Involving the largest amount of corporate taxes in the history of Korea, this case concerned the reassessment of almost KRW 900 billion in paid corporate taxes. Including the tax refund amount, the total economic benefit realized from a favourable ruling reaches approximately KRW 1 trillion.
In 2007, the KORAIL (national railroad operator) executed an agreement for the sale of certain premise to Dream Hub PVF (the developer) at approximately KRW 8 trillion in connection with the Development Project for the Yongsan International Business District. KORAIL paid corporate taxes in an amount equalling KRW 900 billion for gains from the sale, but the Development Project failed and the land sales agreement was terminated. KORAIL subsequently filed a claim for reassessment of the paid taxes, which the taxation authority rejected claiming that the termination of the agreement does not constitute grounds for reassessment. Shin & Kim successfully obtained a ruling from the court of first instance that reversed the rejection and legitimized the termination of the agreement as grounds for reassessment. Shin & Kim also succeeded in obtaining a favourable ruling of the appellate court.