(1) None of the following amounts shall be included in the gross income for the purpose of calculating the amount of income of a domestic corporation for each business year: <Amended on Dec. 31, 2011; Jan. 1, 2013; Dec. 15, 2015; Dec. 24, 2018>
1. An amount exceeding the par value of stocks issued: Where stocks are issued in excess of the par value, the amount exceeding the par value of stocks issued (referring to the amount exceeding the amount counted as capital, out of the issue price, in cases of non-par value stocks); provided, where stocks, etc. are issued by converting debts into equity, the amount of such stocks issued in excess of the market price referred to in Article 52 (2) shall be excluded herefrom;
2. Marginal profits from an all-inclusive share swap: The amount exceeding the increased capital of a wholly-owning parent corporation, where the maximum limit of capital increase referred to in Article 360-7 of the Commercial Act exceeds the increased capital of the wholly-owning parent corporation as a result of an all-inclusive share swap referred to in Article 360-2 of the same Act;
3. Marginal profits from an all-inclusive share transfer: The amount exceeding the equity capital of a wholly-owning parent corporation newly incorporated, where the maximum limit of the equity increase referred to in Article 360-18 of the Commercial Act exceeds the equity capital of the wholly-owning parent corporation as a result of an all-inclusive share transfer referred to in Article 360-15 of the same Act;
4. Marginal profits from capital reduction: The amount exceeding the amount paid for the cancellation of stocks and the return of stock prices and the amount appropriated for compensation for losses exceeding the amount reduced;
5. Marginal profits from a merger: The amount exceeding the amount of debts to which the surviving corporation succeeds from the disappearing corporation and the increased amount of the equity capital of the surviving corporation or the equity capital of the corporation newly incorporated as a consequence of the merger, where the value of the assets to which the corporation surviving a merger pursuant to Article 174 of the Commercial Act succeeds from the disappearing corporation exceeds the amount of debts to which the surviving corporation succeeds from the disappearing corporation and the increased amount of the equity capital of the surviving corporation or the equity capital of the corporation newly incorporated as a consequence of the merger; provided, the amount identified as gross income under this Act shall be excluded, where the value of assets to which the surviving corporation succeeds from the disappearing corporation exceeds the amount of debts to which the surviving corporation succeeds from the disappearing corporation, the amount paid to stockholders of the disappearing corporation, and the value of stocks;
6. Marginal profits from a division: The amount exceeding the amount of debts to which a corporation succeeds from the investing corporation, the amount paid to stockholders of the investing corporation, and the equity capital of the corporation newly incorporated or the increased amount of the equity capital of the surviving corporation, where the value of the assets invested in a corporation newly incorporated as a consequence of a division or a division and merger referred to in Article 530-2 of the Commercial Act or in a corporation surviving such division or such division and merger exceeds the amount of debts to which such corporation succeeds from the investing corporation, the amount paid to stockholders of the investing corporation, and the equity capital of the corporation newly incorporated or the increased amount of the equity capital of the surviving corporation.
(2) Amounts prescribed by Presidential Decree which are not subject to subparagraph 6 of Article 18 among the amounts in excess referred to in the proviso to paragraph (1) 1 shall not be included in the gross income of the relevant business year and may be appropriated for covering losses incurred in each business year thereafter.[This Article Wholly Amended on Dec. 30, 2010]