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
In the Case of Residents
- A resident overseas Korean may make a payment without submitting supporting documents if the transaction is exempt from reporting under 「Foreign Exchange Transactions Regulations」 and falls under any of the following categories (Subparagraph1 of Article 4-3(1) of 「Foreign Exchange Transactions Regulations」):
1. If the total annual amount does not exceed USD 100,000
2. If the total annual amount exceeds USD 100,000, but the head of the foreign exchange bank can verify the nature and amount of the transaction through documentation
- Even when supporting documents are not submitted in accordance with the aforementioned 1 and 2, the person making the payment must explain the details of the transaction to the head of the foreign exchange bank and obtain confirmation through the procedure outlined in Article 2-1-2 of 「Foreign Exchange Transactions Regulations」 (Article 4-3(2) of 「Foreign Exchange Transactions Regulations」).
- A person intending to make a payment pursuant to the aforementioned 1 must designate a primary foreign exchange bank (Article 4-3(3) of 「Foreign Exchange Transactions Regulations」).
□ In the Case of Non-residents
- A non-resident overseas Korean may make a payment only after submitting documents proving the source of funds and obtaining confirmation from the head of a foreign exchange bank, if the case falls under any of the following categories (Article 4-4(1) of 「Foreign Exchange Transactions Regulations」):
1. If the non-resident (including spouse and direct lineal ascendants and descendants) receives or carries in foreign payment means from abroad within the scope prescribed in 「Foreign Exchange Transactions Regulations」
√ However, in the case of a non-resident, this is limited to foreign payment means received or carried in after their most recent entry into Korea
2. If within the scope reported to the Governor of the Bank of Korea pursuant to Subparagraph 3 of Article 2-3(1) of 「Foreign Exchange Transactions Regulations」
3. If within the income earned from domestic employment, work or self-employment activities, or social insurance and benefits, pensions or other similar payments from Korea, and payment is made through a designated foreign exchange bank
4. Payment of consular income and other service fees collected by diplomatic missions in Korea
5. Payment within the scope of sales proceeds under Subparagraph 4 of Article 2-2(1) of 「Foreign Exchange Transactions Regulations」
6. Payment by a non-resident in accordance with the proviso to Article 2-3(4) of 「Foreign Exchange Transactions Regulations」
7. Other payments recognized under Chapters 7 to 9 of 「Foreign Exchange Transactions Regulations」
8. If a non-resident overseas Korean makes a payment through a designated foreign exchange bank within the limit stated in a certificate of real estate sale proceeds or a certificate of source of funds issued by the relevant district tax office head
- If none of the cases from the aforementioned 1 to 8 apply, a non-resident may make a payment within an annual limit of USD 50,000 through the designated foreign exchange bank referred to in the aforementioned 3 or through a credit card company. However, if using a credit card company, the card issuer must be designated (Article 4-4(2) of 「Foreign Exchange Transactions Regulations」).