. 8865), Article 15(1) of the Enforcement Decree of the Insurance Business Act (Presidential Decree No. 8865)

Dong Life Insurance Corporation

Changwon Market

The imposition of acquisition tax of KRW 34,320,00 against the plaintiff on July 24, 1981 by the defendant shall be revoked.

Litigation costs shall be borne by the defendant.

The same shall apply to the order.

(1) On July 24, 1981, the Defendant acquired on February 28, 1979 the Plaintiff’s 885 square meters of land for commercial use in Changwon-dong Central Business Area 885 square meters (hereinafter referred to as the “instant site”), and did not directly use it for its own proper purpose without justifiable reasons within six months, and calculated the acquisition tax amount by applying the heavy taxation rate pursuant to Article 112(2) of the Local Tax Act, deeming it as land for non-business use of a corporation, and deducted the acquisition tax amount already paid, and then additionally imposed the acquisition tax amount of KRW 34,320,000,000 including the acquisition tax amount of KRW 31,20,000 and the additional tax amount of KRW 3,120,000, and there is no dispute between the parties so notified.

(2) The plaintiff company is entitled to own real estate up to 20 percent of the total assets of the plaintiff company in order to guarantee the characteristics of the insurance company, the rules on asset management of the insurance company, and the articles of incorporation of the plaintiff company under the Insurance Business Act, the Enforcement Decree of the same Act, and the rights and interests of long-term policy holders and other interested parties, and to prepare the insurance money to be paid at the time of the insurance accident. Thus, the plaintiff company's acquisition and ownership of the building site constitutes a direct use for the insurance business's inherent purpose. However, the defendant argued that the acquisition tax on the building site should be imposed on the building site as above by deeming it as non-business land of the plaintiff company as illegal and revoked. Thus, the insurer under Article 19 of the Insurance Business Act (amended by Act No. 3043 of Dec. 31, 197

Under Article 14 subparagraph 3 of the Enforcement Decree of the same Act (Presidential Decree No. 8865 of Feb. 27, 1978), an insurer shall use the property by means of acquisition and use of real property.

Article 15 (1) 2 of the same Decree provides that the use of the property by an insurer shall not exceed 2/10 of its total assets. It shall be determined that Gap evidence Nos. 1 (Evidence No. 1; hereinafter the same shall apply), Gap evidence No. 4, Gap evidence No. 21, Gap evidence No. 5-1, No. 7 shall be deemed to be authentic by the testimony of the witness and vibration No. 1, No. 5-2, Eul evidence No. 1, No. 97, and the former purport of the pleadings. The plaintiff company shall be deemed to have established a life insurance business on April 17, 1957 for the purpose of 197. 29. The insurance contract and its reinsurance contract on June 29, 197, and the amount of its insurance premium and the amount of its total assets acquired by the corporation established by the State bonds, shares, local government bonds or special Acts shall be 90,000 won and shall be 97,000 won and shall be 97.

In light of the above facts, in order to secure the payment of insurance proceeds, the insurer shall use the real estate as property for the purpose of securing the payment of insurance proceeds, and the insurer shall acquire the building site and own the building site within the scope of not exceeding 2/10 of the total asset value as the ownership ratio of the total asset value by the Plaintiff Company to 12.68 percent. Thus, the acquisition of the building site shall be the method of using the property for the payment of insurance proceeds, which belongs to the Plaintiff Company's inherent business, and thus, the Defendant imposed the acquisition tax on the Plaintiff Company by deeming the building site as non-business land as non-business land.

Therefore, the plaintiff's claim of this case seeking the revocation of the acquisition tax imposition disposition by the defendant is unlawful, and therefore, it is reasonable to accept it, and it is so decided as per Disposition by applying Article 14 of the Administrative Litigation Act and Article 89 of the Civil Procedure Act to the burden of litigation costs.

Judges Yoon Young-ok (Presiding Judge)