Financial Transactions and Withdrawal of Property
Financial Transactions of Ethnic Koreans of Foreign Nationality- Foreign nationals seeking to engage in capital transactions in Korea must make a declaration to the Minister of Strategy and Finance (main sentence of Paragraph 1 of Article 18 of the Foreign Exchange Transactions Act and Paragraph 1 of Article 32 of the Enforcement Decree of the Foreign Exchange Transactions Act).
- Ethnic Koreans of foreign nationality who make a declaration of domestic residence have the same rights as a Korean national in the use of domestic financial institutions, such as the opening of deposit/savings accounts, application of interest rate, and deposits/withdrawals (main sentence of Article 12 of the Act on the Departure/Entry and Legal Status of Overseas Koreans).
Procedure of Withdrawal of Domestic Property- If any of the following domestic properties are withdrawn abroad by an individual migrating overseas for the purpose of livelihood (including his or her kin), for marriage with a foreign national, or in response to an invitation from a relative, who then acquires a foreign nationality, a foreign exchange transaction bank must be designated (Article 2 of the Emigration Act and Item B of Subparagraph 29 of Article 1-2 and Paragraph 1 of Article 4-7 of the Foreign Exchange Transaction Regulations).
1. Proceeds from the disposition of real estate (including financial assets acquired from the sale of real estate)
2. Capital and debt related to domestic savings/trust accounts; proceeds from the sale of securities
3. Loans in KRW acquired from an institution involved in handling foreign exchange with a deposit or real estate owned under the name of the overseas Korean national as collateral
4. Security deposit on real estate owned under the name of the Korean national residing abroad
- For withdrawal of the funds specified from 1 to 4 above, one of the following documents corroborating the circumstances under which the funds were acquired must be submitted to the head of the designated foreign exchange transaction bank (Paragraph 2 of Article 4-7 of the Foreign Exchange Transaction Regulations).
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Classification |
Corroborative document |
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Proceeds from the disposition of real estate |
Certificate of proceeds from the sale of real estate issued by the head of the tax office with jurisdiction over the location of the real estate sold or the final address of the applicant (limited to cases in which an application for a certificate is made less than five years after the disposition of real estate) |
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Total proceeds specified in 2 to 4 above in excess of USD 100,000 |
Certificate of source of funds for the total amount issued by the head of the tax office with jurisdiction over the address of the designated foreign exchange transaction bank or the last address of the applicant |