FOREIGN EXCHANGE TRANSACTIONS ACT
Act No. 5550, Sep. 16, 1998
Amended by Act No. 6277, Oct. 23, 2000
Act No. 6316, Dec. 29, 2000
Act No. 7716, Dec. 14, 2005
Act No. 8050, Oct. 4, 2006
Act No. 8266, Jan. 26, 2007
Act No. 8635, Aug. 3, 2007
Act No. 8863, Feb. 29, 2008
Act No. 9351, Jan. 30, 2009
Act No. 9374, Jan. 30, 2009
Act No. 9617, Apr. 1, 2009
Act No. 10618, Apr. 30, 2011
Act No. 11407, Mar. 21, 2012
Act No. 14047, Mar. 2, 2016
Act No. 14525, Jan. 17, 2017
CHAPTER I GENERAL PROVISIONS
The purpose of this Act is to contribute to the sound development of the national economy by striving to facilitate foreign transactions, to maintain equilibrium in the balance of payments and to stabilize the value of currency by ensuring liberalization of foreign exchange transactions and of other foreign transactions, and by invigorating market function.
[This Article Wholly Amended by Act No. 9351, Jan. 30, 2009]
| Article 2 (Objects of Application) |
| (1) | This Act shall apply to any of the following matters: |
| 1. | Foreign exchange in the Republic of Korea, foreign exchange transactions conducted therein, or other acts related thereto; |
| 2. | Transactions, payment or receipts between the Republic of Korea and any foreign country, or other acts related thereto (including those which are performed in any foreign country and which have an effect in the Republic of Korea); |
| 3. | Transactions between an individual having a domicile or residence in a foreign country and a legal entity having a main office in a foreign country, which are denominated or payable in the currency of the Republic of Korea, or other acts related thereto; |
| 4. | Acts conducted by an individual having a domicile or residence in the Republic of Korea, or his/her agents, employers or other employees in connection with his/her assets or business in a foreign country; |
| 5. | Acts conducted by a representative, agents, employers or other employees of a legal entity having its main office in the Republic of Korea in connection with assets or business of the legal entity in a foreign country. |
| (2) | The scope of "other acts related thereto" referred to in paragraph (1) 1 through 3 shall be prescribed by Presidential Decree. |
[This Article Wholly Amended by Act No. 9351, Jan. 30, 2009]
| (1) | The definitions of terms used in this Act shall be as follows: <Amended by Act No. 10618, Apr. 30, 2011; Act No. 11407, Mar. 21, 2012> |
| 1. | The term "domestic currency" means won, which is the legal currency of the Republic of Korea; |
| 2. | The term "foreign currency" means any currency other than domestic currency; |
| 3. | The term "means of payment" means those falling under any of the following items: |
| (a) | Government notes, bank notes, coins, checks, postal money orders, or letters of credit; |
| (b) | Bills of exchange, promissory notes and other payment orders as prescribed by Presidential Decree; |
| (c) | Vouchers, plastic cards or other articles in which asset value is embedded by electronic or magnetic means and which may be used for payment among many unspecified persons in lieu of a currency, which are prescribed by Presidential Decree; |
| 4. | The term "means of international payment" means a foreign currency, means of payment denominated in foreign currency, or other means of payment which can be used in a foreign country regardless of currency denomination; |
| 5. | The term "means of domestic payment" means any means of payment other than means of international payment; |
| 6. | The term "precious metals" means gold, gold-alloyed ingots, gold coins not in circulation, or other products and processed goods which are mainly made of gold; |
| 8. | The term "securities in foreign currency" means securities denominated in a foreign currency, or those payable in a foreign country; |
| 10. | The term "derivatives in foreign currency" means derivatives denominated in foreign currency or those which are able to be paid for in a foreign country; |
| 11. | The term "claims" means rights to request for the payment of money, etc. accruing from all kinds of deposits, trusts, guarantees, borrowing and lending, etc. and which do not fall under subparagraphs 1 through 10; |
| 12. | The term "claims in foreign currency" means claims denominated in a foreign currency, or those payable in a foreign country; |
| 13. | The term "foreign exchange" means the means of international payment, securities, derivatives and claims in foreign currency; |
| 14. | The term "resident" means an individual who has a domicile or residence in the Republic of Korea, and a legal entity whose main office is located in the Republic of Korea; |
| 15. | The term "non-resident" means an individual and a legal entity other than residents: Provided, That branch offices, local offices or other offices of non-residents located in the Republic of Korea, shall be deemed residents regardless of whether such offices, etc. have legal authority to act as an agent thereof; |
| 16. | The term "foreign exchange affairs" means those referred to in any of the following items: |
| (a) | Issuance or dealing of foreign exchange; |
| (b) | Payment, collection and receipt between the Republic of Korea and a foreign country; |
| (c) | Deposits, borrowing and lending of money, or guarantee with residents which is denominated in or paid for in a foreign currency; |
| (d) | Deposits, borrowing and lending of money or guarantee with nonresidents; |
| (e) | Other affairs similar to those provided in items (a) through (d) and which are prescribed by Presidential Decree; |
| 18. | The term "overseas direct investment" means any transactions, acts or payments by residents, which fall under any of the following items: |
| (a) | Transactions or acts performed to establish continuous economic relations with a legal entity incorporated under the Acts and subordinate statutes of a foreign country (including a legal entity in the process of its incorporation) by acquiring securities issued by such legal entity or lending money to such legal entity, and which are prescribed by Presidential Decree; |
| (b) | Disbursement of funds to establish, expand or operate business offices in a foreign country or to conduct overseas business activities, and which is prescribed by Presidential Decree; |
| 19. | The term "capital transactions" means any transactions or acts falling under any of the following items: |
| (a) | Transactions (limited to cases relevant to foreign exchange for a transaction between residents) related to the creation, alteration or extinction of claims due to contracts for deposits, trust, borrowing and lending of money, debt guarantees, or buying and selling of the means of international payment, claims, etc. (excluding transactions as referred to in item (c) ); |
| (b) | Issuance of, subscription to securities, and acquisition of securities or rights thereto (excluding cases falling under item (c), and limited to cases relevant to foreign exchange for a transaction between residents); |
| (c) | Transactions of derivatives (limited to cases relevant to foreign exchange for a transaction of derivatives between residents); |
| (d) | Acquisition of real estate in a foreign country or any rights related thereto by residents, or acquisition of real estate in the Republic of Korea or any rights related thereto by non-residents; |
| (e) | Acts performed between a legal entity’s head office, branch offices, local offices or other offices located in the Republic of Korea (hereafter referred to as the "offices" in this item) and offices located in a foreign country in connection with establishment, expansion, operation, etc., of such offices and giving and receiving of funds in relation therewith, with the exception of cases referred to in item (a) (excluding giving and receiving of funds relevant to expenses incurred in maintaining offices and ordinary transactions and which are prescribed by Presidential Decree); |
| (f) | Other transactions or acts similar to those referred to in items (a) through (e), and which are prescribed by Presidential Decree; |
| 20. | The term "non-deposit liabilities in foreign currency, etc." means a financial company, etc.'s liabilities denominated in a foreign currency (excluding deposits in foreign currency) and others that are similar thereto and prescribed by Presidential Decree. |
| (2) | Where the distinction between a resident and a non-resident referred to in paragraph (1) 14 and 15 is unclear, such distinction shall be as prescribed by Presidential Decree. |
[This Article Wholly Amended by Act No. 9351, Jan. 30, 2009]
| Article 4 (Striving, etc. for Facilitation of Foreign Transactions) |
| (1) | The Minister of Strategy and Finance shall strive to facilitate foreign exchange transactions and other foreign transactions by imposing restrictions under this Act to the minimum necessary extent. |
| (2) | The Minister of Strategy and Finance shall endeavor to create a foundation for stable supply and demand for foreign exchange and to stabilize the foreign exchange market, and shall formulate policies therefor. |
[This Article Wholly Amended by Act No. 9351, Jan. 30, 2009]
| Article 5 (Exchange Rates) |
| (1) | The Minister of Strategy and Finance may determine the basic exchange rate, purchase and sale rate of foreign exchange, and arbitrated rate of exchange (hereinafter referred to as the "basic exchange rate, etc.") in foreign exchange transactions, if it is necessary for harmonious and orderly foreign exchange transactions. |
| (2) | If the Minister of Strategy and Finance has determined the basic exchange rate, etc. pursuant to paragraph (1), residents and non-residents shall perform transactions in conformity with such basic exchange rate, etc. |
[This Article Wholly Amended by Act No. 9351, Jan. 30, 2009]
| Article 6 (Suspension, etc. of Foreign Exchange Transactions) |
| (1) | The Minister of Strategy and Finance may, pursuant to Presidential Decree, take measures falling under any of the following subparagraphs, if such measures are deemed inevitable due to natural calamities, war, conflicts of arms, grave and sudden changes in domestic and foreign economic conditions, or other situations equivalent thereto: <Amended by Act No. 10618, Apr. 30, 2011; Act No. 14525, Jan. 17, 2017> |
| 1. | Temporary suspension, in whole or in part, of payment, receipt, or transactions to which this Act applies; |
| 2. | Imposition of obligations to safekeep, deposit or sell means of payment or precious metals in or to the Bank of Korea, government agencies, the foreign exchange equalization fund, or financial companies, etc.; |
| 3. | Imposition of obligation to residents holding claims against non-residents to collect the claims back to the Republic of Korea. |
| (2) | Where it is deemed to fall under any of the following subparagraphs, the Minister of Strategy and Finance may, pursuant to Presidential Decree, take measures to impose on any person intending to carry out capital transactions an obligation to obtain permission, or any person performing capital transactions an obligation to deposit part of means of payment acquired in connection with such transactions in the Bank of Korea, the foreign exchange equalization fund or financial companies, etc.: <Amended by Act No. 10618, Apr. 30, 2011> |
| 1. | Where balance of payments and international finance are confronted or are liable to be confronted with serious difficulty; |
| 2. | Where the movement of capital between the Republic of Korea and a foreign country creates or is liable to create serious obstacles in carrying out currency policies, exchange rate policies and other macroeconomic policies. |
| (3) | Measures provided for in paragraphs (1) and (2) may be taken for a period not exceeding six months unless there exist special grounds to the contrary, and if reasons for such measures cease to exist, such measures shall be cancelled without delay. |
| (5) | Where necessary to take the measures prescribed in paragraph (1) 3, the Minister of Strategy and Finance may request the head of the tax office having jurisdiction over the relevant resident to provide information on his/her overseas financial accounts under Article 34 of the Adjustment of International Taxes Act. In such cases, the head of the tax office in receipt of the request to provide information on overseas financial accounts shall comply with such request except in extenuating circumstances. <Newly Inserted by Act No. 14525, Jan. 17, 2017> |
[This Article Wholly Amended by Act No. 9351, Jan. 30, 2009]
| Article 7 Deleted. <by Act No. 14525, Jan. 17, 2017> |
CHAPTER II FOREIGN EXCHANGE AGENCIES, ETC.
| Article 8 (Registration, etc. of Foreign Exchange Business) |
| (1) | Any person who intends to engage in a foreign exchange affair shall prepare capital, facilities and professional human resources sufficient to conduct such affair and register it as business with the Minister of Strategy and Finance in advance, as prescribed by Presidential Decree: Provided, That this shall not apply to any financial company, etc., for which the Minister of Strategy and Finance deems such registration unnecessary taking into account the details of such business, and which is prescribed by Presidential Decree. <Amended by Act No. 10618, Apr. 30, 2011> |
| (2) | Only financial companies, etc. are entitled to engage in a foreign exchange business, and a financial company, etc. engaging in a foreign exchange affair may conduct such foreign exchange affair insofar as it is directly related to the business of the financial company, etc., as prescribed by Presidential Decree. <Amended by Act No. 10618, Apr. 30, 2011> |
| (3) | Notwithstanding paragraphs (1) and (2), where a person who is not a financial company, etc. intends to engage in any of the following foreign exchange as a business, he/she shall be registered with the Minister of Strategy and Finance in advance after fulfilling the requirements prescribed by Presidential Decree, such as the capital, facilities and professional human resources necessary for the relevant business. In such cases, detailed scope of foreign exchange, including the scale and methods thereof, and the criteria for ensuring the safety shall be prescribed by Presidential Decree: <Amended by Act No. 14525, Jan. 17, 2017> |
| 1. | Purchase or sale of foreign currencies, and purchase of traveler's checks issued in a foreign country; |
| 2. | Payment or receipt of funds between the Republic of Korea and a foreign country, and the purchase or sale of foreign currencies incidental thereto; |
| 3. | Other foreign exchange affairs prescribed by Presidential Decree as deemed necessary to improve convenience of foreign exchange transactions. |
| (4) | If any financial company, etc. which has registered its foreign exchange affairs pursuant to the main sentence of paragraph (1) and any person who has registered its foreign exchange affairs pursuant to paragraph (3) (hereinafter referred to as "specialized foreign exchange dealer") intends to modify any of the registered matters prescribed by Presidential Decree or to discontinue the foreign exchange affairs, they shall file a prior report thereof with the Minister of Strategy and Finance, as prescribed by Presidential Decree. <Amended by Act No. 10618, Apr. 30, 2011; Act No. 14525, Jan. 17, 2017> |
| (5) | Any financial company, etc. which has registered its foreign exchange business pursuant to paragraph (1) (including any financial company, etc. pursuant to the proviso to paragraph (1); hereinafter referred to as "foreign exchange agency"), shall obtain authorization of the Minister of Strategy and Finance in concluding a contract concerning business subject to application of this Act with foreign financial institutions, if such authorization is prescribed by Presidential Decree as it is deemed necessary for the sound development of the national economy and maintenance of international peace and security, etc. <Amended by Act No. 10618, Apr. 30, 2011> |
| (6) | Matters necessary to conduct the business of foreign exchange agency and specialized foreign exchange dealer shall be prescribed by Presidential Decree. <Amended by Act No. 14525, Jan. 17, 2017> |
| (7) | For the purposes of faithful performance of foreign exchange affairs, the Minister of Strategy and Finance may require each person registered pursuant to paragraph (3) to take measures as prescribed by Presidential Decree, such as depositing a bond in an institution designated by the Minister of Strategy and Finance or purchasing an insurance policy or joining a mutual aid program. <Newly Inserted by Act No. 14525, Jan. 17, 2017> |
[This Article Wholly Amended by Act No. 9351, Jan. 30, 2009]
| Article 9 (Foreign Exchange Brokerage, etc.) |
| (1) | Any person who intends to engage in a business in the following subparagraphs (hereinafter referred to as "foreign exchange brokerage") shall prepare capital, facilities and professional human resources as prescribed by Presidential Decree and shall obtain authorization of the Minister of Strategy and Finance. In such cases, when such person intends to modify any important matters determined by Presidential Decree among the authorized matters, he/she shall file a report thereon with the Minister of Strategy and Finance: |
| 1. | Brokerage of buying, selling, exchanging and lending of foreign currencies; |
| 2. | Brokerage of derivative transactions whose underlying assets are foreign currencies; |
| 3. | Other business relating to subparagraphs 1 and 2. |
| (2) | Counterparts with whom the person authorized to conduct foreign exchange brokerage under paragraph (1) (hereinafter referred to as the "foreign exchange brokerage company") may conduct foreign exchange brokerage business shall be a person prescribed by Presidential Decree, such as financial company, etc. and related institutions having expertise in transactions of foreign exchange. <Amended by Act No. 10618, Apr. 30, 2011> |
| (3) | Where a foreign exchange brokerage company intends to conduct any act falling under any of the following subparagraphs, it shall obtain authorization of the Minister of Strategy and Finance according to the classification determined by Presidential Decree or file a report with the Minister of Strategy and Finance: |
| 1. | Merger or dissolution; |
| 2. | Discontinuation, transfer or takeover of all or part of its business. |
| (4) | For the purposes of faithful performance of foreign exchange brokerage business, the Minister of Strategy and Finance may, pursuant to Presidential Decree, require each foreign exchange brokerage company to deposit a bond in an institution designated by him/her. |
| (5) | If foreign exchange brokerage companies intend to conduct foreign exchange brokerage business in a foreign country, they shall obtain authorization of the Minister of Strategy and Finance, as prescribed by Presidential Decree. |
| (6) | The Financial Investment Services and Capital Markets Act shall not apply to foreign exchange brokerage business under this Act: Provided, That Articles 37, 39, 44 and 54 of the same Act and other provisions of the said Act may apply mutatis mutandis as prescribed by Presidential Decree for the protection of investors. In such cases, "financial investment trader" shall be deemed "foreign exchange brokerage company", and "financial investment business" shall be deemed "foreign exchange brokerage". |
| (7) | Matters necessary for foreign exchange brokerage companies to perform their business, other than those provided in paragraphs (1) through (6), shall be prescribed by Presidential Decree. |
[This Article Wholly Amended by Act No. 9351, Jan. 30, 2009]
| Article 10 (Obligations in Performing Duties) |
| (1) | When a foreign exchange agency, a specialized foreign exchange dealer, and a foreign exchange brokerage company (hereinafter referred to as the "foreign exchange agency, etc.") make transactions subject hereto with their customers, it shall confirm whether transactions, payments or receipts of their customers are permitted or reported under this Acts: Provided, That this shall not apply to cases determined and publicly notified by the Minister of Strategy and Finance to stabilize supply and demand for foreign exchange and to facilitate foreign transactions. <Amended by Act No. 14525, Jan. 17, 2017> |
| (2) | No foreign exchange agency, etc. shall conduct any of the following acts to gain unfair profit or to make a third party gain unfair profit in connection with foreign exchange affairs: <Newly Inserted by Act No. 14525, Jan. 17, 2017> |
| 1. | An act of changing or fixing the market price of any foreign exchange; |
| 2. | An act similar to the one prescribed in subparagraph 1, which undermines sound transaction order prescribed by Presidential Decree. |
[This Article Wholly Amended by Act No. 9351, Jan. 30, 2009]
| Article 11 (Supervision of Business and Regulation of Soundness, etc. ) |
| (1) | The Minister of Strategy and Finance may supervise business of a foreign exchange agency, etc. (including its business office located in a foreign country; hereafter the same shall apply in this Article), and may issue orders necessary for such supervision. |
| (2) | Where it is deemed necessary for maintaining stability in the foreign exchange market and soundness of foreign exchange agencies, etc., the Minister of Strategy and Finance may impose necessary restrictions on the raising and operation of foreign currency, such as determining the asset-liability ratio of foreign currency by foreign exchange agencies, etc. In such cases, detailed standards for such restrictions shall be prescribed by Presidential Decree. |
[This Article Wholly Amended by Act No. 9351, Jan. 30, 2009]
| Article 11-2 (Macro-Prudential Stability Levies) |
| (1) | The Minister of Strategy and Finance may impose and collect a macro-prudential instability levy (hereafter referred to as "levies" in this Article and Article 11-3) on/from a financial company, etc. prescribed by Presidential Decree in full consideration of the roles of the financial company, etc. in the financial markets, its foreign exchange affairs, the scale of liabilities denominated in a foreign currency and other related matters in order to minimize instability in the financial markets following sudden inflows and outflows of foreign capital and to ensure the sound development of the national economy. |
| (2) | Levies to be imposed and collected pursuant to paragraph (1) shall be an amount calculated by multiplying the balance of non-deposit liabilities in foreign currency, etc. by an imposition rate prescribed by Presidential Decree within the ceiling of 5/1,000 in consideration of the business areas of a financial company, etc., the maturity of non-deposit liabilities in foreign currency, etc. and other related matters. |
| (3) | Notwithstanding paragraph (2), where the Minister of Strategy and Finance deems that instability in the international financial markets, the sudden outflows or inflows of foreign capital, etc., are likely to substantially undermine the stability of the domestic financial markets and the national economy, he/she may impose and collect any of the following amount as levies with fixing a period not exceeding six months: <Amended by Act No. 14525, Jan. 17, 2017> |
| 1. | An amount calculated by multiplying the balance of the non-deposit liabilities in foreign currency, etc. by an imposition rate which is lowered and publicly notified by the Minister of Strategy and Finance in lieu of the imposition rate prescribed in paragraph (2) for the relevant period; |
| 2. | An amount calculated by applying an imposition rate which is determined at a rate higher than that prescribed in paragraph (2) and publicly notified by the Minister of Strategy and Finance (hereafter referred to as "additional imposition rate" in this paragraph), in addition to the levies calculated pursuant to paragraph (2) with regard to the increased portion in the balance of the non-deposit liabilities in foreign currency, etc. for the relevant period. In such cases, the additional imposition rate shall not exceed 10/1,000 after summing up the imposition rate prescribed in paragraph (2). |
| (4) | Levies collected under paragraph (1) shall revert to the foreign exchange equalization fund pursuant to Article 13 (1). |
| (5) | Methods of calculating the balance of the non-deposit liabilities in foreign currency, etc. under paragraph (2) and an increase in the balance of the non-deposit liabilities foreign currency, etc. under paragraph (3), and other necessary matters for the imposition of levies shall be prescribed by Presidential Decree. |
[This Article Newly Inserted by Act No. 10618, Apr. 30, 2011]
| Article 11-3 (Collection of Levies and Filing Objections) |
| (1) | The Minister of Strategy and Finance may permit a financial company, etc. to pay levies it is liable to pay in installments, as prescribed by Presidential Decree. |
| (2) | When a financial company, etc. fails to pay the levies by the payment deadline, the Minister of Strategy and Finance shall issue a reminder specifying a period of at least ten days within ten days after the payment deadline expires. |
| (3) | The Minister of Strategy and Finance may collect a surcharge prescribed by Presidential Decree within the extent of 10/100 of the levies in arrears. |
| (4) | When a financial company, etc. to whom a reminder is issued under paragraph (2) fails to make a payment by the specified deadline, the Minister of Strategy and Finance shall collect the levies and surcharges by referring to the practices of dispositions on default of national taxes. |
| (5) | Where the Minister of Strategy and Finance deems it necessary for imposing and collecting the levies pursuant to Article 11-2, he/she may request the relevant financial company, etc. to submit relevant data. In such cases, the financial company, etc. that is requested to submit data shall comply therewith unless extenuating circumstances exist. |
| (6) | Where a financial company, etc. on whom levies are imposed pursuant to Article 11-2 has an objection about such imposition, it may file an objection with the Minister of Strategy and Finance. |
| (7) | Other necessary matters for the collection of levies, filing objections, etc. shall be prescribed by Presidential Decree. |
[This Article Newly Inserted by Act No. 10618, Apr. 30, 2011]
| Article 12 (Revocation, etc. of Authorization) |
| (1) | Where a foreign exchange agency, etc. falls under any of the following subparagraphs, the Minister of Strategy and Finance may revoke a registration or authorization prescribed in Articles 8 and 9, or may restrict the business of foreign exchange agency, etc. (including their business offices) or may suspend, in whole or in part, business thereof for a period up to six months: <Amended by Act No. 14525, Jan. 17, 2017> |
| 1. | Where the agency, etc. has registered or obtained authorization by fraud or other improper means; |
| 2. | Where the agency, etc. has conducted business during the period of business restriction or suspension; |
| 3. | Where the agency, etc. has violated the details or terms of registration or authorization; |
| 4. | Where the agency, etc. has conducted foreign exchange affairs, etc. in violation of Article 8 (2); |
| 5. | Where the agency, etc. has failed to obtain authorization or to file a report or has filed a false report in accordance with Article 8 (4) or 9 (3); |
| 5-2. | Where the agency, etc. has failed to comply with matters necessary to perform the business of foreign exchange agency and specialized foreign exchange dealer pursuant to Article 8 (6); |
| 5-3. | Where the agency, etc. has failed to comply with necessary measures, such as the deposit of bond under Article 8 (7); |
| 5-4. | Where any cause for a possibility of bankruptcy or insolvency of a specialized foreign exchange dealer occurs, despite the measures taken under Article 8 (7); |
| 6. | Where the agency, etc. has conducted a transaction in violation of Article 9 (2) or has not complied with an order to deposit a bond under paragraph (4) of the same Article; |
| 7. | Where the agency, etc. has failed to fulfil its obligation prescribed in Article 10; |
| 8. | Where the agency, etc. has failed to comply with a supervisory order prescribed in Article 11 (1) or restrictions on business prescribed in paragraph (2) of the same Article; |
| 9. | Where the agency, etc. has failed to file a report or to submit data or information prescribed in Article 20 (1) or (2), or has filed a false report, or submitted false data or information; |
| 10. | Where the agency, etc. has failed to comply with inspections prescribed in Article 20 (3) or (6) or has refused, obstructed or evaded such inspections; |
| 11. | Where the agency, etc. has refused to submit data prescribed in Article 20 (4) or (6) or has submitted false data; |
| 12. | Where the agency, etc. has not complied with an order of correction under Article 20 (5) or (6); |
| 13. | Where the agency, etc. has failed to give a notice or provide materials in violation of an order of the Minister of Strategy and Finance under Article 21, or has give a false notice or provided false materials; |
| 14. | Where the agency, etc. has failed to make a statement, an application and report, and notification and presentation of materials by means of electronic document in violation of an order of the Minister of Strategy and Finance under Article 24 (2). |
| (2) | Deleted. <by Act No. 14525, Jan. 17, 2017> |
| (3) | The Minister of Strategy and Finance shall, when he/she intends to revoke any registration or authorization pursuant to paragraph (1), hold a hearing. |
| (4) | A person whose registration or authorization is revoked pursuant to paragraph (1) (including any person directly responsible for the occurrence of the grounds for the revocation or a person who bears corresponding responsibility, as a former executive officer or employee of the person whose registration or authorization has been revoked pursuant to paragraph (1)), shall not be allowed to register the relevant foreign exchange affairs again under Article 8 (1) or (3) or to obtain authorization again under Article 9 (1) unless three years lapse from the date of revocation of the registration or authorization. <Newly Inserted by Act No. 14525, Jan. 17, 2017> |
| (5) | Detailed standards for dispositions under paragraph (1) shall be prescribed by Presidential Decree. |
[This Article Wholly Amended by Act No. 9351, Jan. 30, 2009]
| Article 12-2 (Penalty Surcharges) |
| (1) | Where the Minister of Strategy and Finance is to limit or suspend all or part of the business of a person who has committed a violation falling under any of the subparagraphs of Article 12 (1), he/she may impose a penalty surcharge in lieu thereof, within the extent of interests gained from the violation. |
| (2) | Where a penalty surcharge is imposed under paragraph (1), matters in the following subparagraphs shall be considered according to the standards prescribed by Presidential Decree: |
| 1. | Details and severity of violation; |
| 2. | Period and frequency of violation; |
| 3. | Amount of benefits gained from violation. |
| (3) | Imposition of penalty surcharges, extension of deadline for the payment of penalty surcharges, payments in installments, guarantees, and other matters necessary for the collection of penalty surcharges shall be prescribed by Presidential Decree. |
| (4) | Where a person obliged to pay a penalty surcharge fails to pay it by the payment deadline, the Minister of Strategy and Finance may collect it pursuant to the precedents of disposition of national taxes in arrears. |
[This Article Newly Inserted by Act No. 9351, Jan. 30, 2009]
CHAPTER III FOREIGN EXCHANGE EQUALIZATION FUND
| Article 13 (Foreign Exchange Equalization Fund) |
| (2) | The foreign exchange equalization fund shall be funded with the financial resources listed in the following subparagraphs: <Amended by Act No. 10618, Apr. 30, 2011> |
| 1. | Contributions and withholdings from the Government; |
| 2. | Money raised by issuing foreign exchange equalization fund bonds; |
| 3. | Withholdings or temporary loans from any foreign government, any foreign central bank, or other residents or non-residents; |
| 4. | Withholdings under Article 6 (1) 2 and (2); |
| 6. | Other funds prescribed by Presidential Decree including those necessary to facilitate foreign exchange transactions. |
| (3) | The foreign exchange equalization fund shall be operated by the methods listed in the following subparagraphs: Provided, That the foreign exchange equalization fund raised with the macro-prudential stability levies and surcharges under paragraph (2) 5 shall be managed only in the method referred to in subparagraph 2 or for transactions to provide a financial company, etc. with foreign currency liquidity, from among the methods referred to in subparagraph 4: <Amended by Act No. 10618, Apr. 30, 2011> |
| 1. | Foreign exchange dealing; |
| 2. | Deposit in or lending to the Bank of Korea, any foreign government, any foreign central bank, or any domestic or foreign financial company, etc.; |
| 3. | Payment temporarily made on behalf of the State before the State makes payment with reserve funds or revised supplementary budgets for the purpose of the redemption of foreign currency debts of a foreign exchange agency guaranteed by the State; |
| 4. | Other methods deemed necessary for facilitation of foreign exchange transactions and which are prescribed by Presidential Decree. |
| (4) | If debts are paid by the foreign exchange equalization fund on behalf of the State pursuant to paragraph (3) 3, the Government shall take measures to replenish for such payment. |
| (5) | Financing and operation of the foreign exchange equalization fund as provided for in paragraphs (2) and (3), may be made with either the means of domestic payment or the means of international payment. |
| (6) | The foreign exchange equalization fund shall be operated and managed by the Minister of Strategy and Finance. |
| (7) | The Minister of Strategy and Finance may issue foreign exchange equalization fund bonds. |
| (8) | Matters concerning for the operation and management of the foreign exchange equalization fund, interest payable on withholdings, issuance of foreign exchange equalization fund bonds, etc., shall be prescribed by Presidential Decree. |
| (9) | The Minister of Strategy and Finance may, as prescribed by Presidential Decree, issue a certificate of deposit for the funds deposited in the foreign exchange equalization fund under paragraph (2). In such cases, the Minister of Strategy and Finance may determine the purpose of use of such certificates of deposit. |
| (11) | Where any change in the issuance amount of foreign exchange equalization fund bonds denominated in a foreign currency exceeds 2/10 of the issuance amount of a foreign exchange equalization fund bonds denominated in a foreign currency according to the operation plan of the foreign exchange equalization fund for the corresponding fiscal year, the Minister of Strategy and Finance shall submit details of such change to the competent Standing Committee and the Special Committee on Budget and Accounts of the National Assembly. In such cases, such details of change shall contain the detail of issuance and redemption of foreign exchange equalization fund bonds, reasons for the change, etc. |
| (12) | The Minister of Strategy and Finance shall keep a separate account of the macro-prudential stability levies and surcharges under paragraph (2) 5 from other financial resources for the foreign exchange equalization fund, as prescribed by Presidential Decree. <Newly Inserted by Act No. 10618, Apr. 30, 2011> |
[This Article Wholly Amended by Act No. 9351, Jan. 30, 2009]
| Article 14 (Redemption of Principal and Interest of Foreign Exchange Equalization Fund Bonds) |
| (1) | The principal and interest on foreign exchange equalization fund bonds issued may be redeemed with the net surplus budget of the general accounts in accordance with the procedures prescribed in Article 90 (6) of the National Finance Act. |
| (2) | The amount redeemable with the net surplus budget of the general accounts under paragraph (1) shall be an amount calculated by adding or subtracting any profit and loss resulted from operation of the foreign exchange equalization fund, other than interest accruing from foreign exchange equalization fund bonds, to or from such interest. |
[This Article Wholly Amended by Act No. 9351, Jan. 30, 2009]
CHAPTER IV PAYMENTS AND TRANSACTIONS
| Article 15 (Payment Procedures, etc.) |
| (1) | The Minister of Strategy and Finance may determine necessary matters such as procedures for money exchange, remittance and transference of property in connection to payments or receipts subject to application of this Act. |
| (2) | Where it is deemed to fall under any of the following subparagraphs, the Minister of Strategy and Finance may require residents and nonresidents who intend to make payment from Korea to a foreign country, or residents who intend to make payment to non-residents or to receive payment from non-residents, obtain permission as prescribed by Presidential Decree when they pay or receive as such: |
| 1. | Where it is inevitable for the faithful fulfillment of treaties concluded by the Republic of Korea, and of generally recognized international laws and regulations; |
| 2. | Where it is necessary for especially contributing to international endeavor for the maintenance of international peace and security. |
[This Article Wholly Amended by Act No. 9351, Jan. 30, 2009]
| Article 16 (Reporting on Methods of Payment or Receipt) |
Where a resident falls under any of the following subparagraphs in settling any claim or liabilities arising from transactions or acts between residents, between a resident and a non-resident or between non-residents (excluding cases where a person who has filed a report under Article 18 pays or receives money in conformity with the method reported), he/she shall report, in advance, on the method of such payment or receipt to the Minister of Strategy and Finance as prescribed by Presidential Decree: Provided, That in cases of transactions prescribed by Presidential Decree for the stabilization of supply and demand for foreign exchange and for the facilitation of foreign transactions, an ex post facto report may be made or a report may be omitted: <Amended by Act No. 14525, Jan. 17, 2017> | 1. | Where he/she makes any settlement by extinguishing or offsetting a claim or liabilities by means of balancing, etc.; |
| 2. | Where he/she makes any settlement after the period set by the Minister of Strategy and Finance; |
| 3. | Where a resident pays or receives money to or from a person who is not a party to the transaction in question, or a resident who is not a party to the transaction in question pays or receives money to or from a non-resident who is a party thereto; |
| 4. | Where a resident pays or receives money without going through a foreign exchange agency, etc. |
[This Article Wholly Amended by Act No. 9351, Jan. 30, 2009]
| Article 17 (Reporting on Export and Import of Means of Payment, etc. ) |
The Minister of Strategy and Finance may require a resident or non-resident who intends to export or import any means of payment or securities to file a report as prescribed by Presidential Decree when he/she exports or imports such means of payment or securities where such report is deemed necessary to ensure effectiveness of this Act, and is prescribed by Presidential Decree to ensure the effectiveness of this Act,
[This Article Wholly Amended by Act No. 9351, Jan. 30, 2009]
| Article 18 (Reporting, etc. on Capital Transactions) |
| (1) | Any person who intends to perform capital transactions, shall file a report on such capital transactions with the Minister of Strategy and Finance pursuant to Presidential Decree: Provided, That in cases of capital transactions prescribed by Presidential Decree for the stabilization of supply and demand for foreign exchange and the facilitation of foreign transactions, an ex post facto report may be made or a report may be omitted. <Amended by Act No. 14525, Jan. 17, 2017> |
| (2) | The report under paragraph (1) and acceptance of report under paragraph (3) shall be completed prior to the procedures under Article 15 (1). |
| (3) | With respect to overseas direct investment, acquisition of overseas real estate or any right thereto by a resident from among the matters to be reported under paragraph (1), the Minister of Strategy and Finance may examine the feasibility thereof, such as whether an investor is qualified and the amount of investment is reasonable, and determine whether to accept such report. |
| (4) | With respect to each report under paragraph (3), the Minister of Strategy and Finance shall make a determination falling under any of the following subparagraphs and notify the person who has filed the report of such determination within the processing period prescribed by Presidential Decree: |
| 1. | Acceptance of a report; |
| 2. | Refusal to accept a report; |
| 3. | Recommendation to modify the details of transactions. |
| (5) | Where the Minister of Strategy and Finance has made a determination under paragraph (4) 2, the resident who has filed the relevant report shall not conduct the transaction in question. |
| (6) | Where a person who has received a notice of recommendation under paragraph (4) 3 accepts the recommendation, he/she may conduct the transaction in question as he/she has accepted it, and shall not conduct the transaction in question in cases where he/she has not accepted it. |
| (7) | If no notice is made by the Minister of Strategy and Finance within the processing period under paragraph (4), the report in question shall be deemed to have been accepted on the date on which the period expires. |
[This Article Wholly Amended by Act No. 9351, Jan. 30, 2009]
CHAPTER V SUPPLEMENTARY PROVISIONS
| Article 19 (Warnings, Suspension of Transactions, etc.) |
| (1) | In cases where a person to whom this Act is applied falls under any of the following subparagraphs, the Minister of Strategy and Finance may issue him/her a warning: |
| 1. | Where he/she has conducted a transaction or an act after the expiration of deadline set in the terms of permission or report in cases where he/she obtained permission or filed a report under the provisions of Articles 15 through 18; |
| 2. | Where he/she has conducted a transaction or an act in violation of obligations to comply with the procedures, or to obtain permission or file a report (hereinafter referred to as "report, etc.") under the provisions of Articles 15 through 18, which is a transaction or an act with an amount not exceeding the amount (which may be set differently according to the type of transaction or act) prescribed by Presidential Decree. |
| (2) | In cases where any transaction or an act by a person who is subject to the application of this Act has violated the obligations to report, etc. under Articles 15 through 18 not less than twice for the latest five years, the Minister of Strategy and Finance may restrict or suspend relevant foreign exchange transactions or act, or revoke permission therefor for a period of not more than one year for each act of violation. <Amended by Act No. 14525, Jan. 17, 2017> |
| (3) | In cases where the Minister of Strategy and Finance takes any measures under paragraph (2), he/she shall hold a hearing. |
| (4) | Matters necessary for measures under paragraph (1) or (2) shall be prescribed by Presidential Decree. |
[This Article Wholly Amended by Act No. 9351, Jan. 30, 2009]
| Article 20 (Reporting and Inspections) |
| (1) | The Minister of Strategy and Finance may have a party to a transaction or interested persons make a necessary report to secure effectiveness of this Act, and may have the residents holding claims against non-residents make a report on the status of such claim in possession as prescribed by Presidential Decree. |
| (2) | The Minister of Strategy and Finance may request the heads of relevant agencies to whom this Act is applicable, including the National Tax Service, the Bank of Korea, the Financial Supervisory Service, a foreign exchange agency, etc., to submit related data or information where it is deemed necessary for the enforcement of this Act. In such cases, the heads of relevant agencies shall comply with such requests unless there exists a special reason to the contrary. <Amended by Act No. 14525, Jan. 17, 2017> |
| (3) | The Minister of Strategy and Finance may have public officials under his/her control inspect business of a foreign exchange agency, etc. and any parties to transactions to which this Act applies or interested persons therein, if it is deemed necessary for the enforcement of this Act. |
| (4) | The Minister of Strategy and Finance may require a foreign exchange agency, etc. and any parties to transactions to which this Act applies or interested persons therein to submit data related to their business and assets, if it is deemed necessary for efficient inspections. |
| (5) | If any illegal act is found as a result of inspections under paragraph (3), the Minister of Strategy and Finance may give a corrective order, or may take other necessary measures. |
| (6) | The Minister of Strategy and Finance may, pursuant to Presidential Decree, entrust the Governor of the Bank of Korea, the Governor of the Financial Supervisory Service or other persons prescribed by Presidential Decree with such business provided for in paragraphs (3) through (5) and have any employees under their control conduct such business, if it is deemed necessary to do so. |
| (7) | Any person who performs inspections under paragraphs (3) through (6), shall carry a certificate indicating his/her authority, and produce it to relevant persons. |
[This Article Wholly Amended by Act No. 9351, Jan. 30, 2009]
| Article 21 (Notification, etc. to Commissioner of National Tax Service, etc. ) |
| (1) | Notwithstanding other Acts, the Minister of Strategy and Finance may directly notify the Commissioner of the National Tax Service, the Commissioner of the Korea Customs Service, the Governor of the Financial Supervisory Service or the President of the Export-Import Bank of Korea of data on transaction, payment, receipt, flow of funds, etc. to which this Act applies, or may have the Governor of the Bank of Korea, heads of foreign exchange agencies, etc., heads of customhouses or other persons prescribed by Presidential Decree notify the Commissioner of the National Tax Service, the Commissioner of the Korea Customs Service, the Governor of the Financial Supervisory Service or the President of the Export-Import Bank of Korea thereof. |
| (2) | The Minister of Strategy and Finance may have persons prescribed by Presidential Decree supply data on the transaction, payment, receipt, flow of funds, etc. to which this Act applies to credit information concentration agencies under Article 25 of the Credit Information Use and Protection Act. <Amended by Act No. 9617, Apr. 1, 2009> |
[This Article Wholly Amended by Act No. 9351, Jan. 30, 2009]
| Article 22 (Confidentiality of Foreign Exchange Transactions) |
No person engaged in such business as permission, authorization, registration, report, statement, notification, brokerage, relay, concentration, exchange, etc. prescribed in this Act, shall use any information which he/she has acquired in connection with such business for purposes other than those prescribed in this Act, nor divulge such information to other persons, except as otherwise prescribed in Article 4 of the Act on Real Name Financial Transactions and Confidentiality. [This Article Wholly Amended by Act No. 9351, Jan. 30, 2009]
| Article 23 (Delegation, Entrustment, etc. of Authority) |
| (1) | The Minister of Strategy and Finance may, pursuant to Presidential Decree, delegate or entrust part of his/her authority under this Act to the Financial Services Commission, the Securities Futures Commission, the heads of the administrative agencies concerned, the Governor of the Bank of Korea, the Governor of the Financial Supervisory Service, the heads of foreign exchange agencies, etc., or other persons prescribed by Presidential Decree. |
| (2) | Any person in charge of the business prescribed in paragraph (1) and Article 20 (6), and any executive officer or employee under his/her control (excluding a public official, and a person who is deemed to be a public official by other Acts), shall be deemed a public official in the application of the penal provisions under the Criminal Act or other Acts. |
[This Article Wholly Amended by Act No. 9351, Jan. 30, 2009]
| Article 24 (Permission, etc. by Electronic Documents) |
| (1) | The Minister of Strategy and Finance may grant permission and authorization or give notices or notification under this Act by means of electronic documents (including presentation of data by means of computer networks or electronic data processing systems; hereafter the same shall apply in this Article), as prescribed by Presidential Decree. |
| (2) | The Minister of Strategy and Finance may order a foreign exchange agency, etc., other parties to transactions or interested parties to whom this Act applies to file a report, an application or statement or to notify and submit information, by means of electronic documents, if it is deemed necessary for securing effectiveness of this Act. |
[This Article Wholly Amended by Act No. 9351, Jan. 30, 2009]
| Article 25 (Management of Administrative Affairs etc.) |
| (1) | The Minister of Strategy and Finance may determine procedures for the management of administrative affairs, payments or receipts, and other necessary matters, if it is deemed necessary for ensuring efficient operation and effectiveness of this Act. |
| (2) | The Minister of Strategy and Finance may designate one or more legal entity or organization which is related to or specializes in the foreign exchange business, as an institution to relay, concentrate, exchange or analyze data on foreign exchange transactions, payments or receipts. |
[This Article Wholly Amended by Act No. 9351, Jan. 30, 2009]
| Article 26 (Relationship with Other Acts) |
[This Article Wholly Amended by Act No. 9351, Jan. 30, 2009]
CHAPTER VI PENALTY PROVISIONS
| Article 27 (Penalty Provisions) |
| (1) | Any of the following persons shall be punished by imprisonment with labor for not more than five years or by a fine not exceeding five hundred million won: Provided, That where the triple value of the object related to the violation exceeds five hundred million won, the fine shall not be more than the triple value of such object: <Amended by Act No. 14525, Jan. 17, 2017> |
| 1. | Any person who conducts transactions in non-compliance with the basic exchange rate, etc. in violation of Article 5 (2); |
| 2. | Any person who pays or receives money, or make transactions in violation of measures prescribed in Article 6 (1) 1; |
| 3. | Any person who violates obligations of safekeeping, deposit or sale according to measures prescribed in Article 6 (1) 2; |
| 4. | Any person who violates the obligation to collect claims according to measures prescribed in Article 6 (1) 3; |
| 5. | Any person who conducts capital transactions without obtaining permission according to the measures prescribed in Article 6 (2) or after obtaining permission by fraudulent or other unjust means, or who has violated an obligation of deposit; |
| 6. | Any person who conducts foreign exchange affairs in violation of Article 10 (2). |
| (2) | Imprisonment with labor and fines prescribed in paragraph (1) may be imposed concurrently. |
[This Article Wholly Amended by Act No. 9351, Jan. 30, 2009]
| Article 27-2 (Penalty Provisions) |
| (1) | Any of the following persons shall be punished by an imprisonment with labor for not more than three years or by a fine not exceeding three hundred million won: Provided, That where the triple value of the object related to the violation exceeds three hundred million won, the fine shall not be more than the triple value of such object: |
| 1. | Any person who fails to register under the main sentence of Article 8 (1) or paragraph (3) of the same Article, or a person who conducts foreign exchange affairs after making registration by fraud or other improper means (including any person who conducts foreign exchange affairs after making a false report of discontinuation prescribed in Article 8 (4) and any person who conducts foreign exchange affairs in violation of the disposition taken pursuant to the provisions of Article 12 (1)); |
| 2. | Any person who conducts foreign exchange brokerage without obtaining authorization pursuant to the forepart of Article 9 (1) or paragraph (3) or (5) of the same Article, or after obtaining authorization by fraud or other improper means (including any person who conducts foreign exchange brokerage after making a report prescribed in Article 9 (3) in falsehood and any person who conducts foreign exchange brokerage in violation of the disposition taken pursuant to the provisions of Article 12 (1)); |
| 3. | A person who makes or receives payment without obtaining permission pursuant to Article 15 (2) or after obtaining permission by fraud or other improper means. |
| (2) | Imprisonment with labor and fines prescribed in paragraph (1) may be imposed concurrently. |
[This Article Newly Inserted by Act No. 14525, Jan. 17, 2017]
| Article 28 (Penalty Provisions) |
| (1) | Any person who uses information for a use other than those prescribed in this Act, or divulges it to other persons in violation of Article 22 shall be punished by imprisonment with labor for up to two years or by a fine up to two hundred million won. |
| (2) | Imprisonment with labor and fines prescribed in paragraph (1) may be imposed concurrently. |
[This Article Wholly Amended by Act No. 9351, Jan. 30, 2009]
| Article 29 (Penalty Provisions) |
| (1) | Any of the following persons shall be punished by imprisonment with labor for not more than one year or by a fine not exceeding one hundred million won: Provided, That the triple value of the object related to the violation exceeds one hundred million won, the fine shall not be more than the triple value of such object: <Amended by Act No. 14047, Mar. 2, 2016; Act No. 14525, Jan. 17, 2017> |
| 1. | Any person who signs a contract without obtaining authorization under Article 8 (5) or after obtaining authorization in false or other unjust means; |
| 2. | Any person who fails to confirm in violation of Article 10 (1); |
| 3. | Any person whose amount of violation of an obligation to report under Articles 16 or 18 exceeds the amount prescribed by Presidential Decree within the extent of not less than five hundred million won; |
| 4. | Any person who exports or imports in means of payment or securities without filing a report under Article 17 or after filing a false report (limiting to a case of which the value of exportation or importation violating obligation of report under Article 17 is 20,000 dollars or more, and exceeding the ceiling determined by Presidential Decree); |
| 5. | Any person who conducts a transaction or an act in violation of suspension or restriction on transaction or act under Article 19 (2); |
| 6. | Any person who has been issued a disposition of administrative fines under Article 32 (1) re-offends against the same paragraph within two years from the receipt date of the relevant disposition. |
| (2) | A person who attempts to commit a violation prescribed in paragraph (1) 4 shall be punished. <Amended by Act No. 14525, Jan. 17, 2017> |
| (3) | Imprisonment with labor and fines prescribed in paragraph (1) may be imposed concurrently. |
[This Article Wholly Amended by Act No. 9351, Jan. 30, 2009]
| Article 30 (Confiscation or Additional Collection) |
Foreign exchange and other securities, precious metals, real estate and means of domestic payment acquired by a person who falls under any subparagraph of Article 27 (1), any subparagraph of Article 27-2, or any subparagraph of Article 29 (1) through such acts as prescribed therein shall be confiscated, and where it is impossible to confiscate them, the value thereof shall be collected in lieu of such confiscation. <Amended by Act No. 14525, Jan. 17, 2017> [This Article Wholly Amended by Act No. 9351, Jan. 30, 2009]
| Article 31 (Joint Penalty Provisions) |
If the representative of a legal entity, or an agent, an employee or other workers of a legal entity or an individual commits a violation falling under any of Articles 27, 27-2, 28 and 29 in connection with assets or business of the legal entity or an individual, not only shall such offenders be punished but the legal entity or the individual shall also be punished by a fine prescribed in the relevant Article: Provided, That if the legal entity or individual has exercised due diligence and supervision in connection with such assets or business in order to prevent such violation, this shall not apply. <Amended by Act No. 14525, Jan. 17, 2017> [This Article Wholly Amended by Act No. 9351, Jan. 30, 2009]
| Article 32 (Administrative Fines) |
| (1) | Any of the following persons shall be punished by an administrative fine not exceeding one hundred million won: Provided, That if he/she falls under Article 29, this shall not apply: <Amended by Act No. 10618, Apr. 30, 2011; Act No. 14047, Mar. 2, 2016; Act No. 14525, Jan. 17, 2017> |
| 1. | Any person who conducts foreign exchange affairs without filing a report on modification under Article 8 (4) or after filing a false report on modification; |
| 2. | Any person who conducts foreign exchange brokerage without filing a report on modification under the latter part of Article 9 (1) or after filing a false report on modification, or a person who conducts transactions in violation of paragraph (2) of the same Article; |
| 3. | Any person who pays or receives funds without filing a report under Article 16 or after filing a false report; |
| 3-2. | Deleted; <by Act No. 14525, Jan. 17, 2017> |
| 4. | Any person who transacts capital without filing a report under Article 18 (1) or has filed a false report; |
| 5. | Any person who transacts capital falling under a report even though the report was not accepted due to violation of Article 18 (5); |
| 6. | Any person who transacts capital differently from the details of recommendation under Article 18 (4) 3 in violation of paragraph (6) of the same Article. |
| (2) | Any of the following persons shall be punished by an administrative fine not exceeding 50 million won: <Newly Inserted by Act No. 14525, Jan. 17, 2017> |
| 1. | Any person who fails to submit data pursuant to Article 11-3 (5) or submits a false data; |
| 2. | Any person who pays, receives or moves funds in violation of the procedures for payment, etc. under Article 15 (1); |
| 3. | Any person who intends to export or import any means of payment or securities without filing a report pursuant to Article 17 or after filing a false report. |
| (3) | Any of the following persons shall be punished by an administrative fine not exceeding 30 million won: <Amended by Act No. 14525, Jan. 17, 2017> |
| 1. | Any person who fails to submit an ex post facto report which substitutes a report in violation of Article 16 or 18, or a person who makes a false ex post facto report; |
| 2. | Any person who fails to comply with inspections prescribed in Article 20 (3) or (6), or refuses, obstructs or evades such inspections; |
| 3. | Any person who fails to comply with corrective orders prescribed in Article 20 (5) or (6); |
| 4. | Any person who fails to make notification or provide materials in violation of an order of the Minister of Strategy and Finance prescribed in Article 21, or makes notification or provides materials in falsity. |
| (4) | Any of the following persons shall be punished by an administrative fine not exceeding ten million won: <Newly Inserted by Act No. 14525, Jan. 17, 2017> |
| 1. | Any person who fails to submit a report of discontinuation prescribed in Article 8 (4); |
| 2. | Any person who fails to file a report prescribed in Article 9 (3); |
| 3. | Any person who commits a violation subject to warning within two years from the date he/she has received a warning under Article 19 (1); |
| 4. | Any person who fails to submit a report or data in violation of Article 20 (1) or (2), or submits a false report or data; |
| 5. | Any person who fails to present data prescribed in Article 20 (4) or (6), or presents false data; |
| 6. | A person who fails to file a report, apply, statement, notify data or submit data by means of electronic documents in violation of any order of the Minister of Strategy and Finance prescribed in Article 24 (2). |
| (5) | Administrative fines under paragraphs (1) through (4) shall be imposed and collected by the Minister of Strategy and Finance as prescribed by Presidential Decree. <Amended by Act No. 14525, Jan. 17, 2017> |
[This Article Wholly Amended by Act No. 9351, Jan. 30, 2009]
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on April 1, 1999.
Article 2 (Time Limit for Application of Capital Transaction Permission System, etc. )
The provisions of Article 18 (2) and (3) shall be effective until December 31, 2005. <Amended by Act No. 6227, Oct. 23, 2000> Article 3 (Repeal of Act)
Article 4 (Transitional Measures concerning Permission, etc. )
Authorization or permission granted or report or registration made under the former Foreign Exchange Control Act (including any case deemed to obtain authorization) before this Act enters into force, shall be deemed to be authorization or permission granted or a report or registration made under this Act. Article 5 (Transitional Measures concerning Penalty Provisions, etc. )
The application of the penal provisions and administrative fines to any act committed before this Act enters into force, shall conform to the former Foreign Exchange Control Act. Article 6 (Relations to other Acts and Subordinate Statutes)
If the former Foreign Exchange Control Act or its provisions are cited in other Acts and subordinate statutes at the time this Act enters into force and there exist provisions corresponding to the cited provisions in this Act, it shall be deemed that this Act or the corresponding provisions of this Act are cited in lieu of the former provisions. In such cases, foreign exchange banks or institutions designated for foreign exchange businesses, and money exchangers as prescribed in the former Foreign Exchange Control Act, shall be deemed to be foreign exchange agencies and money exchangers, respectively.
ADDENDA <Act No. 6277, Oct. 23, 2000>
| (1) | (Enforcement Date) This Act shall enter into force on January 1, 2001: Provided, That the amended provisions of Article 2 of this Addenda shall enter into force on December 31, 2000. |
| (2) | (Transitional Measures concerning Penal Provisions) The application of the penal provisions to any act committed before this Act enters into force shall be governed by the former provisions. |
ADDENDA <Act No. 6316, Dec. 29, 2000>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Article 2 Omitted.
ADDENDUM <Act No. 7716, Dec. 14, 2005>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 8050, Oct. 4, 2006>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2007. (Proviso Omitted.)
Articles 2 through 12 Omitted.
ADDENDUM <Act No. 8266, Jan. 26, 2007>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 8635, Aug. 3, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force one year and six months after the date of its promulgation. (Proviso Omitted. )
Articles 2 through 44 Omitted.
ADDENDA <Act No. 8863, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Act No. 9351, Jan. 30, 2009>
| (1) | (Enforcement Date) This Act shall enter into force on February 4, 2009. |
| (2) | (Applicability concerning Imposition of Penalty Surcharges) The amended provisions of Article 12-2 shall apply beginning with the person who performs an act falling under any of the subparagraphs of Article 12 (1) for the first time after this Act enters into force. |
| (3) | (Transitional Measures concerning Penal Provisions, etc.) Former provisions shall apply to the disposition, penalty provisions and administrative fines to any act performed before this Act enters into force. |
ADDENDA <Act No. 9374, Jan. 30, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted. )
Article 2 Omitted.
ADDENDA <Act No. 9617, Apr. 1, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 through 13 Omitted.
ADDENDUM <Act No. 10618, Apr. 30, 2011>
This Act shall enter into force three months after the date of its promulgation.
ADDENDA <Act No. 11407, Mar. 21, 2012>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
(Proviso Omitted.)
Articles 2 and 3 Omitted.
ADDENDA <Act No. 14047, Mar. 2, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Article 2 (Transitional Measures concerning Conversion of Penalty Provisions to Administrative Fine)
Notwithstanding amended provisions of Article 29 (1) 7 and Article 32 (1) 3-2, penalty provisions or administrative fines against acts committed before this Act enters into force shall be applied in compliance with the previous provisions.
ADDENDA <Act No. 14525, Jan. 17, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Disposition of Imposition of Obligation to Collect Claims)
The amended provisions of Articles 6 (1) 3 and (5), and 7 shall also apply to claims generated before this Act enters into force. Article 3 (Applicability to Restriction, etc. on Business)
The amended provisions of Article 12 (1) 5-2 shall apply to violations committed after this Act enters into force. Article 4 (Applicability to Revocation of Registration, etc.)
The amended provisions of Article 12 (4) shall apply to cases where any registration or authorization is revoked after this Act enters into force. Article 5 (Transitional Measures concerning Registration of Money Exchange Business)
| (1) | Financial companies which has registered its money exchange business pursuant to former Article 8 (3) as at the time this Act enters into force shall be deemed to have registered the same business pursuant to Article 8 (1). |
| (2) | Each person who is not a financial company, etc. and has registered his/her money exchange business pursuant to former Article 8 (3) as at the time this Act enters into force shall be deemed to have registered his/her foreign exchange affairs limiting to the affairs prescribed in the amended provisions of Article 8 (3) 1. |
Article 6 (Transitional Measures concerning Application of Criteria for Administrative Dispositions)
| (1) | Notwithstanding the amended provisions of Article 19 (2), an administrative disposition taken against a violation of obligation to report, etc. under Articles 15 through 18 committed before this Act enters into force, shall be governed by the former provisions. |
| (2) | Notwithstanding the amended provisions of Article 19 (2), violations of obligation to report, etc. under Articles 15 through 18 which have been committed before this Act enters into force, shall be included in the calculation of the number of violations of obligation under the amended provisions of Article 19 (2), only if they are committed within two years retroactively from the occurrence of a violation after this Act enters into force. |
Article 7 (Transitional Measures concerning Penalty Provisions and Administrative Fines)
Application of penalty provisions and administrative fines against violations committed before this Act enters into force shall be governed by the former provisions.
Article 8 Omitted.