Article 13-3 (Tax Special Treatment for Investment in and Acquisition of Material, Component, and Equipment Specialist Companies, etc. by Domestic Corporations)

If any of the following events occurs after an investing corporation has received a corporate tax deduction under Paragraph ①, the amount equivalent to the tax credit for the shares, etc. (in the case of subparagraph 3, an amount calculated as prescribed by the Presidential Decree), plus interest equivalent amount calculated as prescribed by the Presidential Decree, shall be paid as corporate tax when filing the tax return for the business year in which the event occurred, and such tax shall be deemed as the tax payable under Article 64 of the Corporate Tax Act. 1. Where the investing corporation, which received a corporate tax deduction under Paragraph ①, falls under the category of a major shareholder, etc. of the target investment company within 5 years after acquiring the shares, etc. 2. Where the target investment company fails to spend an amount equivalent to 80/100 or more of the capital increase funds paid by the investing corporation on R&D, human resource development, etc. related to materials, components, and equipment by the end of the business year ending on the third anniversary of the paid-in capital increase. 3. Where the investing corporation, which received a corporate tax deduction under Paragraph ①, disposes of the shares, etc. within 4 years after acquiring them. In this case, the disposed shares, etc. shall be deemed to be disposed of in the order in which they were acquired.

hereinafter] acquires shares, etc. in a foreign corporation related to materials, components, and equipment or national strategic technologies (excluding cases where the domestic corporation is a special relationship with the foreign corporation; hereinafter referred to as "target acquisition foreign corporation" in this Article), or acquires a business or assets equivalent to a business acquisition (hereinafter referred to as "acquisition" in this Article) related to materials, components, and equipment or national strategic technologies of a target acquisition foreign corporation (including indirect acquisition through a special purpose corporation established for the purpose of acquiring the target acquisition foreign corporation, hereinafter referred to as "acquisition purpose corporation" in this Article), by December 31, 2028, while meeting all the requirements specified in the following subparagraphs, considering the domestic industrial base, overseas dependency, etc., as prescribed by the Presidential Decree, an amount equivalent to 5/100 (10/100 for a medium-sized enterprise, 7/100 for a small and medium-sized enterprise) of the acquisition cost of shares, etc. or the acquisition cost of the business/assets (hereinafter referred to as "acquisition cost" in this Article) shall be deducted from the corporate tax for the relevant business year. In this case, if the acquisition cost per acquisition case prescribed by the Presidential Decree exceeds 500 billion won, the excess amount shall be disregarded. <Amended by Act No. 18022, Dec. 31, 2022, Act No. 18709, Dec. 23, 2025> 1. In the case of acquiring shares, etc.: The following requirements a. The domestic corporation and the target acquisition foreign corporation shall have continuously operated their businesses for at least 1 year, respectively. b. The domestic corporation shall directly or indirectly acquire 50/100 or more of the total issued shares or total equity interests of the target acquisition foreign corporation (in cases where the domestic corporation is the largest shareholder or largest equity holder of the target acquisition foreign corporation and substantially controls its management, it shall be 30/100; hereinafter referred to as "基準지분비율" (standard equity ratio) in this Article), and shall hold such shares, etc. until the end of the business year in which the acquisition date falls. c. The shareholders or equity holders (hereinafter referred to as "shareholders, etc." in this Article) of the target acquisition foreign corporation at the time of acquisition shall not be major shareholders, etc. of the domestic corporation or the acquisition purpose corporation from the date of transfer of such shares, etc. until the end of the business year of the domestic corporation in which that date falls. d. The target acquisition foreign corporation shall continue its business that it has been engaged in prior to the acquisition until the end of the business year in which the acquisition date of the shares, etc. by the domestic corporation falls. 2. In the case of acquiring a business or assets: The following requirements a. The domestic corporation and the target acquisition foreign corporation shall have continuously operated their businesses for at least 1 year, respectively. b. The shareholders, etc. of the target acquisition foreign corporation shall not be major shareholders, etc. of the domestic corporation or the acquisition purpose corporation from the date of transfer of the business or assets until the end of the business year of the domestic corporation in which that date falls. c. The domestic corporation shall continue the business previously operated through the acquisition until the end of the business year in which the acquisition date of the business or assets falls. ④ Where any of the following events occurs within the period prescribed by the Presidential Decree, within 5 years from the date of acquisition, the domestic corporation that received a corporate tax deduction under Paragraph ③ shall pay the amount obtained by adding the interest equivalent amount calculated as prescribed by the Presidential Decree to the tax credit received under Paragraph ③ as corporate tax when filing the tax return for the business year in which the event occurred, and such tax shall be deemed as the tax payable under Article 64 of the Corporate Tax Act. However, in the case of acquiring a business or assets, subparagraph 3 shall not apply. <Amended by Act No. 18022, Dec. 31, 2022> 1. Where the shareholders, etc. of the target acquisition foreign corporation at the time of acquisition are major shareholders, etc. of the domestic corporation or the acquisition purpose corporation. 2. Where the target acquisition foreign corporation ceases to operate its previously conducted business, or ceases to operate the business succeeded through the acquisition. 3. Where the equity ratio of the target acquisition foreign corporation directly or indirectly held by the domestic corporation at the end of each business year (hereinafter referred to as "current equity ratio" in this Article) becomes lower than the equity ratio at the time of acquisition of shares, etc. (hereinafter referred to as "original equity ratio" in this Article).

Where two or more domestic corporations jointly acquire a target acquisition foreign corporation as prescribed by the Presidential Decree (hereinafter referred to as "joint acquisition"), it shall be deemed that one domestic corporation has acquired it, and the tax credit for each domestic corporation participating in the joint acquisition shall be an amount calculated and prorated in proportion to the acquisition cost. <Amended by Act No. 18022, Dec. 31, 2022>

The requirements for medium-sized enterprises, the scope of major shareholders, etc., criteria for continuing and ceasing previously conducted businesses, and other necessary matters for applying Paragraphs ① through ⑦ shall be prescribed by the Presidential Decree.