Financial Transactions
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).
Withdrawal of Domestic Property
Withdrawal of Domestic Property by Overseas Koreans with Foreign Nationality
- Overseas Koreans with foreign nationality may withdraw funds from Korea only after submitting documents proving the source of the 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 or foreign 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, or social insurance and benefits, pensions or other similar payments from Korea, and the withdrawal is made through a designated foreign exchange bank
4. Withdrawal of consular income and other service fees collected by diplomatic missions in Korea
5. Withdrawal within the scope of sales proceeds under Subparagraph 4 of Article 2-2(1) of 「Foreign Exchange Transactions Regulations」
6. Withdrawal by a non-resident in accordance with the proviso to Article 2-3(4) of 「Foreign Exchange Transactions Regulations」
7. Other withdrawals recognized under Chapters 7 to 9 of 「Foreign Exchange Transactions Regulations」
8. If a non-resident overseas Korean withdraws funds 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, an overseas Korean with foreign nationality may withdraw up to USD 50,000 per year 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」).