1. The defendant's appeal is dismissed.

2. The costs of appeal shall be borne by the Defendant.

Purport of claim and appeal

1..

1. Details of the disposition;

A. Plaintiff A, as the representative director of Plaintiff D (the trade name was changed to E and F Co., Ltd.; hereinafter “D”), held 5,000 shares out of 10,000 shares issued in total, and Plaintiff B and Plaintiff C, their wife, respectively.

B. On April 21, 2010, the Plaintiffs sold to G Co., Ltd. (hereinafter “G”) the total of KRW 900 million of the Plaintiff’s D Shares KRW 400,00, KRW 2500,000. The Plaintiff sold the remainder of KRW 100,000 to G on March 30, 201 (hereinafter “instant shares”) KRW 240,000,000 (hereinafter “instant shares”) by deeming that the shares were transferred by small and medium enterprises, and the Plaintiffs deemed that the shares were transferred to the Plaintiff’s shares (amended by Act No. 11146, Jan. 1, 2012; hereinafter the same shall apply) reverted to Plaintiff KRW 10,00, KRW 300, KRW 100, KRW 2000, KRW 3000, KRW 2500, KRW 2000, KRW 305, KRW 205, KRW 2000.

C. On April 21, 2010, the Busan Regional Tax Office deemed that D’s short-term loans of KRW 500 million (hereinafter “instant short-term loans”) as indicated in the balance sheet as indicated below as the result of the consolidated corporate tax assessment conducted by G as provisional payments against Plaintiff A, and that the provisional payments of KRW 134.5 million (hereinafter “instant provisional payments”) are deemed to be made against Plaintiff A. Thus, if offset is made pursuant to Article 53(3) of the Enforcement Decree of the Corporate Tax Act (amended by Presidential Decree No. 22951, Jun. 3, 2011; hereinafter the same), D constitutes a corporation whose total asset value under Article 94(1)1 and 2 of the Income Tax Act accounts for not less than 50/100 of its total asset value (hereinafter “real estate excessive possession corporation”). Thus, the shareholder of the pertinent corporation excessive ownership of real estate constitutes a corporation.