Financial Transactions
Use of Financial Institutions
- Korean nationals residing abroad with resident registration in Korea 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).
Foreign Exchange Transactions
- A Korean national residing abroad who employs any of the following means of remittance in export or overseas remittance shall receive the same treatment as an ethnic Korean of foreign nationality in the remittance and import/export declaration specified in Article 15 and Article 17 of the Foreign Exchange Transactions Act (Article 13 of the Act on the Departure/Entry and Legal Status of Overseas Koreans).
· Proceeds from the sale or expropriation of domestic real estate owned before residing in a foreign country
· Import or remittance into Korea from a foreign country
Withdrawal of Domestic Property
Procedure of Withdrawal of Domestic Property
- A Korean national residing abroad who is a permanent resident of a foreign country or of an equivalent standing and seeks to withdraw any of the following domestic properties (including property generated after acquiring the status of a Korean national residing abroad), owned under his or her own name, to a foreign country must designate a foreign exchange transaction bank (Subparagraph 29 of Article 1-2 and Paragraph 1 of Article 4-7 of the Foreign Exchange Transaction Regulations).
1. Proceeds from 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
- A Korean national residing abroad who is a permanent resident of a foreign country or of an equivalent standing and seeks to withdraw the funds specified from 1 to 4 above must submit one of the following documents corroborating the circumstances under which the funds were acquired 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
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Corroborative document
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Proceeds from disposition of real estate
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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 applicant’s latest address (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
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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 However, for income obtained from domestic employment or work, income from the operation of a freelance business acquired in the past three months from the month of export, and social insurance and benefit payments received from within the country or other similar income within that range, it may be substituted by submission of documents proving the source of acquisition.
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