Ministry of Strategy and Finance announces the basic direction of the New Foreign Exchange Act at the end of this month
Enacted after the abolition of the existing law to prevent foreign currency outflow
Instead of pre-reporting principle, post-reporting principle
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U.S. 1 Dollar
From the second half of next year, the government is promoting measures to eliminate the obligation to report in advance when remittances worth more than $50,000 a year. When you send money to study abroad or travel abroad, you only need to send the money first and then notify the authorities.
The Ministry of Strategy and Finance announced on the 16th that it is reviewing the enactment of a new foreign exchange management law (foreign exchange law) with these contents. The basic direction of the New Foreign Exchange Act will be announced at the earliest by the end of this month.
The government’s enactment of the New Foreign Exchange Act is intended to abolish the existing Foreign Exchange Management Act, which was enacted in 1999 to control foreign currency outflows, and to write a new foreign exchange transaction law tailored to our current economic size and international standards.
From the public’s point of view, the biggest concern is the abolition of prior notification when sending foreign currency for the purpose of studying abroad or traveling. Under the current law, you can freely transfer up to $5,000, but if it exceeds this limit, you must designate a foreign exchange bank and transfer money. Money in excess of $50,000 per year can only be remitted through a branch of a foreign exchange transaction bank, but before remittance, documents to prove the amount and reason for remittance must be submitted.
In order to remit more than 50,000 dollars for the purpose of studying abroad for a year, the burden of documents to be submitted to the authorities, such as seal certificate, immigration certificate, employment certificate, tax payment certificate, and power of attorney, is formidable.
The government plans to abolish this pre-reporting principle from the new foreign exchange law system. Transactions that need to be reported in advance, including transactions that require monitoring by the authorities, such as large-scale foreign exchange inflows and outflows, are listed in the law.
It is also promoting a plan to expand foreign exchange trading institutions limited to banks to the second financial sector that meets the monitoring capability standards. The government plans to prepare amendments to laws, enforcement ordinances, and enforcement rules within this year and implement them in earnest in the second half of next year at the earliest.
Reporter Sejong Lee Young-joon
