ENFORCEMENT DECREE OF THE FOREIGN EXCHANGE TRANSACTIONS ACT
Wholly Amended by Presidential Decree No. 21287, Feb. 3, 2009
Amended by Presidential Decree No. 21518, May 29, 2009
Presidential Decree No. 22493, Nov. 15, 2010
Presidential Decree No. 23041, Jul. 25, 2011
Presidential Decree No. 23488, Jan. 6, 2012
Presidential Decree No. 24225, Dec. 12, 2012
Presidential Decree No. 24441, Mar. 23, 2013
Presidential Decree No. 24727, Sep. 17, 2013
Presidential Decree No. 25050, Dec. 30, 2013
Presidential Decree No. 25818, Dec. 9, 2014
Presidential Decree No. 25945, Dec. 30, 2014
Presidential Decree No. 26341, jun. 30, 2015
Presidential Decree No. 27038, Mar. 22, 2016
Presidential Decree No. 27184, May 31, 2016
Presidential Decree No. 27556, Oct. 25, 2016
Presidential Decree No. 28145, jun. 27, 2017
Presidential Decree No. 28211, Jul. 26, 2017
Presidential Decree No. 29009, jun. 26, 2018
Presidential Decree No. 29787, May 28, 2019
Presidential Decree No. 30107, Oct. 8, 2019
CHAPTER I GENERAL PROVISIONS
| Article 2 (Scope of Application) |
"Other acts related thereto" in Article 2 (1) 1 through 3 of the Foreign Exchange Transactions Act (hereinafter referred to as the "Act") means acquisition, holding, remittance, collection, export, import, etc., of any payment means, precious metals, securities, etc., which are conducted in direct relation to transaction, payment or receipt under subparagraphs 1 through 3 of the same paragraph.
| Article 3 (Means of Payment) |
| (1) | "Bills of exchange, promissory notes and other payment orders as prescribed by Presidential Decree" in Article 3 (1) 3 (b) of the Act means bills of exchange, promissory notes, payment orders by mail or telegraph, and any others representing entitlement to payment, which do not fall under securities, and which are recognized by the Minister of Economy and Finance. |
| (2) | "Which are prescribed by Presidential Decree" in Article 3 (1) 3 (c) of the Act means prepaid cards issued upon prior receipt of a certain amount or any other similar ones, which are recognized by the Minister of Economy and Finance. |
"Those prescribed by Presidential Decree" in Article 3 (1) 7 of the Act means unregistered certificates of deposit, and other securities or deeds representing a title of property value, which can be negotiable as objects of investment.
"Others prescribed by Presidential Decree" in Article 3 (1) 9 of the Act means financial instruments that might provoke inflow or outflow of large-scale foreign capital because of their complexity of and unpredictability of future revenues, which are publicly notified by the Minister of Economy and Finance.
| Article 6 (Foreign Exchange Business) |
"Affairs prescribed by Presidential Decree" in Article 3 (1) 16 (e) of the Act means the affairs falling under each of the following subparagraphs: <Amended by Presidential Decree No. 27038, Mar. 22, 2016> | 1. | Purchase and sale, and brokerage of purchase and sale of securities and bonds denominated or paid in the domestic currency with non-residents; |
| 2. | Transactions of trust, insurance and derivatives (limited to those related to foreign exchange) between residents, or transactions of trust, insurance and derivatives between residents and non-residents; |
| Article 7 (Financial Companies) |
"Who are prescribed by Presidential Decree" in Article 3 (1) 17 of the Act means the following persons: <Amended by Presidential Decree No. 21518, May 29, 2009; Presidential Decree No. 24441, Mar. 23, 2013; Presidential Decree No. 26341, Jun. 30, 2015; Presidential Decree No. 27038, Mar. 22, 2016; Presidential Decree No. 28211, Jul. 26, 2017; Presidential Decree No. 29009, Jun. 26, 2018; Presidential Decree No. 29787, May 28, 2019> | 1-2. | Deleted; <by Presidential Decree No. 25945, Dec. 30, 2014> |
| 4. | Postal service agencies designated by the Minister of Science and ICT; |
| 5. | Deleted; <by Presidential Decree No. 28145, Jun. 27, 2017> |
| 7. | The Korea Ocean Business Corporation established under the Korea Ocean Business Corporation Act. |
| Article 8 (Overseas Direct Investment) |
| 1. | An investment in which stocks or investment equities acquired to take part in the management of a juristic person established under foreign statutes (including juristic persons in the course of incorporation; hereinafter referred to as "foreign juristic person") account for not less than 10/100 of the total number of stocks issued or the total amount of equity investment made by the relevant foreign juristic person (referring to the total ratio of stocks or investment equities where stock or investment equities are jointly acquired; hereafter in this paragraph referred to as "investment ratio"); |
| 2. | Establishment of any of the following relations with the foreign juristic person concerned, where the ratio of investment is less than 10/100: |
| (a) | Dispatch of executive officers; |
| (b) | Conclusion of a purchase and sale contract for raw materials or products for a term of one year or more; |
| (c) | Conclusion of a contract for offering and introducing technology or conducting joint research and development; |
| (d) | Conclusion of a contract for receiving an order of overseas construction and industrial plant construction; |
| 3. | Acquisition of additional stocks or investment equities of a foreign juristic person already invested pursuant to subparagraph 1 or 2; |
| 4. | Loans with a maturity of not less than one year made to a relevant foreign juristic person by a resident who has invested therein pursuant to subparagraphs 1 through 3. |
| 1. | Costs of establishing a branch or an office and operating funds; |
| 2. | Funds necessary for a resident to establish and operate an enterprise other than in the form of a juristic person in a foreign country; |
| 3. | Funds necessary for any overseas resource development business under Article 2 of the Overseas Resources Development Business Act or any infrastructure development project: Provided, That survey funds for the development of overseas resources and purchase funds for overseas resources shall be excluded. |
| Article 9 (Capital Transactions) |
| 1. | Payment or receipt of expenses directly incurred in maintaining offices, such as costs to purchase office fixtures, office rent, etc.; |
| 2. | Payment or receipt of money for export and import of goods and transportation fare, insurance premiums or other expenses directly incidental thereto; |
| 3. | Payment or receipt of a consideration for service transactions and expenses directly incidental thereto. |
| 1. | Transactions not falling under Article 3 (1) 19 (a) of the Act, and related to the accrual, modification or extinction of claims arising from lease-hold, provision of security, insurance, association or other similar contract between residents and non-residents or between residents: Provided, That the said transactions shall be limited to transactions on the accrual, modification or extinction of claims denominated or payable in foreign currency in cases of transactions between residents; |
| 2. | Transactions on the accrual, modification or extinction of claims arising from any inheritance, bequest, or donation between residents and non-residents or between residents: Provided, That for the said transactions shall be limited to transactions on the accrual, modification or extinction of claims denominated or payable in foreign currency in cases of transactions between residents; |
| 3. | Transactions between non-residents on the accrual, modification or extinction of claims denominated or payable in domestic currency; |
| 4. | Acquisition of foreign currency securities or any title thereto by a resident from another resident; |
| 5. | Acquisition of securities or any title thereto by a non-resident, denominated or payable in domestic currency from another non-resident; |
| 6. | Acts falling under Article 3 (1) 19 (e) of the Act between an individual's business office or any other office in the Republic of Korea and such person's business office or any other office in a foreign country, and giving and receiving of funds therebetween as a result of such acts; |
| 7. | Acts relevant to the establishment and operation, etc. of school or hospital between residents and a school or a hospital in a foreign country, and giving and receiving of funds therebetween as a result of such acts; |
| 8. | Other transactions on the accrual, modification or extinction of claims between residents and non-residents (excluding export and import of goods and service transaction) or transaction on the accrual, modification or extinction of claims between residents, which can be denominated or payable in foreign currency, and are recognized by the Minister of Economy and Finance. |
| Article 9-2 (Non-Deposit Liabilities in Foreign Currency, etc.) |
"Others ... prescribed by Presidential Decree" in Article 3 (1) 20 of the Act means any account for payment and settlement, any transitional account prior to final settlement, any account, etc. for managing a policy fund from among the titles of foreign currency accounts referred to in subparagraph 6 of Article 21, exclusive of the titles of accounts publicly notified by the Minister of Economy and Finance by taking into account the purpose of imposing macro-prudential stability levies under Article 11-2 of the Act (hereinafter referred to as "levies"). [This Article Newly Inserted by Presidential Decree No. 23041, Jul. 25, 2011]
| Article 10 (Classification of Residents and Non-Residents) |
| 1. | Overseas diplomatic missions of the Republic of Korea; |
| 2. | Organizations, agencies or other equivalent entities whose main offices are in the Republic of Korea; |
| 3. | Nationals of the Republic of Korea falling under any of the following items: |
| (a) | Persons dispatched to and stay in a foreign country for the purpose of working for an overseas diplomatic mission of the Republic of Korea; |
| (b) | Persons staying in Korea for more than three months after entering Korea as a non-resident; |
| (c) | Other persons need to be recognized as a resident considering the conditions of business, primary place of stay, etc., and are determined by the Minister of Economy and Finance; |
| 4. | Foreigners (excluding those falling under paragraph (2) 2 and 6 (a) and (b)) falling under any of the following items: |
| (a) | Persons engaging in business activities in the Republic of Korea; |
| (b) | Persons staying in the Republic of Korea for not less than six months. |
| (2) | Any of the following persons shall be deemed non-residents pursuant to Article 3 (2) of the Act: <Amended by Presidential Decree No. 28145, Jun. 27, 2017> |
| 1. | Diplomatic missions of foreign governments and international organizations in Korea; |
| 2. | The United States Armed Forces and United Nations Forces equivalent thereto in accordance with the Agreement under Article IV of the Mutual Defense Treaty between the Republic of Korea and the United States of America, regarding Facilities and Areas and the Status of United States Armed Forces in the Republic of Korea (hereafter in this subparagraph referred to as the "United States Armed Forces, etc."), members, civilian military employees, invited contractors of the United States Armed Forces, etc., and non-appropriated fund agencies, military post offices and military banks of the United States Armed Forces, etc.; |
| 3. | Business offices or other offices of a domestic juristic person, etc. in a foreign country; |
| 4. | Organizations, agencies or other equivalent entities whose main offices are in a foreign country; |
| 5. | Nationals of the Republic of Korea falling under any of the following items: |
| (a) | Persons engaging in business activities in a foreign country; |
| (b) | Persons serving in international organizations in a foreign country; |
| (c) | Persons staying in a foreign country for not less than two years. In such cases, where such persons entered Korea for temporary stay and have remained in Korea for not more than three months, the period of stay shall be deemed to be included in the said two-year period; |
| (d) | Other persons need to be recognized as nonresidents considering the conditions of business, primary place of stay, etc., and are determined by the Minister of Economy and Finance; |
| 6. | Foreigners falling under any of the following items: |
| (a) | Diplomats and consuls serving in foreign missions or international organizations in Korea and their attendants or employees; |
| (b) | Persons entering Korea to perform public duties for foreign governments or international organizations; |
| (c) | Persons staying in a foreign country for more than three months after leaving Korea as resident foreigners. |
| (3) | Family members living together and mainly dependent upon a resident or non-resident for their living shall be classified as residents or nonresidents, according to the classification of such residents or non-residents. |
| Article 11 (Suspension of Foreign Exchange Transactions) |
| (1) | Where the Minister of Economy and Finance intends to take or modify measures under Article 6 (1) and (2) of the Act, he/she shall publicly notify each of the following matters: <Amended by Presidential Decree No. 28145, Jun. 27, 2017> |
| 1. | Where he/she intends to temporarily suspend payment, receipt or transactions pursuant to Article 6 (1) 1 of the Act, the scope of the payment, receipt or transactions in question and the period of suspension thereof; |
| 2. | Where he/she has any means of payment or precious metals safekept, deposited, or sold pursuant to Article 6 (1) 2 of the Act, the objects, scope and period thereof; |
| 3. | Where he/she intends to make claims against non-residents collected back to the Republic of Korea pursuant to Article 6 (1) 3 of the Act, the scope of claims subject to collection and the period for collection; |
| 4. | Where he/she has any capital transactions permitted pursuant to Article 6 (2) of the Act, the types, scope, period and permission procedures of such capital transactions; |
| 5. | Where he/she has a person engaged in capital transactions deposit part of the means of payment acquired through such transactions pursuant to Article 6 (2) of the Act, the objects to be deposited, deposit ratios, deposit interest rates and period of deposit, and agencies to receive such deposit. |
| (2) | Deposit ratios and deposit interest rates under paragraph (1) 5 shall be determined according to each of the following standards: <Amended by Presidential Decree No. 28145, Jun. 27, 2017> |
| 1. | Deposit ratios shall be determined after comprehensive consideration of balance of international payments, currencies, and the movement of exchange rate; |
| 2. | Deposit interest rates shall be null: Provided, That this shall not apply where the Minister of Economy and Finance deems it especially necessary for the smooth and orderly management of foreign exchange. |
| (3) | Notwithstanding the provisions of paragraph (1), in urgent cases which do not permit public notification, the Minister of Economy and Finance may immediately implement measures pursuant to Article 6 (1) and (2) of the Act. In such cases, the Minister of Economy and Finance shall publicly notify the details of such measures without delay. |
| (4) | Where the Minister of Economy and Finance intends to withdraw the measures in Article 6 (1) and (2) of the Act as prescribed in paragraph (3) of the same Article, he/she shall publicly notify such intention. |
| Article 12 Deleted. <by Presidential Decree No. 28145, Jun. 27, 2017> |
CHAPTER II FOREIGN EXCHANGE AGENCIES
| Article 13 (Registration of Foreign Exchange Business) |
| (1) | Any person who intends to engage in foreign exchange affairs under the main sentence of Article 8 (1) of the Act for business purposes shall file an application for registration with the Minister of Economy and Finance by submitting an application stating the following matters, enclosed with the documents determined and publicly notified by the Minister of Economy and Finance, such as balance sheets and income statements: <Amended by Presidential Decree No. 28145, Jun. 27, 2017> |
| 2. | Locations of the head office and business offices in the Republic of Korea; |
| 3. | Scope of foreign exchange business; |
| 4. | Matters concerning capital, facilities and professional human resources; |
| 5. | Matters concerning executive officers. |
| (2) | Any person who intends to register pursuant to the main sentence of Article 8 (1) of the Act shall meet the following requirements: <Amended by Presidential Decree No. 23041, Jul. 25, 2011; Presidential Decree No. 26341, Jun. 30, 2015; Presidential Decree No. 27184, May 31, 2016; Presidential Decree No. 28145, Jun. 27, 2017; Presidential Decree No. 28211, Jul. 26, 2017; Presidential Decree No. 29009, Jun. 26, 2018; Presidential Decree No. 29787, May 28, 2019> |
| 1. | Its capital size and financial structure shall be adequate in light of criteria for financial soundness applied to the relevant financial companies, etc. determined by the Financial Services Commission (in cases of community credit cooperatives and the Federation under the Community Credit Cooperatives Act, referring to the Minister of the Interior and Safety; and in cases of the Korea Ocean Business Corporation under the Korea Ocean Business Corporation Act, referring to the Minister of Oceans and Fisheries); |
| 2. | It shall be connected with an agency designated to intermediate, concentrate, and exchange data on foreign exchange transactions, payment, or receipt under Article 25 (2) of the Act (hereinafter referred to as "foreign exchange information concentration agency") by means of a computer network; |
| 3. | It shall be equipped with data processing equipment to facilitate foreign exchange business and post-management thereto; |
| 4. | It shall secure at least two persons for each business office, who have at least two years of experience in foreign exchange or who have completed a course of study determined by the Minister of Economy and Finance. |
| (3) | Upon receipt of an application for registration under paragraph (1), the Minister of Economy and Finance may request the Governor of the Financial Supervisory Service under the Act on the Establishment, etc. of Financial Services Commission (hereinafter referred to as the "Governor of the Financial Supervisory Service") and the head of each foreign exchange information concentration agency to confirm whether the requirements under paragraph (2) are satisfied. In such cases, the Governor of the Financial Supervisory Service and the head of each foreign exchange information concentration agency shall notify the Minister of Economy and Finance of the results of confirmation within 10 days (Saturdays and public holidays shall not be counted in the period) from the date of receipt of a request for such confirmation. |
| (4) | The Minister of Economy and Finance shall accept an application for registration under paragraph (1), except in the following cases: <Amended by Presidential Decree No. 23041, Jul. 25, 2011; Presidential Decree No. 28145, Jun. 27, 2017> |
| 1. | Where a person who has filed an application for registration is not a financial company, etc.; |
| 2. | Where the requirements for registration referred to in paragraph (2) are not satisfied; |
| 3. | Where the submitted documents are deemed incomplete; |
| 4. | Where a person who has filed an application for registration (if the applicant is a corporation, including any executive officer thereof) is ineligible for registration under Article 12 (4) of the Act; |
| 5. | Other cases where any restriction imposed under this Act or other statutes or regulations is violated. |
| (5) | Where the Minister of Economy and Finance has accepted an application for registration under paragraph (4), he/she shall issue a certificate of registration to an applicant. <Amended by Presidential Decree No. 23041, Jul. 25, 2011> |
| (6) | "Any financial company, etc., ... prescribed by Presidential Decree" in the proviso to Article 8 (1) of the Act means postal service agencies referred to in subparagraph 4 of Article 7. <Amended by Presidential Decree No. 23041, Jul. 25, 2011> |
| Article 14 (Scope of Foreign Exchange Business) |
The scope of foreign exchange business of a financial company, etc. registered under Article 8 (1) of the Act (including financial companies, etc. referred to in the proviso to the same paragraph; hereinafter referred to as "foreign exchange agency") shall be as follows: <Amended by Presidential Decree No. 21518, May 29, 2009; Presidential Decree No. 22493, Nov. 15, 2010; Presidential Decree No. 23041, Jul. 25, 2011; Presidential Decree No. 24225, Dec. 12, 2012; Presidential Decree No. 25945, Dec. 30, 2014; Presidential Decree No. 26341, Jun. 30, 2015; Presidential Decree No. 27038, Mar. 22, 2016; Presidential Decree No. 27556, Oct. 25, 2016; Presidential Decree No. 28145, Jun. 27, 2017; Presidential Decree No. 29009, Jun. 26, 2018> | (a) | In cases of affairs prescribed in Article 3 (1) 16 (c) of the Act: Affairs related to deposits denominated or payable in a foreign currency in other foreign exchange agencies; |
| (b) | In cases of affairs prescribed in Article 3 (1) 16 (d) of the Act: Affairs related to deposits denominated or payable in a foreign currency in foreign financial institutions; |
| 4. | Other foreign exchange agencies: Business determined and publicly notified by the Minister of Economy and Finance, which is directly related to the operation of the relevant foreign exchange agencies among the following business: |
| (a) | Purchase and sale of foreign currency claims; |
| (b) | Issuance, and purchase and sale of foreign currency securities; |
| (c) | Purchase and sale, and brokerage of purchase and sale of securities and bonds denominated or paid in the domestic currency with non-residents; |
| (d) | Payment, collection and receipt between the Republic of Korea and foreign countries; |
| (e) | Borrowing and lending or guarantee of deposits and money denominated or payable in a foreign currency with residents; |
| (f) | Borrowing and lending or guarantee of deposits and money with non-residents; |
| (g) | Issuance, and purchase and sale of any means of foreign payment; |
| (h) | Transaction of derivatives; |
| (i) | Insurance transactions denominated in a foreign currency with residents, or insurance transactions with non-residents; |
| (j) | Lease of facilities denominated in a foreign currency; |
| (k) | Business of operating investment by classifying investors based on discretionary investment decisions; |
| Article 15 (Registration of Money Exchange Business) |
| (1) | Any person who intends to engage in foreign exchange affairs as an occupation under Article 8 (3) 1 of the Act (hereinafter referred to as "money exchange business") shall file an application for registration with the Minister of Economy and Finance by submitting an application stating the matters falling under the following subparagraphs enclosed with documents determined and publicly notified by the Minister of Economy and Finance: <Amended by Presidential Decree No. 28145, Jun. 27, 2017> |
| 2. | Locations of business offices; |
| 3. | Scope of money exchange business; |
| 4. | Matters concerning executive officers (limited to where the applicant for registration is a corporation). |
| (2) | A person who intends to register his/her money exchange business shall meet all of the following requirements: <Newly Inserted by Presidential Decree No. 28145, Jun. 27, 2017> |
| 1. | Place of business required for running money exchange business; |
| 2. | Data processing equipment determined and publicly notified by the Minister of Economy and Finance to facilitate money exchange business and the post management affairs thereto. |
| (3) | The Minister of Economy and Finance shall accept an application for registration under paragraph (1) unless it falls under any of the following cases: <Amended by Presidential Decree No. 23041, Jul. 25, 2011; Presidential Decree No. 28145, Jun. 27, 2017> |
| 1. | Where a person who has filed an application fails to have a place of business and data processing equipment under paragraph (2); |
| 2. | Where the submitted documents are deemed to have a defect; |
| 3. | Where a person who has filed an application for registration (if the applicant is a corporation, including any executive officer thereof) is ineligible for registration under Article 12 (4) of the Act; |
| 4. | Other cases where any restriction imposed under this Act or other statutes or regulations is violated. |
| (4) | Where the Minister of Economy and Finance has accepted an application for registration under paragraph (3), he/she shall issue a certificate of registration to an applicant. <Amended by Presidential Decree No. 23041, Jul. 25, 2011; Presidential Decree No. 28145, Jun. 27, 2017> |
| Article 15-2 (Registration of Small-Amount Overseas Remittance Business) |
| (1) | A person who intends to engage in the foreign exchange affairs falling under Article 8 (3) 2 of the Act (hereinafter referred to as "small-amount overseas remittance business") shall file an application for registration stating the following matters with the Minister of Economy and Finance, along with the documents determined and publicly notified by the Minister of Economy and Finance, such as the articles of incorporation: |
| 2. | Location of the head office and business offices; |
| 3. | Matters concerning the scope of handling business, including target countries for small-amount overseas remittance business and currencies to be handled; |
| 4. | Matters concerning the means of performing small-amount overseas remittance business; |
| 5. | Information on the accounts to be used for small-amount overseas remittance business (limited to the accounts opened at financial companies, etc. in the name of a person who intends to register small-amount overseas remittance business); |
| 6. | Matters concerning the foreign cooperators to be involved in the process of small-amount overseas remittance business; |
| 7. | Deleted; <by Presidential Decree No. 30107, Oct. 8, 2019> |
| 8. | Matters concerning the capital, facilities, and professional human resources prescribed in paragraph (2); |
| 9. | Matters concerning executive officers. |
| (2) | A person who intends to register small-amount overseas remittance business shall meet all of the following requirements: <Amended by Presidential Decree No. 30107, Oct. 8, 2019> |
| 2. | He/she shall meet the criteria for financial soundness determined and publicly notified by the Minister of Economy and Finance; |
| 3. | His/her computer network shall be connected to a foreign exchange information concentration institution; |
| 4. | He/she shall have the data processing equipment and data processing professionals determined and publicly notified by the Minister of Economy and Finance capable of performing small-amount overseas remittance business and the post-management thereto; |
| 5. | He/she shall secure at least two persons who have served in the foreign exchange business for at least two years or have completed education determined by the Minister of Economy and Finance; |
| (3) | Upon receipt of an application for registration under paragraph (1), the Minister of Economy and Finance may request the Governor of the Financial Supervisory Service or the head of a foreign currency information concentration institution to verify whether the applicant meets the requirements prescribed in paragraph (2). |
| (4) | The Minister of Economy and Finance shall grant registration, unless the application for registration filed under paragraph (1) falls under any of the following cases: |
| 1. | Where the applicant fails to fulfill requirements for registration prescribed in subparagraphs of paragraph (2); |
| 2. | Where any document received is deemed to have a defect; |
| 3. | Where a person who has filed an application for registration (including any executive officer of the applicant for registration) is ineligible for registration under Article 12 (4) of the Act; |
| 4. | Other cases where the application falls under any restriction imposed under this Act or other statutes or regulations. |
| (5) | Upon completion of registration under paragraph (4), the Minister of Economy and Finance shall issue a registration certificate to the applicant. |
| (6) | A person whose small-amount overseas remittance business is registered pursuant to Article 8 (3) 2 of the Act (hereinafter referred to as "small-amount overseas remittance business entity") shall manage his/her equity capital referred to in paragraph (2) 1 in the way it does not fall short of 70/100 of the amount prescribed in the same subparagraph (hereafter in this Article referred to as "minium equity capital"). |
| (7) | A small-amount overseas remittance business entity who fails to meet the minimum equity capital as at the end of each fiscal year shall fulfill the requirement for the equity capital prescribed in paragraph (2) 1 by the end of the following fiscal year. |
| (8) | Deleted. <by Presidential Decree No. 30107, Oct. 8, 2019> |
[This Article Newly Inserted by Presidential Decree No. 28145, Jun. 27, 2017]
| Article 15-3 (Scale and Methods of Small-Amount Overseas Remittance Business) |
| (1) | The limit of payment or receipt of amount that a small-amount overseas remittance business entity may handle on one occasion shall be the amount determined and publicly notified by the Minister of Economy and Finance, which does not exceed five thousand U.S. dollars, respectively; and the limit of accumulated annual amount of payment or receipt per client shall be the amount determined and publicly notified by the Minister of Economy and Finance for the stability of foreign currencies and smooth foreign transactions. <Amended by Presidential Decree No. 30107, Oct. 8, 2019> |
| (2) | A small-amount overseas remittance business entity shall pay money to clients or receive money from clients only through the accounts referred to in Article 15-2 (1) 5: Provided, That in cases of paying or receiving money in a manner assured of transparency equivalent to the transparency of transaction through such accounts and recognized by the Minister of Economy and Finance, the payment or receipt of money needs not to be conducted through the accounts referred to in Article 15-2 (1) 5. |
| (3) | A small-amount overseas remittance business entity shall use the accounts referred to in Article 15-2 (1) 5 only for the purpose of paying and receiving money pursuant to the main sentence of paragraph (2). |
| (4) | A small-amount overseas remittance business entity shall manage the accounting of the assets in the accounts referred to in Article 15-2 (1) 5, separately from other assets. |
[This Article Newly Inserted by Presidential Decree No. 28145, Jun. 27, 2017]
| Article 15-4 (Criteria for Securing Safety of Small-Amount Overseas Remittance Business) |
| (1) | In order to secure the safety and reliability of small-amount overseas remittance business, a small-amount overseas remittance business entity shall comply with the criteria determined by the Minister of Economy and Finance concerning the information technology sector, such as human resources, facilities, electronic devices for and expenses incurred in electronic transmission or processing, and the methods of certification. |
| (2) | A small-amount overseas remittance business entity shall designate a person who meets the qualifications determined by the Minister of Economy and Finance as the chief information security officer responsible for the security of the information technology sector on which the small-amount overseas remittance business is based. |
| (3) | A small-amount overseas remittance business entity, who intends to establish or modify the terms and conditions regarding the performance of small-amount overseas remittance business, shall file a report thereon to the Minister of Economy and Finance in advance. |
| (4) | Where necessary to maintain sound transaction order of foreign currencies, the Minister of Economy and Finance may recommend any small-amount overseas remittance business entity to modify the terms and conditions referred to in paragraph (3). |
| (5) | Where a small-amount overseas remittance business entity establishes or modifies the terms and conditions, he/she shall publish it on his/her website and specify the terms and conditions when concluding contracts with his/her customers relating to small-amount remittance business. |
| (6) | A small-amount overseas remittance business entity shall establish procedures to reflect reasonable opinions or complaints filed by customers in connection with his/her business and to compensate for the losses in connection with small-amount overseas remittance business. |
| (7) | A small-amount overseas remittance business entity shall provide customers with important information relating to small-amount remittance business, which is determined and publicly notified by the Minister of Economy and Finance. |
[This Article Newly Inserted by Presidential Decree No. 28145, Jun. 27, 2017]
| Article 15-5 (Registration of Other Specialized Foreign Exchange Business) |
| (1) | "Foreign exchange affairs prescribed by Presidential Decree" in Article 8 (3) 3 of the Act means the foreign exchange affairs determined and publicly notified by the Minister of Economy and Finance as foreign exchange affairs directly related to the business issuing and managing electronic currencies or electronic prepayment means, or the electronic payment settlement agency service under the Electronic Financial Transactions Act (hereinafter referred to as "other specialized foreign exchange business"). <Amended by Presidential Decree No. 29787, May 28, 2019> |
| (3) | Article 13 (excluding paragraph (4) 1) shall apply mutatis mutandis to the requirements and procedures for the registration of persons who intend to register other specialized foreign exchange business. In such cases, "foreign exchange business under the main sentence of Article 8 (1) of the Act" shall be deemed "other specialized foreign exchange business", and "relevant financial companies, etc." in paragraph (2) 1 of the same Article shall be deemed "persons who have obtained permission for business issuing and managing electronic currencies, persons who have registered their business issuing and managing electronic prepayment means or their electronic payment settlement agency service pursuant to the Electronic Financial Transactions Act". <Amended by Presidential Decree No. 29787, May 28, 2019> |
[This Article Newly Inserted by Presidential Decree No. 28145, Jun. 27, 2017]
| Article 15-6 (Concurrent Operation of Money Exchange Business) |
A person who intends to concurrently engage in money exchange business, small-amount overseas remittance business, or other specialized foreign exchange business shall register each business, respectively. In such cases, a person who intends to concurrently engage in at least two affairs among other specialized foreign exchange business shall also register each of such affairs respectively. <Amended by Presidential Decree No. 29787, May 28, 2019>
[This Article Newly Inserted by Presidential Decree No. 28145, Jun. 27, 2017]
| Article 16 (Modification of Registered Matters) |
| (1) | "Matters prescribed by Presidential Decree" in Article 8 (4) of the Act means the following matters: <Amended by Presidential Decree No. 25818, Dec. 9, 2014; Presidential Decree No. 28145, Jun. 27, 2017; Presidential Decree No. 30107, Oct. 8, 2019> |
| 1. | A foreign exchange agency: Matters set forth in Article 13 (1) 1 through 3 (excluding the locations of domestic business offices); |
| 2. | A person who has registered a money exchange business (hereinafter referred to as the "money exchange operator"): Matters set forth in Article 15 (1) 1 through 3; |
| 3. | A small-amount overseas remittance business entity: Matters set forth in Article 15-2 (1) 1 through 6; |
| 4. | A person who has registered other specialized foreign exchange business: Matters set forth in set forth in Article 13 (1) 1 through 3 which applies mutatis mutandis under Article 15-5 (3) (excluding the locations of domestic business offices). |
| (2) | Any of the following persons who intends to report modifications of registered matters or the closure of a foreign exchange business pursuant to Article 8 (4) of the Act shall submit documents determined and publicly notified by the Minister of Economy and Finance to the Minister of Economy and Finance seven days prior to the intended date of such modification or closure: <Amended by Presidential Decree No. 28145, Jun. 27, 2017> |
| 1. | A foreign exchange agency; |
| 2. | A person who has registered foreign exchange business pursuant to Article 8 (3) of the Act (hereinafter referred to as "specialized foreign exchange dealer"). |
| (3) | through (5) Deleted. <by Presidential Decree No. 30107, Oct. 8, 2019> |
| (6) | "If such authorization is prescribed by Presidential Decree" in Article 8 (5) of the Act refers to cases recognized by the Minister of Economy and Finance as necessary to pay careful attention to the inflow and outflow of foreign exchange as it is likely to cause serious harm to the national economy due to a sudden instability in international financial markets. <Amended by Presidential Decree No. 28145, Jun. 27, 2017> |
| (7) | Cases in which authorization has to be obtained under Article 8 (5) of the Act shall be determined and publicly notified by the Minister of Economy and Finance.<Amended by Presidential Decree No. 28145, Jun. 27, 2017> |
| Article 17 (Standards for Business Performance) |
Pursuant to Article 8 (6) of the Act, foreign exchange agencies and specialized foreign exchange dealers shall conduct business according to the standards in the following subparagraphs: <Amended by Presidential Decree No. 28145, Jun. 27, 2017; Presidential Decree No. 29787, May 28, 2019> | 1. | Foreign exchange agencies and specialized foreign exchange dealers shall keep a detailed record of transactions and keep the relevant documents thereof; |
| 2. | Foreign exchange agencies and specialized foreign exchange dealers, if they concurrently engage in business other than foreign exchange business, shall manage the relevant foreign exchange business (including accounting management thereof) separately from other business. In such cases, if any specialized foreign exchange dealer concurrently engages in business affairs prescribed in the subparagraphs of Article 8 (3) of the Act or concurrently engages in at least two affairs among other specialized foreign exchange business, he/she shall manage each business affair according to the following classification; |
| (a) | Where he/she concurrently engages in business affairs prescribed in subparagraphs of Article 8 (3) of the Act: He/she shall manage each of them respectively according to the classification set forth in subparagraphs of the same Article; |
| (b) | Where he/she concurrently engages in at least two affairs among affairs of other specialized foreign exchange business: He/she shall manage each of them respectively according to the classification by affairs of the relevant other specialized foreign exchange business; |
| 3. | Foreign exchange agencies shall establish and operate a comprehensive risk management system in order to efficiently manage business risks arising from dealing with business of foreign exchange; |
| 4. | Foreign exchange agencies and specialized foreign exchange dealers shall comply with other standards determined and publicly notified by the Minister of Economy and Finance for the smooth performance and securement of stability of foreign exchange business. |
| Article 17-2 (Calculation of Amount of Performance Bond) |
| (1) | The amount of a performance bond to be deposited by a small-amount overseas remittance business entity pursuant to Article 8 (7) of the Act (hereinafter referred to as "performance bond") shall be at least 300 million won, and the detailed amount thereof shall be determined and publicly notified by the Minister of Economy and Finance taking into consideration the scope of transactions of the relevant small-amount overseas remittance business entity. |
| (2) | A small-amount overseas remittance business entity shall deposit the performance bond in cash in an institution designated by the Minister of Economy and Finance pursuant to Article 8 (7) of the Act (hereinafter referred to as "performance bond depository") and maintain it for the whole period of registration: Provided, That where he/she purchases an insurance policy recognized by the Minister of Economy and Finance, the amount of performance bond may not be fully or partially deposited to the extent of the guarantee amount. |
| (3) | Where the amount deposited or guaranteed pursuant to paragraph (2) falls short of the amount prescribed in paragraph (1), the relevant small-amount overseas remittance business entity shall deposit the deficiency again within the period fixed by the Minister of Economy and Finance. |
| (4) | A small-amount overseas remittance business entity shall record the grounds for and the details of the calculation of the amount of performance bond and report them to the Minister of Economy and Finance. |
| (5) | Except as otherwise provided in paragraphs (1) through (4), matters necessary for the calculation of the amount of performance bond, and the deposit, report, etc. thereof shall be determined and publicly notified by the Minister of Economy and Finance. |
[This Article Newly Inserted by Presidential Decree No. 28145, Jun. 27, 2017]
| Article 17-3 (Payment of Performance Bond) |
| (1) | A person who has requested a small-amount overseas remittance business entity to make payment from the Republic of Korea to a foreign country may file an application for the payment of the performance bond with the performance bond depository to the extent of the amount of performance bond, if any of the following grounds occurs: |
| 1. | Where the small-amount overseas remittance business entity is unable to perform the client's request for payment due to the bankruptcy, business suspension, revocation of registration, or any other similar grounds; |
| 2. | Where the small-amount overseas remittance business entity fails to perform the client's request for payment, or where any damage occurs to the client in the course of performing it (limited to where there is any agreement for damage compensation, conciliation, final and conclusive judgment of the court, or any other decision with similar effect). |
| (2) | Upon receipt of an application under paragraph (1), the head of a performance bond depository may pay all or part of the performance bond of the small-amount overseas remittance business entity to a client in accordance with the procedures determined by the Minister of Economy and Finance. |
[This Article Newly Inserted by Presidential Decree No. 28145, Jun. 27, 2017]
| Article 17-4 (Refund of Performance Bond) |
In any of the following cases, the head of a performance bond depository shall return all or part of a performance bond to a small-amount overseas remittance business entity as prescribed by the Minister of Economy and Finance:
| 1. | Where the small-amount overseas remittance business entity has discontinued small-amount overseas remittance business; |
| 2. | Where the small-amount overseas remittance business entity, who is a corporation, has went bankrupt or has been dissolved or extinguished by a merger; |
| 3. | Where the registration of the small-amount overseas remittance business entity has been revoked pursuant to Article 12 of the Act; |
| 4. | Where the amount of performance bond already deposited by the small-amount overseas remittance business entity during the period fixed by the Minister of Economy and Finance exceeds the amount of the performance bond required to be deposited pursuant to Article 17-2 (1). |
[This Article Newly Inserted by Presidential Decree No. 28145, Jun. 27, 2017]
| Article 18 (Authorization of Foreign Exchange Brokerage) |
| (1) | A person who intends to engage in the business affairs of foreign exchange brokerage as an occupation pursuant to Article 9 (1) of the Act (hereinafter referred to as "foreign exchange brokerage") shall file an application for authorization with the Minister of Economy and Finance by submitting an application stating matters in the following subparagraphs enclosed with documents determined and publicly notified by the Minister of Economy and Finance: <Amended by Presidential Decree No. 28145, Jun. 27, 2017> |
| 2. | Locations of business offices; |
| 3. | Matters concerning capital, facilities, and professional human resources under paragraph (2); |
| 4. | Matters concerning the executive officers. |
| (2) | Any person who intends to obtain authorization for foreign exchange brokage shall meet the following requirements: <Amended by Presidential Decree No. 28145, Jun. 27, 2017> |
| 1. | The paid-in capital shall be not less than four billion won: Provided, That for those who intend to operate a brokerage of the purchase of sale of foreign currency (excluding forward exchange) and some other business related thereto, it shall not be less than five billion won; |
| 2. | That he/she shall be equipped with computerized facilities for conducting foreign exchange brokerage and reporting thereon; |
| 3. | That he/she shall retain not less than two professionals having the capability necessary for conducting business, including knowledge and experience, in foreign exchange brokerage; |
| 4. | That a person who applies for authorization (including an executive officer of a person who applies for authorization) shall not be a person who is ineligible to obtain authorization pursuant to Article 12 (4) of the Act. |
| (3) | Any person who has obtained authorization to engage in foreign exchange brokerage (hereinafter referred to as "foreign exchange broker") under Article 9 (1) of the Act shall operate his/her business lest the capital should be less than 70/100 of the paid-in capital threshold prescribed in paragraph (2) 1 after obtaining such authorization, and where he/she fails to satisfy such standards, the Minister of Economy and Finance may request him/her to increase the capital by the end of the following fiscal year. In such cases, standards of capital shall be applied as of the end of each fiscal year. |
| (4) | Counterparts to foreign exchange brokerage under Article 9 (2) of the Act shall be as set out in the following subparagraphs: <Amended by Presidential Decree No. 27038, Mar. 22, 2016> |
| 2. | The Government (limited to cases of operating and managing the foreign exchange equalization fund); |
| 3. | Agencies in subparagraphs 1 and 2 of Article 14; |
| 6. | Foreign financial institutions (excluding brokerage of the purchase or sale of means of domestic payment and foreign payment). |
| (5) | Where any foreign exchange broker intends to conduct merger, or transfer or take over all or part of business, it shall file an application for authorization with the Minister of Economy and Finance by submitting an application enclosed with the documents determined and publicly notified by the Minister of Economy and Finance, such as balance sheets and income statements, as referred to in Article 9 (3) of the Act. |
| (6) | The Minister of Economy and Finance, where he/she receives an application for authorization under paragraph (1) or (5), shall determine whether to grant authorization thereon within 30 days from the date of application, and notify the applicant thereof. |
| (7) | Where any foreign exchange broker intends to modify matters falling under any subparagraph of paragraph (1), dissolve or close all or part of its business, shall submit documents for reporting as determined and publicly notified by the Minister of Economy and Finance to the Minister of Economy and Finance seven days prior to the intended date under Article 9 (1) and (3) of the Act. |
| (8) | The Minister of Economy and Finance may have a foreign exchange broker deposit an amount equivalent to the ratio as determined and publicly notified by the Minister of Economy and Finance within the limit of 20/100 of paid-in capital in a financial company, etc. designated by the Minister of Economy and Finance in accordance with Article 9 (4) of the Act. In such cases, deposit procedures, methods of operating and managing deposits, etc. shall be determined by the Minister of Economy and Finance. <Amended by Presidential Decree No. 23041, Jul. 25, 2011> |
| (9) | Where a foreign exchange broker falls under any of the following subparagraphs, deposits made pursuant to paragraph (8) shall, upon the foreign exchange broker's application, be returned: |
| 1. | Where it closes the business affairs of foreign exchange brokerage; |
| 2. | Where it clears up the remaining business, as its authorization is cancelled. |
| Article 19 (Authorization of Foreign Exchange Brokerage in Foreign Countries) |
| (1) | Where a foreign exchange broker intends to obtain authorization under Article 9 (5) of the Act in order to engage in foreign exchange brokerage in a foreign country, shall submit an application to the Minister of Economy and Finance, enclosed with the documents determined and publicly notified by the Minister of Economy and Finance. The same shall apply in cases where it intends to modify such authorized matters. |
| (2) | Foreign exchange brokerage in a foreign country under Article 9 (5) of the Act shall be conducted in accordance with the following means: |
| 1. | Establishment of branches and offices; |
| 2. | Participation in the management of a foreign corporation through acquisition of stocks or investment equities of the foreign juristic person engaged in the foreign exchange business; |
| 3. | Method by which the relevant foreign exchange broker participates in the management of another foreign juristic person by having a foreign juristic person over which the broker exercises de facto managerial control acquire stocks or investment equities of the foreign juristic person engaged in foreign exchange business. |
| Article 20 (Performance of Business by Foreign Exchange Brokers) |
| (2) | Subparagraphs 1 and 2 of Article 17 shall apply mutatis mutandis to performance of business by foreign exchange brokers. |
| Article 20-2 (Acts Undermining Sound Foreign Exchange Transaction Order) |
| (1) | "Act ... which undermines sound transaction order prescribed by Presidential Decree" in Article 10 (2) 2 of the Act means any of the following acts: |
| 1. | An act that unfairly affects or is likely to unfairly affect foreign exchange rates by conducting transactions after mutually conspiring in advance with other foreign exchange agencies, specialized foreign exchange dealers and foreign exchange brokers (hereinafter referred to as "foreign exchange agencies, etc.") to trade at the same price or at the promised value during the same period of time; |
| 2. | An act that unfairly affects or is likely to unfairly affect foreign exchange rates by causing other persons to misjudge or misunderstand the demand or supply situation of foreign currencies or the foreign exchange rates by disseminating rumors or devising stratagems in falsehood. |
| (2) | Except as otherwise provided in paragraph (1), matters necessary to apply Article 10 (2) of the Act and paragraph (1) of this Article shall be determined and publicly notified by the Minister of Economy and Finance. |
[This Article Newly Inserted by Presidential Decree No. 28145, Jun. 27, 2017]
| Article 21 (Financial Soundness Regulations) |
Where the Minister of Economy and Finance intends to impose necessary restrictions on the business affairs of foreign exchange agencies, etc. pursuant to Article 11 (2) of the Act, he/she shall comply with the following standards: <Amended by Presidential Decree No. 25818, Dec. 9, 2014; Presidential Decree No. 28145, Jun. 27, 2017> | 1. | Where the minimum limit of payment reserves for specific liabilities denominated in foreign currency is set, the scope of such liabilities denominated in foreign currency, and the currency subject thereto, the time to accumulate, and the minimum limit of payment reserves shall be determined; |
| 2. | Where the limit on excess of foreign currency bought or sold is set, the separation and limit on excess of foreign currency bought or sold, the scope of assets and liabilities as standards for calculation, the calculation method, and the time and period shall be determined; |
| 3. | Where the method of raising and operating foreign currency funds is designated, such raising and operating items and the raising and operating method by item shall be determined; |
| 4. | Where the ratio of foreign currency assets and liabilities is set, the raising and operating method of funds by maturity and the scope of and standards for assets and liabilities shall be determined; |
| 5. | Where it is necessary to establish an account operated for non-residents by raising funds from non-residents, the scope of foreign exchange agencies to be established, the standards for raising and method of operating funds, and the method of accounting shall be determined; |
| 6. | Where the accounting standards for the foreign exchange account at institutions dealing with foreign exchange business are set, the title of accounts and the accounting methods shall be determined; |
| 7. | Where risk management standards incidental to foreign exchange business are set, the business affairs to be covered and standards therefor shall be determined; |
| 8. | Where standards for foreign exchange brokerage are set, the business affairs subject thereto or the operational methods shall be determined; |
| 9. | Where standards for foreign exchange business on money exchange operators are set, objects subject to restrictions and standards for selling foreign currency shall be determined; |
| 10. | In establishing the standards for small-amount overseas remittance business, the classification and limit of the amount exceeding the amount of foreign currencies bought or sold, and the scope of, and methods, timing and period of calculating the assets and liabilities which become the basis for calculation shall be set. |
| Article 21-2 (Persons Liable to Pay Levies) |
"Financial company, etc. prescribed by Presidential Decree" in Article 11-2 (1) of the Act means any of the following institutions (hereinafter referred to as "person liable to pay levies"): <Amended by Presidential Decree No. 25945, Dec. 30, 2014; Presidential Decree No. 26341, Jun. 30, 2015; Presidential Decree No. 27556, Oct. 25, 2016> | 1. | A bank established upon authorization under the Banking Act; |
| 7. | Any of the following institutions, the balance of non-deposit liabilities in foreign currency, etc. calculated under Article 21-4 (1) (limited to the balance incurred after July 1, 2015) of which exceeds 10 million U.S. dollars as of the termination date of a business year: |
[This Article Newly Inserted by Presidential Decree No. 23041, Jul. 25, 2011]
| Article 21-3 (Imposition Rates) |
"Imposition rate prescribed by Presidential Decree" in Article 11-2 (2) of the Act means a rate calculated by deducting a rate classified as follows, for the maturity (hereafter referred to as “weighted average” in this paragraph) calculated as an weighted average of the remaining maturity of non-deposit liabilities in foreign currency, etc. for the remaining amount thereof, as of the termination date of the relevant business year for a person liable to pay levies, from 10/10,000 (5/10,000 for the balance of non-deposit liabilities in foreign currency, etc. held by an institution referred to in subparagraph 7 of Article 21-2 and a local bank referred to in Article 2 (1) 10 (a) of the Banking Act against a person liable to pay levies) for each year (a period of not less than six months but up to one year shall be deemed one year): <Amended by Presidential Decree No. 26341, Jun. 30, 2015> | 1. | Maturity of weighted average over two years but not more than three years: 2/10,000; |
| 2. | Maturity of weighted average over three years but not more than four years: 3/10,000; |
| 3. | Maturity of weighted average over four years: 4/10,000 |
[This Article Wholly Amended by Presidential Decree No. 26341, Jun. 30, 2015]
| Article 21-4 (Methods of Calculating Balance of Non-Deposit Liabilities in Foreign Currency, etc.) |
| (1) | The balance of non-deposit liabilities in foreign currency, etc. calculated under Article 11-2 (2) and (5) of the Act shall be calculated according to the following formula. In such cases, an imposition period means a period of the immediately preceding 12 months, including the month in which the termination date of a business year of a person liable to pay levies is included: <Amended by Presidential Decree No. 26341, Jun. 30, 2015> |
The balance of non-deposit liabilities in foreign currency, etc. = The aggregate of the end of month balances of non-deposit liabilities in foreign currency, etc. with less than one year remaining maturity during the imposition period / 12
| (2) | If necessary to improve a structure for raising foreign currency or promote foreign currency transactions, etc. in imposing macro-prudential stability levies referred to in Article 11-2 of the Act, the Minister of Economy and Finance may impose macro-prudential stability levies by applying, as the balance of non-deposit liabilities in foreign currency, etc., the remaining amount after subtracting from the balance of non-deposit liabilities in foreign currency, etc. (hereinafter referred to as "balance before subtraction") calculated pursuant to paragraph (1), the respective amount as follows (hereinafter referred to as "amount subtracted"): Provided, That subparagraph 2 shall apply only where he/she imposes macro-prudential stability levies for the business years of 2017 and 2018: <Newly Inserted by Presidential Decree No. 24225, Dec. 12, 2012; Presidential Decree No. 26341, Jun. 30, 2015; Presidential Decree No. 28145, Jun. 27, 2017> |
| 1. | The amount calculated by multiplying foreign currency deposits received by weight value for each remaining maturity pursuant to attached Table 1; |
| 2. | For a foreign exchange agency which performs the role to promote foreign exchange transactions, the amount calculated by multiplying the aggregate of the following amounts by a rate for a period in which the agency performs the role to promote foreign exchange transactions during its business year. In such cases, the Minister of Economy and Finance shall determine and publicly notify the specific requirements of the relevant foreign exchange agency: |
| (a) | The amount equivalent to double the daily average transaction amount in the spot exchange market of the won and the yuan; |
| (b) | The amount denominated by the yuan out of the balance of non-deposit foreign exchange liabilities, etc. calculated under paragraph (1). |
| (3) | Where the amount calculated under each subparagraph of paragraph (2) is less than zero, the amount subtracted shall be zero; and where the amount subtracted is more than 30/100 of the balance before subtraction, the amount subtracted shall be the amount equivalent to 30/100 of the balance before subtraction. <Amended by Presidential Decree No. 26341, Jun. 30, 2015> |
[This Article Newly Inserted by Presidential Decree No. 23041, Jul. 25, 2011]
| Article 21-5 (Application, etc. of Period of Reducing or Exempting Levies) |
| (1) | The remaining balance of non-deposit liabilities in foreign currency, etc. in the business year to which the period referred to in Article 11-2 (3) 1 of the Act belongs (hereafter in this Article referred to as "reduction or exemption period of levies"), shall be the amount obtained by dividing the total of the daily balance of the non-deposit liabilities in foreign currency, etc., the remaining redemption period of which does not exceed one year, by the number of days of the relevant period. <Newly Inserted by Presidential Decree No. 28145, Jun. 27, 2017> |
| (2) | An increase in the balance of non-deposit liabilities in foreign currency, etc. under Article 11-2 (3) 2 and (5) of the Act shall be an amount calculated by subtracting the daily average balance for the immediately preceding three months before the application date of an additional imposition rate referred to in Article 11-2 (3) 2 of the Act (hereinafter referred to as "additional imposition rate" in this Article) from the daily average balance for a period during which the additional imposition rate is applied. <Amended by Presidential Decree No. 28145, Jun. 27, 2017> |
| (3) | When applying a period of reducing or exempting levies pursuant to paragraph (1) or when applying additional imposition rate to an increase in the balance of non-deposit liabilities in foreign currency, etc. pursuant to paragraph (2), the levies calculated on a daily basis for the application period shall be imposed and collected. <Amended by Presidential Decree No. 28145, Jun. 27, 2017> |
[This Article Newly Inserted by Presidential Decree No. 23041, Jul. 25, 2011]
| Article 21-6 (Payment Notices and Deadline) |
| (1) | The Minister of Economy and Finance shall issue to a person liable to pay levies a payment notice stating the amount of levies to be paid, payment deadline, etc. within four months after a business year ends. |
| (2) | The payment deadline under paragraph (1) shall be five months after a business year ends. |
[This Article Newly Inserted by Presidential Decree No. 23041, Jul. 25, 2011]
| Article 21-7 (Payment in Installments) |
| (1) | Where the Minister of Economy and Finance deems that a person liable to pay levies under Article 11-3 (1) of the Act is unable to pay the levies in a lump sum due to his/her managerial difficulty, etc., the Minister may permit him/her to make a payment in two installments over a period within one year. |
| (2) | A person liable to pay levies who intends to pay them in installments shall make an application for payment in installments to the Minister of Economy and Finance within 15 days from the date on which he/she has received a payment notice under Article 21-6 (1). |
| (3) | Upon receipt of an application for payment in installments under paragraph (2), the Minister of Economy and Finance shall notify, in writing, an applicant whether the application for payment in installments has been approved within 10 days from the date of receipt of the application; if the Minister approves payment in installments, he/she shall also notify the applicant of the amount to be paid in installments, a period of installment payment, and other matters necessary for payment in installments. |
[This Article Newly Inserted by Presidential Decree No. 23041, Jul. 25, 2011]
| Article 21-8 (Surcharges) |
| 1. | When the period of default (referring to a period from the following date of the payment deadline of levies to the date before that on which the levies are actually paid; hereafter the same shall apply in this Article) is not more than one month: An amount equivalent to 30/1,000 of the levies in arrears; |
| 2. | When the period of default exceeds one month: An amount calculated under subparagraph 1 plus an amount equivalent to 10/1,000 of the levies in arrears whenever each one month elapses. In such cases, a period during which a surcharge may be imposed may not exceed six months. |
[This Article Newly Inserted by Presidential Decree No. 23041, Jul. 25, 2011]
| Article 21-9 (Submission of Data) |
The data the Minister of Economy and Finance may request a person liable to pay levies to submit pursuant to Article 11-3 (5) of the Act shall be data on liabilities denominated in foreign currency, such as data on holding status of non-deposit liabilities in foreign currency, etc. and data for calculating the balance of non-deposit liabilities in foreign currency, etc. that are necessary for the Minister to impose and collect such levies. [This Article Newly Inserted by Presidential Decree No. 23041, Jul. 25, 2011]
| Article 21-10 (Lodging Objections and Adjustment of Levies) |
| (1) | Any person liable to pay levies who has received a payment notice under Article 21-6 (1) may lodge an objection pursuant to Article 11-3 (7) of the Act within 15 days from the date on which he/she has received the payment notice in any of the following cases: |
| 1. | Where a payment notice is sent to a wrong person; |
| 2. | Where he/she has an objection to the amount of levies stated in the payment notice. |
| (2) | Upon receipt of an objection lodged under paragraph (1), the Minister of Economy and Finance shall notify an applicant or legitimate person to pay levies of the result of processing the objection within 15 days from the date of receipt. In such cases, if the Minister has adjusted the amount of levies as a result of processing the objection, he/she shall re-impose and collect the adjusted amount, and shall re-impose and collect, or refund the difference between the paid amount and the adjusted amount if the levies have been already paid. |
| (3) | Lodging an objection under paragraph (1) does not affect the payment deadline of levies. |
| (4) | If the Minister of Economy and Finance deems it necessary to adjust an amount of levies that have been already notified or paid after conducting an inspection pursuant to Article 35 (3) 1 (d), he/she may re-impose and collect or refund the difference between the amount already notified or paid and the adjusted amount. |
| (5) | Where the Minister of Economy and Finance re-imposes and collects levies, or the adjusted levies or difference on/from a legitimate person to pay levies pursuant to paragraph (2) or (4), the payment deadline shall be the last day of the month following that on which a payment notice is given. |
[This Article Newly Inserted by Presidential Decree No. 23041, Jul. 25, 2011]
| Article 21-11 (Special Cases concerning Deadline) |
If a term of giving a payment notice or payment deadline under Article 21-6, a term of applying for payment in installments and giving a notice as to whether payment in installments has been approved under Article 21-7 and a term of lodging an objection and giving a notice on the result of processing an objection, and a payment term following re-imposition and collection under Article 21-10 falls on any public holiday, Saturday or the Workers' Day designated under the Designation of Workers' Day Act, it shall be extended to the following day of the public holiday, Saturday or Workers' Day. [This Article Newly Inserted by Presidential Decree No. 23041, Jul. 25, 2011]
| Article 22 (Revocation, etc. of Authorization) |
[This Article Wholly Amended by Presidential Decree No. 25818, Dec. 9, 2014]
| Article 23 (Standards, etc. for Imposition of Penalty Surcharge) |
[This Article Wholly Amended by Presidential Decree No. 25818, Dec. 9, 2014]
| Article 24 (Extension of Payment Deadlines of Penalty Surcharges) |
| (1) | Where it is deemed that a person who has been imposed with a penalty surcharge has difficulty in paying the entire amount of penalty surcharge at one time due to a cause falling under any of the following subparagraphs, the Minister of Economy and Finance may extend the deadline for payment or may have it paid in installments as prescribed in Article 12-2 (3) of the Act: |
| 1. | Where the person suffers from a substantial property loss due to a disaster, theft, etc.; |
| 2. | Where business faces a serious challenge, as business conditions worsen; |
| 3. | Where significant difficulty in financial conditions is expected due to payment of a penalty surcharge in a lump sum; |
| 4. | Where there exist other circumstances acknowledged by the Minister of Economy and Finance. |
| (2) | Where the Minister of Economy and Finance extends the payment deadline or allows payment in installments as prescribed in paragraph (1), he/she may have the person provide a security. |
| (3) | Where a person for whom the deadline for payment was extended or who was allowed to pay it in installments under paragraph (1) falls under any of the following subparagraphs, the Minister of Economy and Finance may revoke the decision on the extension of the payment deadline or on payment in installments and collect the penalty surcharge in a lump sum: |
| 1. | Where the person fails to pay penalty surcharge determined to be paid in installments by the deadline for payment; |
| 2. | Where the person fails to implement a security change order or other orders necessary for preservation of a security issued by the Minister of Economy and Finance; |
| 3. | Where it is recognized that all or the remainder of the penalty surcharge cannot be collected, due to compulsory execution, commencement of auction, declaration of bankruptcy, etc. |
CHAPTER III FOREIGN EXCHANGE EQUALIZATION FUND
| Article 25 (Creation and Operation of Foreign Exchange Equalization Fund) |
| (1) | "Funds prescribed by Presidential Decree including those necessary to facilitate foreign exchange transactions" in Article 13 (2) 6 of the Act means revenues such as interest, etc. accruing from the operation of any foreign exchange equalization fund. <Amended by Presidential Decree No. 23041, Jul. 25, 2011> |
| 1. | Guarantee of debts arising from foreign exchange transactions by the Bank of Korea, foreign exchange agencies or foreign financial institutions; |
| 2. | Transactions of derivatives; |
| 3. | Operation through entrustment to foreign exchange agencies, etc. |
| Article 26 (Issuance of Fund Bonds) |
| (1) | Foreign exchange equalization fund bonds under Article 13 (7) of the Act (hereinafter referred to as "fund bonds") shall be issued by means of public offering, sale or bidding methods. |
| (2) | Where it is deemed necessary for the smooth issuance of fund bonds, the Minister of Economy and Finance may have agencies falling under the following subparagraphs acquire such fund bonds: |
| 2. | Foreign exchange agencies; |
| (3) | The Minister of Economy and Finance may have a financial company, law firm and accounting firm (hereinafter referred to as "agencies") conduct affairs related to the issuance of fund bonds on his/her behalf for the efficient issuance of fund bonds according to the following classification: <Newly Inserted by Presidential Decree No. 24225, Dec. 12, 2012> |
| 1. | Financial Company: Affairs concerning support for the formulation of strategies to issue fund bonds and intermediation, etc. of the offering and sale of fund bonds; |
| 2. | Law firm: Affairs concerning declaration forms related to the issuance of fund bonds and the preparation of an investment contract, legal advice, etc.; |
| 3. | Accounting firm: Accounting related to the issuance of fund bonds. |
| (4) | The Minister of Economy and Finance may hear opinions of related experts for the transparent and fair selection of agencies. <Newly Inserted by Presidential Decree No. 24225, Dec. 12, 2012> |
| (5) | The Minister of Economy and Finance shall determine matters necessary for the selection of agencies, etc. referred to in paragraph (3). <Newly Inserted by Presidential Decree No. 24225, Dec. 12, 2012> |
| Article 27 (Operation, Management of Foreign Exchange Equalization Fund) |
| (1) | The Minister of Economy and Finance shall establish the account of foreign exchange equalization fund at the Bank of Korea in order to clarify the receipts and disbursements of the foreign exchange equalization fund. |
| (2) | The foreign exchange equalization fund shall be managed in won currency funds and foreign currency funds. <Amended by Presidential Decree No. 23041, Jul. 25, 2011> |
| (4) | The value of foreign currency funds held by the foreign exchange equalization fund shall be evaluated on the basis of exchange rates, and any resultant profits or losses shall be disposed of as appraisal profits or losses at the first settlement term that arrives after such profits or losses have accrued. <Amended by Presidential Decree No. 23041, Jul. 25, 2011> |
| (5) | Detailed matters necessary for the operation and management of the foreign exchange equalization fund under paragraphs (1) through (4) shall be determined by the Minister of Economy and Finance. <Amended by Presidential Decree No. 23041, Jul. 25, 2011> |
| Article 28 (Issuance of Certificates of Deposits) |
| (1) | Any person who intends to have a certificate of deposits issued pursuant to Article 13 (9) of the Act shall submit an application stating the deposited amount and its use to the Minister of Economy and Finance. |
| (2) | Where an application under paragraph (1) is made, the Minister of Economy and Finance shall issue and deliver a certificate of deposit within seven days from the date of such application, if deemed necessary to issue it. |
CHAPTER IV PAYMENT AND TRANSACTIONS
| Article 29 (Permission for Payment or Receipt) |
| (1) | Where the Minister of Economy and Finance makes it compulsory to obtain permission for payment or receipt pursuant to Article 15 (2) of the Act, he/she shall determine and publicly notify the reasons such permission has to be obtained, and the type and scope of such payment or receipt. |
| (2) | Any person who intends to obtain permission for payment or receipt under paragraph (1) shall submit to the Minister of Economy and Finance an application for permission determined and publicly notify by the Minister of Economy and Finance. |
| (3) | Where the Minister of Economy and Finance receives an application for permission for payment or receipt under paragraph (2), he/she shall determine whether to grant permission therefor by examining the following matters, and notify the applicant thereof: |
| 1. | Whether such payment or receipt is subject to permission; |
| 2. | The reason and amount to be paid or received; |
| 3. | Details of the transaction or act which constitutes the cause of such payment or receipt. |
| (4) | Where a reason behind the measure taken to obtain permission on payment or receipt pursuant to Article 15 (2) of the Act ceases to exist, the Minister of Economy and Finance shall promptly lift such measures. |
| Article 30 (Report on Methods of Payment or Receipt) |
| (1) | A person who intends to report the methods of payment or receipt pursuant to Article 16 of the Act shall submit documents for reporting to the Minister of Economy and Finance, as determined and publicly notified by the Minister of Economy and Finance. |
| 1. | Where settlement is made periodically through a certain foreign exchange bank by a method determined and publicly notified by the Minister of Economy and Finance when settlement between resident and non-resident is made by means of setoff; |
| 2. | Where the purchase and sale, transfer, and takeover of bonds are made by the means reported to the Minister of Economy and Finance as prescribed in Article 18 of the Act; |
| 3. | Where any payment for export not exceeding 50 thousand U.S. dollars for each contract is received after the period determined and publicly notified by the Minister of Economy and Finance; |
| 4. | Where a resident makes a direct payment of costs for current transactions not exceeding 10 thousand U.S. dollars for each transaction, other than through a foreign exchange agency, etc.; |
| 5. | Other cases determined and publicly notified by the Minister of Economy and Finance. |
| Article 31 (Report on Export and Import of Means of Payment) |
| (1) | The cases where a report is to be made on the export or import of means of payment or securities (hereinafter "means of payment, etc.") pursuant to Article 17 of the Act shall be as prescribed in the following subparagraphs: Provided, That the case where a person who has made a report pursuant to Articles 16 and 18 (1) of the Act exports or imports means of payment, etc. according to details of such report, shall be excluded: |
| 1. | Where it is necessary to facilitate sincere implementation of treaties concluded by the Republic of Korea and generally approved international laws and regulations; |
| 2. | Where it is necessary to prevent illegal outflow or inflow of capital. |
| (2) | Where the Minister of Economy and Finance makes it compulsory to report on the export or import of means of payment, etc., the Minister of Economy and Finance shall determine and publicly notify the scope of and standards for the export or import of means of payment, etc. to be reported or other necessary matters. |
| (3) | Any person who intends to report on the export or import of means of payment, etc. pursuant to paragraph (1) shall submit to the Minister of Economy and Finance documents for reporting determined and publicly notified by the Minister of Economy and Finance. |
| Article 32 (Report on Capital Transactions) |
| (1) | Any person who intends to file a report on capital transactions pursuant to Article 18 (1) of the Act shall submit to the Minister of Economy and Finance the documents for reporting determined and publicly notified by the Minister of Economy and Finance. In such cases, detailed matters concerning reporting procedures, methods, etc. of report shall be determined and publicly notified by the Minister of Economy and Finance. |
| (2) | "Capital transactions prescribed by Presidential Decree" in the proviso to Article 18 (1) of the Act means the transactions in the following subparagraphs: |
| 1. | Transactions performed by a foreign exchange agency as a foreign exchange business: Provided, That any transaction publicly notified by the Minister of Economy and Finance as a transaction, which is likely to disturb the order of foreign exchange transactions or which may provoke sudden inflow or outflow of foreign currency, may be made to be reported; |
| 2. | Small capital transactions of less than the amount determined and publicly notified by the Minister of Economy and Finance; |
| 3. | Deposit transactions by a person who stays in a foreign country with a non-resident; |
| 4. | Transactions acknowledged as being insignificant by the Minister of Economy and Finance including modification, etc. of a contract which do not accompany additional capital inflow or outflow; |
| 5. | Other transactions determined and publicly notified by the Minister of Economy and Finance. |
| (3) | In determining whether to accept a report pursuant to Article 18 (3) of the Act, the Minister of Economy and Finance shall determine whether to accept or reject the report, or recommend transaction details to be modified within the processing period referred to in paragraph (7), and notify the applicant thereof. In such cases, if it falls under any case publicly notified in advance which is recognized as standardized overseas direct investment in consideration of the type of business for investment, investment pattern, scale of investment, etc., the examination of requirements may be omitted. |
| (4) | In making an examination under paragraph (3), where it is deemed difficult to examine the details of report because they are unclear, the Minister of Economy and Finance may request the applicant to promptly supplement them within a considerable period specified, and return documents for report if the applicant fails to supplement them within the said period. |
| (5) | Any person who has been advised to modify the transaction details pursuant to paragraph (3) shall notify the Minister of Economy and Finance of whether he/she accepts such recommendations for modification within ten days from the date of receipt of such recommendations, and if the applicant fails to do so within the said period, he/she shall be deemed to have rejected such recommendation. |
| (6) | Where the Minister of Economy and Finance receives a notice of non-acceptance under paragraph (5), he/she shall determine whether to issue an order to modify or suspend such capital transactions within ten days from the date of receipt of such notice (the date when ten days elapsed since the date when the reporter receives recommendations for modification in the absence of such notice), and notify the reporter thereof. |
CHAPTER V SUPPLEMENTARY PROVISIONS
| Article 33 (Administrative Dispositions) |
| (1) | "Amount prescribed by Presidential Decree" in Article 19 (1) 2 of the Act means the amount according to the following classifications: <Amended by Presidential Decree No. 25818, Dec. 9, 2014> |
| (2) | The standards for administrative dispositions under Article 19 (1) and (2) of the Act shall be as specified in attached Table 3-2. <Amended by Presidential Decree No. 29787, May 28, 2019> |
| Article 34 (Reporting on Current Status of Claim Held) |
| (1) | Claims subject to filing a report on the current status of claims held by non-residents under Article 20 (1) of the Act shall be those claims exceeding 10 thousand U.S. dollars. In such cases, the scope of claims subject to reporting, time of and deadline for reporting and other necessary matters shall be determined and publicly notified by the Minister of Economy and Finance. |
| (2) | Paragraph (1) shall apply to foreign residents and residents falling under the proviso to Article 3 (1) 15 of the Act, as limited to the claims acquired through transactions to which the Act or this Decree applies. |
| (2) | "Persons prescribed by Presidential Decree" in Article 20 (6) of the Act means the Commissioner of the Korea Customs Service. |
| (3) | The Minister of Economy and Finance may entrust the Governor of the Bank of Korea, the Governor of the Financial Supervisory Service, or the Commissioner of the Korea Customs Service with the duties prescribed in Article 20 (3) through (5) of the Act according to the following classifications, pursuant to paragraph (6) of the same Article and have their employees perform such duties: <Amended by Presidential Decree No. 23041, Jul. 25, 2011; Presidential Decree No. 24727, Sep. 17, 2013; Presidential Decree No. 27038, Mar. 22, 2016; Presidential Decree No. 28145, Jun. 27, 2017> |
| 1. | The Governor of Bank of Korea: Business for the following persons: Provided, That, for a person falling under item (b), the methods of requesting an inspection to the Governor of the Financial Supervisory Service or jointly participating in an inspection conducted by the Governor of the Financial Supervisor Service shall be employed, while, for the person falling under item (d), the methods of requesting an inspection to the Governor of the Financial Supervisory Service or jointly participating in an inspection conducted by the Governor of the Financial Supervisor Service may also be employed: |
| (a) | Persons engaging in foreign exchange brokerage and their parties to transactions and interested parties; |
| (b) | Financial institutions established under Article 11 of the Bank of Korea Act from among foreign exchange agencies subject to the business affairs performed by the Governor of the Bank of Korea under entrustment pursuant to Article 37 (3) 3; |
| (c) | Persons subject to reporting relevant to the business affairs performed by the Governor of the Bank of Korea under entrustment pursuant to Article 37 (3) 11; |
| (d) | Persons liable to pay levies for whom the Governor of the Bank of Korea performs duties entrusted pursuant to Article 37 (3) 13; |
| 2. | The Governor of the Financial Supervisory Service: Business affairs for the following persons: Provided, That business affairs for a person falling under each item of subparagraph 1 (excluding business affairs conducted under the proviso to subparagraph 1) and business affairs for a person falling under each item of subparagraph 3 shall be excluded: |
| (a) | Persons operating foreign exchange business and their parties to transactions and interest parties; |
| (b) | Persons engaging in small-amount overseas remittance business and their parties to transactions and interest parties; |
| (c) | Persons engaging in other specialized foreign exchange business and their parties to transactions and interest parties; |
| (d) | Persons not falling under any item of subparagraphs 1 and 3, such as persons directly involved in a service transaction or capital transaction unrelated to export and import trade. |
| 3. | The Commissioner of the Korea Customs Service: The following persons: |
| (a) | A person who engages in money exchange business and their parties to transactions and interested parties; |
| (b) | Parties to and interested parties to export and import transactions or to service transactions and capital transactions (for service transactions and capital transactions, limited to payment or receipt by a method referred to in subparagraphs 3 and 4 of Article 16 of the Act for the purpose of a transaction related to export or import, or for transfer remittance). |
| (4) | Where the Minister of Economy and Finance intends to conduct an inspection pursuant to paragraph (3), he/she shall clearly specify business affairs to be inspected. |
| (5) | Any person entrusted with affairs of inspections pursuant to paragraph (3) may determine the standards, methods, and procedures of the inspections or other matters pertaining thereto. |
| (6) | Where it is acknowledged that an act done by a person falling under any item of paragraph (3) 2 causes or is likely to cause a risk to the stability of the foreign exchange market (including cases deemed to fall under or be likely to fall under Article 10 (2) of the Act), the Governor of the Bank of Korea may request the Governor of the Financial Supervisory Service to conduct an inspection the person falling under paragraph (3) 2, in specific limits set, and may request the Governor of the Financial Supervisory Service to have the employees of the Bank of Korea jointly participate in an inspection conducted by the Governor of the Financial Supervisory Service, on financial institutions, parties to transactions, and interested parties under Article 11 of the Bank of Korea Act. <Amended by Presidential Decree No. 28145, Jun. 27, 2017> |
| (7) | Where the Governor of the Bank of Korea requests inspections or joint inspection in which his/her employees participate pursuant to paragraph (6), he/she shall report such fact to the Minister of Economy and Finance in advance. |
| (8) | The Governor of the Bank of Korea may request the Governor of the Financial Supervisory Service to forward the results of inspection under paragraph (6) or request corrective measures based on the results of such inspection. |
| (9) | Where it is acknowledged that an act related to the export and import transactions, done by a person conducting service transactions or capital transactions, causes or is likely to cause a risk to the order of foreign exchange transactions, the Governor of the Financial Supervisory Service may request the Commissioner of the Korea Customs Service to conduct a joint inspection on the parties and interested parties to export and import transactions. In such cases, the Commissioner of the Korea Customs Service requested to conduct the joint inspection shall follow such request unless there is a compelling reason not to do so. |
| (10) | When the Governor of the Financial Supervisory Service has conducted a joint inspection pursuant to paragraph (9), he/she shall forward a written inspection report to the Commissioner of the Korea Customs Service, and may request corrective measures based on the results of such inspection. |
| (11) | Where any act of a person who engages in foreign exchange business, small-amount overseas remittance business, or other specialized foreign exchange business causes or is likely to cause harm to business order of money exchange business, small-amount overseas remittance business or other specialized foreign exchange business, the Commissioner of the Korea Customs Service or the Governor of the Financial Supervisory Service may request the head of the other institution to conduct a joint inspection. In such cases, upon receipt of a request for a joint inspection, the Commissioner of the Korea Customs Service or the Governor of the Financial Supervisory Service shall comply with such request unless there is a compelling reason not to do so. <Newly Inserted by Presidential Decree No. 28145, Jun. 27, 2017> |
| (12) | Notwithstanding paragraph (11), where it is apparent that there is a risk of causing harm to the foreign exchange transaction order, one of the institutions may notify the other institution of the results after conducting an inspection and taking subsequent necessary measures independently. <Newly Inserted by Presidential Decree No. 28145, Jun. 27, 2017> |
| (13) | When the Commissioner of the Korea Customs Service or the Governor of the Financial Supervisory Service has conducted a joint inspection pursuant to paragraph (11), he/she shall send the written results of the inspection to the head of the other institution, and may request him/her to take corrective measures depending on the results of the inspection. <Newly Inserted by Presidential Decree No. 28145, Jun. 27, 2017> |
| (14) | Where it is acknowledged that an act related to service transactions or capital transactions, done by an exporter or importer, causes or is likely to cause a risk to the order of foreign exchange transactions, the Commissioner of the Korea Customs Service may request the Governor of the Financial Supervisory Service to conduct a joint inspection on the parties and interested parties to service transactions or capital transactions. In such cases, the Governor of the Financial Supervisory Service requested to conduct the joint inspection shall follow such request unless there is a compelling reason not to do so. <Amended by Presidential Decree No. 28145, Jun. 27, 2017> |
| (15) | When the Commissioner of the Korea Customs Service has conducted a joint inspection pursuant to paragraph (14), he/she shall forward an inspection report to the Governor of the Financial Supervisory Service, and may request corrective measures based on the results of such inspection. <Amended by Presidential Decree No. 28145, Jun. 27, 2017> |
| (16) | When the Governor of the Bank of Korea, the Commissioner of the Korea Customs Service, or the Governor of the Financial Supervisory Service becomes aware of any fact related to an inspection of any other institution in the course of performing an inspection, he/she shall inform the relevant institution of such fact without delay. <Newly Inserted by Presidential Decree No. 28145, Jun. 27, 2017> |
[This Article Wholly Amended by Presidential Decree No. 24727, Sep. 17, 2013]
| Article 35-2 (Sharing of Administrative Information) |
| 1. | A certificate of fact on the entry into, or the departure from, the Republic of Korea; |
| 2. | A certificate of fact on alien registration; |
| 3. | A certificate of fact on reporting the place of residence in the Republic of Korea; |
| 4. | A certificate of alien's registration of real estates; |
| 5. | A certificate of report of emigration; |
| 6. | A certified copy of household register or certified copy of individual register; |
| 7. | A corporation registration certificate; |
| 8. | A building registration certificate; |
| 9. | A land registration certificate; |
| 10. | Electronic data from family relation registeration; |
| 11. | A business registration certificate; |
| 12. | A certificate of business closure. |
[This Article Newly Inserted by Presidential Decree No. 29787, May 28, 2019]
| Article 36 (Notification to Commissioner of National Tax Service) |
| (1) | "Persons prescribed by Presidential Decree" in Article 21 (1) of the Act means the head of a foreign exchange information concentration agency and the head of a specialized credit financial business association referred to in the Specialized Credit Finance Business Act. <Amended by Presidential Decree No. 25818, Dec. 9, 2014> |
| (2) | Where the Minister of Economy and Finance orders the Governor of the Bank of Korea, the head of a foreign exchange agency, the head of a custom office, the head of a foreign exchange information concentration agency, and the head of a specialized credit financial business association referred to in the Specialized Credit Finance Business Act, to give notice to 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, in accordance with Article 21 (1) of the Act, he/she shall determine and publicly notify necessary matters, such as transactions subject to notification, the time of such notification, etc. <Amended by Presidential Decree No. 25818, Dec. 9, 2014> |
| (3) | "Person prescribed by Presidential Decree" in Article 21 (2) of the Act means the foreign exchange information concentration agency. |
| Article 37 (Delegation and Entrustment of Authority) |
| (1) | The authority of the Minister of Economy and Finance concerning the following matters shall be delegated to the Commissioner of the Korea Customs Service pursuant to Article 23 (1) of the Act. The Commissioner of the Korea Customs Service may partially re-delegate the authority delegated to the heads of customs houses after obtaining approval from the Minister of Economy and Finance: <Amended by Presidential Decree No. 27038, Mar. 22, 2016; Presidential Decree No. 27184, May 31, 2016; Presidential Decree No. 28145, Jun. 27, 2017> |
| 1. | Registration of money exchange business and report on modification of any registered matters and discontinuance of money exchange business under Article 8 (3) 1 and (4) of the Act; |
| 1-2. | Supervision over, and orders necessary for the supervision over, money exchange operators, under Article 11 (1) of the Act; |
| 2. | Revocation of registration, restriction on business, or suspension of business of money exchange operators under Article 12 (1) of the Act, or holding hearings under paragraph (3) of the same Article; |
| 5. | Administrative dispositions, such as warning and suspension of transaction, etc. (limited to those taken against any person falling under Article 35 (3) 3) under Article 19 of the Act and holding hearings under paragraph (3) of the same Article; |
| 6. | Request for reports under Article 20 (1) of the Act and for submitting data or information under paragraph (2) of the same Article (limited to cases where it is necessary to handle any administrative affairs entrusted under this paragraph); |
| 7. | Imposition and collection of administrative fines under Article 32 (1) through (4) (excluding cases falling under paragraph (2) 3 of the same Article) (limited to persons falling under Article 35 (3) 3); |
| (2) | The authority of the Minister of Economy and Finance concerning the following matters shall be entrusted to the Financial Services Commission pursuant to Article 23 (1) of the Act. The Financial Services Commission may partially re-entrust the authority entrusted to the Governor of the Financial Supervisory Service after obtaining approval from the Minister of Economy and Finance: <Amended by Presidential Decree No. 24727, Sep. 17, 2013; Presidential Decree No. 27184, May 31, 2016; Presidential Decree No. 28145, Jun. 27, 2017> |
| 1. | Supervision of, and orders necessary for the supervision of, foreign exchange agencies and persons registered for other specialized foreign exchange business under Article 11 (1) of the Act; |
| (a) | Matters in subparagraph 2 of Article 21 (excluding restrictions on the agencies in subparagraph 1 of Article 14); |
| (b) | Matters in subparagraphs 4 through 7 of Article 21; |
| 3. | Restrictions on, or suspension of business of foreign exchange agencies and persons registered for other specialized foreign exchange business under Article 12 (1) of the Act; |
| 4. | Imposition of penalty surcharges on foreign exchange agencies and persons registered for other specialized foreign exchange business under Article 12-2 of the Act; |
| 5. | Reporting on capital transactions under Article 18 of the Act (limited to matters publicly notified by the Minister of Economy and Finance); |
| 6. | Taking administrative dispositions, such as warnings, suspension of transactions, etc., under Article 19 of the Act, (limited to dispositions taken against any person falling under Article 35 (3) 2, but excluding dispositions on small-amount overseas remittance business entities, the parties to the transactions and related persons and cases falling under paragraph (5) 3) and holding hearings under paragraph (3) of the same Article; |
| 7. | Request for reports (limited to cases where such reports are necessary to handle any business entrusted under this paragraph) under Article 20 (1) of the Act and for submitting data or information under paragraph (2) of the same Article; |
| 8. | Imposition and collection of administrative fines under Article 32 (1) through (4) of the Act (excluding cases falling under paragraph (2) 3 of the same Article) (limited to persons falling under Article 35 (3) 2, but excluding dispositions against small-amount overseas remittance business entities, the parties to the transactions and related persons). |
| (3) | The authority of the Minister of Economy and Finance concerning the following matters shall be entrusted to the Governor of the Bank of Korea pursuant to Article 23 (1) of the Act: <Amended by Presidential Decree No. 23041, Jul. 25, 2011; Presidential Decree No. 24727, Sep. 17, 2013; Presidential Decree No. 27038, Mar. 22, 2016; Presidential Decree No. 28145, Jun. 27, 2017> |
| 1. | Deleted; <by Presidential Decree No. 27038, Mar. 22, 2016> |
| 2. | Supervision of, and orders necessary for the supervision of, foreign exchange brokerage companies under Article 11 (1) of the Act; |
| (a) | Matters in subparagraphs 1, 3, and 8 of Article 21: Provided, That the matters concerning the method of raising and operating foreign currency funds under subparagraph 3 of Article 21 shall be limited to those applicable to foreign exchange agencies other than the Bank of Korea; |
| (b) | Matters in subparagraph 2 of Article 21 (limited to restrictions on the agencies in subparagraph 1 of Article 14); |
| 4. | Deleted; <by Presidential Decree No. 27038, Mar. 22, 2016> |
| 5. | Restrictions on, or suspension of the business affairs of, foreign exchange brokerage companies under Article 12 (1) of the Act; |
| 8. | Reporting on the method of payment or receipt under Article 16 of the Act (excluding cases falling under paragraph (5) 1); |
| 9. | Reporting on capital transactions under Article 18 of the Act (limited to matters publicly notified by the Minister of Economy and Finance); |
| 10. | Administrative dispositions (limited to persons falling under Article 35 (3) 1), such as warnings, suspension of transactions, etc. under Article 19 of the Act; |
| 11. | Request for reports under Article 20 (1) of the Act (limited to cases where such reports are necessary to handle any business entrusted under this paragraph and to prepare statistics on foreign exchange) and for submitting data or information under paragraph (2) of the same Article; |
| 12. | Deleted; <by Presidential Decree No. 28145, Jun. 27, 2017> |
| (g) | Receipt and processing of an application lodged under Article 11-3 (6) of the Act and Article 21-10 of this Decree, notification of processing results, imposition, collection or refund of adjusted levies, if any, or the balance; |
| (h) | Detailed matters necessary for calculating maturity, the balance of non-deposit liabilities in foreign currency, etc., an increase in the balance of non-deposit liabilities in foreign currency, etc. under Articles 21-3 through 21-5; |
| (i) | Other matters necessary to efficiently impose and collect levies and surcharges. |
| (4) | The authority of the Minister of Economy and Finance concerning the following matters shall be entrusted to the Governor of the Financial Supervisory Service pursuant to Article 23 (1) of the Act: <Newly Inserted by Presidential Decree No. 28145, Jun. 27, 2017; Presidential Decree No. 29787, May 28, 2019> |
| 1. | Supervision of, and issuance of orders necessary to supervise small-amount overseas remittance business entities pursuant to Article 11 (1) of the Act; |
| 2. | Imposition of restrictions under Article 11 (2) of the Act on the matters referred to in subparagraph 10 of Article 21 which are related to small-amount overseas remittance business entities; |
| 3. | Request for reporting under Article 20 (1) of the Act or for submitting data or information under paragraph (2) of the same Article (limited to where it is necessary to handle any administrative affairs entrusted or re-entrusted pursuant to paragraph (2) or this paragraph); |
| 4. | Receipt of applications for registration under Article 15-2 (1) and verification thereof, and receipt of reports on the modification or closure of business under Article 16 (2) and the verification thereof; |
| 5. | Matters concerning the requirements for the registration of small-amount overseas remittance business entities under Article 15-2 (2) 4; |
| 6. | Matters concerning the assuring of transparency at a level comparable to transaction through accounts under the proviso to Article 15-3 (2); |
| 7. | Establishment or modification of contractual terms, and report on the modification of terms and conditions, and recommendation for the modification thereof to small-amount overseas remittance business entities pursuant to Article 15-4 (3) and (4); |
| 8. | Deleted; <by Presidential Decree No. 30107, Oct. 8, 2019> |
| 9. | Receipt of reports on calculation, etc. of the amounts of performance bonds of small-amount overseas remittance business entities under Article 17-2 (4). |
| (5) | The authority of the Minister of Economy and Finance concerning the following matters pursuant to Article 23 (1) of the Act shall be entrusted to the heads of foreign exchange agencies: <Amended by Presidential Decree No. 24727, Sep. 17, 2013; Presidential Decree No. 25818, Dec. 9, 2014; Presidential Decree No. 28145, Jun. 27, 2017> |
| 1. | Reporting on methods under subparagraphs 1 or 3 of Article 16 of the Act (limited to matters publicly notified by the Minister of Economy and Finance); |
| 2. | Reporting on capital transactions under Article 18 of the Act (limited to matters publicly notified by the Minister of Economy and Finance); |
| 3. | Warnings, suspension of, or restrictions on related foreign exchange transactions, payments or receipt (limited to where credit card companies under the Specialized Credit Financial Business Act do so to the card members) under Article 19 of the Act, and holding hearings under paragraph (3) of the same Article; |
| 4. | Request for a report made under Article 20 (1) of the Act (limited to cases necessary to handle any business entrusted under this paragraph). |
| (6) | Where the Commissioner of the Korea Customs Service and the Financial Services Commission respectively take measures to issue warnings or suspend transactions in accordance with Article 19 (1) and (2) of the Act or to impose administrative fines in accordance with Article 32 (1) through (4) of the Act, as the same party violates two or more matters provided for in Articles 15 through 18 of the Act, the agency designated by the Minister of Economy and Finance may take such measures together, notwithstanding paragraphs (1) and (2). <Amended by Presidential Decree No. 28145, Jun. 27, 2017> |
| (7) | Where a person delegated or entrusted with authority pursuant to paragraphs (1) through (5) intends to determine standards for handling delegated or entrusted business, he/she shall consult with the Minister of Economy and Finance in advance. |
| Article 38 (Permission by Electronic Documents) |
| (1) | The Minister of Economy and Finance may grant permission or authorization, give notices or notification by means of electronic documents pursuant to Article 24 (1) of the Act, using a computer network of foreign exchange information concentration agency or other computer networks designated by the Minister of Economy and Finance, and may order to make a report, file an application, give an account, notify and submit data by means of electronic document as prescribed in Article 24 (2) of the Act. |
| (2) | The Minister of Economy and Finance may determine matters concerning the standard form, methods, and procedures, etc. necessary when submitting documents or data pursuant to paragraph (1) by means of electronic documents. |
| (3) | Where documents or data of permission, etc. are submitted by means of electronic documents pursuant to paragraph (1), matters concerning the validity, receipt time, etc. of such electronic documents shall be as prescribed by the Act on Promotion of Information and Communications Network Utilization and Information Protection, Etc. |
| Article 39 (Relay, Concentration, Exchange and Analysis of Data on Foreign Exchange Transactions) |
| (1) | The Minister of Economy and Finance may designate a foreign exchange information concentration agency or an agency which analyzes data on foreign exchange transactions, payments, or receipt (hereinafter referred to as "foreign exchange information analysis agency") pursuant to Article 25 (2) of the Act, and shall consider the following matters for designation: |
| 1. | Such agencies shall be equipped with a system capable of collecting foreign exchange information by the method of connecting a foreign exchange computer network with that of foreign exchange agencies; |
| 2. | Such agencies shall have not less than five professionals with capabilities to prepare and analyze foreign exchange statistics. |
| (2) | Foreign exchange agencies, etc. shall, after conducting business, such as foreign exchange transactions, payment or receipt, notify a foreign exchange information concentration agency of its details, and a foreign exchange information concentration agency may furnish a foreign exchange information analysis agency with data on foreign exchange transactions stipulated by the standard for carrying on business under paragraph (4). |
| (3) | The head of a foreign exchange information concentration agency shall formulate technical and physical security measures against illegal access to the foreign exchange information computer system by a third party or modification, damage, destruction or other danger to stored information, and the head of a foreign exchange information analysis agency shall establish security measures for prevention, etc. of the outflow of and damage to foreign exchange information. |
| (4) | The Minister of Economy and Finance may determine the operating standards for a foreign exchange information concentration agency and a foreign exchange information analysis agency and may have a foreign exchange information concentration agency and a foreign exchange information analysis agency establish detailed operating standards. |
| (5) | Where the head of a foreign exchange information concentration agency and the head of a foreign exchange information analysis agency have formulated detailed operating standards for management pursuant to paragraph (4), they shall promptly notify the Minister of Economy and Finance of such details. |
| (6) | The Minister of Economy and Finance may request foreign exchange agencies, etc. to submit data necessary for the swift concentration of information on foreign exchange transactions and for confirmation as to whether the concentrated data is true and correct, etc. to the head of a foreign exchange information concentration agency. |
| (7) | Where the Minister of Economy and Finance acknowledges, the head of a foreign exchange information analysis agency may request a foreign exchange information concentration agency to supply data necessary for analyzing foreign exchange information. |
| (8) | The Minister of Economy and Finance may provide subsidies to cover necessary expenses within budgetary limits in relation to performance of the affairs by a foreign exchange information analysis agency. |
| Article 39-2 (Management of Personally Identification Information) |
| (1) | Where inevitable to conduct the following affairs, the Minister of Economy and Finance (including the head of an agency who has been delegated or entrusted with the authority of the Minister of Economy and Finance pursuant to Article 37) may process data that include the resident registration number, passport number or foreign registration number (hereinafter in this Article referred to as "resident registration number, etc.") referred to in subparagraph 1, 2 or 4 of Article 19 of the Enforcement Decree of the Personal Information Protection Act: <Amended by Presidential Decree No. 24225, Dec. 12, 2012; Presidential Decree No. 28145, Jun. 27, 2017> |
| 1-2. | Affairs concerning the registration of foreign exchange business, report on the alteration or discontinuance thereof, and authorization for the conclusion of a contract with a foreign financial institution referred to in Article 8 (1) and (3) through (5) of the Act; |
| 3. | Affairs concerning the supervision of business and regulation of soundness, etc. referred to in Article 11 of the Act; |
| 6. | Affairs concerning report on export and import of means of payment, etc. referred to in Article 17 of the Act; |
| 8. | Affairs concerning warnings and the suspension of transactions, etc. referred to in Article 19 of the Act; |
| 11. | Affairs concerning confiscation and collection in lieu of confiscation referred to in Article 30 of the Act. |
| (2) | Where inevitable to make confirmation for business purposes referred to in the main sentence of Article 10 (1) of the Act, a foreign exchange agency, etc. may process data including the resident registration number, etc. <Amended by Presidential Decree No. 28145, Jun. 27, 2017> |
[This Article Newly Inserted by Presidential Decree No. 23488, Jan. 6, 2012]
| Article 39-3 (Re-Examination of Regulations) |
The Minister of Economy and Finance shall examine the appropriateness of the following matters every three years from each base date specified in the following subparagraphs (referring to the period that ends on the day before the base date of every third year) and take measures for improvement, etc.:
| 1. | Registration of foreign exchange business referred to in Article 13: January 1, 2014; |
| 2. | Authorization, etc. of foreign exchange brokerage referred to in Article 18: January 1, 2014. |
[This Article Newly Inserted by Presidential Decree No. 25050, Dec. 30, 2013]
| Article 40 (Penalty Provisions) |
| (1) | "Amount prescribed by Presidential Decree" in Article 29 (1) 3 of the Act means the amount in the following subparagraphs: <Amended by Presidential Decree No. 23041, Jul. 25, 2011; Presidential Decree No. 27038, Mar. 22, 2016; Presidential Decree No. 28145, Jun. 27, 2017> |
| (2) | "Amount prescribed by Presidential Decree" in Article 29 (1) 4 of the Act means 30 thousand U.S. dollars. <Newly Inserted by Presidential Decree No. 27184, May 31, 2016; Presidential Decree No. 28145, Jun. 27, 2017> |
| Article 41 (Criteria for Imposition of Administrative Fines) |
The criteria of imposition of administrative fines referred to in Article 32 of the Act shall be listed as attached Table 4. [This Article Newly Inserted by Presidential Decree No. 25818, Dec. 9, 2014]
ADDENDUM
This Decree shall enter into force on February 4, 2009.
ADDENDA <Presidential Decree No. 21518, May 29, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 1, 2009.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 22493, Nov. 15, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 18, 2010.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 23041, Jul. 25, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on August 1, 2011: Provided, That the amended provision of subparagraph 1 of Article 14 shall enter into force on March 2, 2012. Article 2 (Transitional Measures due to Citation of Other Statutes)
"NongHyup Bank" referred to in the amended provision of subparagraph 2 of Article 21-2 shall be construed as "credit business division of the National Agricultural Cooperatives Federation" until March 1, 2012. Article 3 (Special Cases concerning Methods of Calculating Balance of Non-Deposit Liabilities in Foreign Currency, etc.)
Notwithstanding the amended provision of Article 21-4, the balance of non-deposit liabilities in foreign currency, etc. in the business year in which the date this Decree enters into force falls shall be calculated according to the following formula, and levies imposed in the business year in which the date this Decree enters into force falls shall be calculated on a pro rata basis for a period starting from the date this Decree enters into force to the date on which the business year in which the enforcement date of this Decree falls ends: The balance of non-deposit liabilities in foreign currency, etc. = An aggregate amount of the daily balance of non-deposit liabilities in foreign currency, etc. for a period starting from the date this Decree enters into force to the date on which the business year in which the enforcement date of this Decree falls ends / number of days from the date this Decree enters into force to the date on which the business year in which the enforcement date of this Decree falls.
ADDENDA <Presidential Decree No. 23488, Jan. 6, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Article 2 Omitted.
ADDENDA <Presidential Decree No. 24225, Dec. 12, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Calculation of Macro-Prudential Stability Levies)
| (1) | The amended provisions of Article 21-4 (2) and attached Table 1 shall begin to apply to the portions of charges to be paid in the business year of 2013. |
| (2) | Where the amount subtracted from the balance of non-deposit liabilities in foreign currency, etc. is calculated by applying the amended provisions of attached Table 1, an increase or decrease in the daily average balance of foreign currency deposits received in the business year of 2013 in comparison with the preceding business year shall be deemed zero. |
ADDENDA <Presidential Decree No. 24441, Mar. 23, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 24727, Sep. 17, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Joint Inspections)
The amended provisions of Article 35 (9), (10), and (12) through (14) shall begin to apply where the Governor of the Financial Supervisory Service or the Commissioner of the Korea Customs Service conducts an inspection under Article 20 (3) of the Act.
ADDENDUM <Presidential Decree No. 25050, Dec. 30, 2013>
This Decree shall enter into force on January 1, 2014. (Proviso Omitted.)
ADDENDA <Presidential Decree No. 25818, Dec. 9, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2015.
Article 2 (Applicability to Extension of Claims Recovery Period)
The amended provisions of Article 12 (2) shall also apply to claims for which the extension of the recovery period is not allowed under paragraph (3) of the same Article, as the claims which do not elapse one year and six months from the date of maturity or the date of fulfillment of conditions for the claims as at the time this Decree enters into force.
ADDENDA <Presidential Decree No. 25945, Dec. 30, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of merger registered under Article 4 (6) of the Addenda to the Korea Development Act as wholly amended by Act No. 12663.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 26341, Jun. 30, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2015.
Article 2 (Applicability to Persons Liable to Pay Macro-Prudential Stability Levies)
The amended provisions of subparagraph 7 of Article 21-2 shall begin to apply to the business year in which the enforcement date of this Decree falls. In such cases, for macro-prudential stability levies in the business year of 2015, the same provisions shall apply to a period from July 1, 2015 to the termination date of the business year of 2015. Article 3 (Applicability to Imposition Rates of Macro-Prudential Stability Levies)
The amended provisions of Article 21-3 shall begin to apply to the business year in which the enforcement date of this Decree falls: Provided, That the former provisions shall apply to imposition rates for a period from the commencement date of the business year of 2015 to June 30, 2015. Article 4 (Applicability to Calculation Methods of Balance of Non-Deposit Liabilities in Foreign Currency, etc.)
| (1) | The amended provisions of Article 21-4 and attached Table 1 shall begin to apply to the business year in which the enforcement date of this Decree falls: Provided, That the former provisions shall apply to the calculation of the balance of non-deposit liabilities in foreign currency, etc. for a period from the commencement date of the business year of 2015 to June 30, 2015. |
| (2) | Notwithstanding paragraph (1), where macro-prudential stability levies are calculated for foreign exchange agencies which perform roles to promote foreign exchange transactions only for a period from the commencement date of the business year of 2015 to June 30, 2015, the amount calculated under the amended provisions of Article 21-4 (2) 2 for the period from the commencement date of the business year of 2015 to June 30, 2015 shall be subtracted when the balance of non-deposit liabilities in foreign currency, etc. for a period from July 1, 2015 to the termination date of the business year of 2015 in accordance with the main sentence of Article 21-4 (2). |
ADDENDA <Presidential Decree No. 27038, Mar. 22, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 35 (3), (11) and (12) and 37 (1) and (3) shall enter into force on April 1, 2016. Article 2 (Transitional Measures concerning Supervision, etc. over Money Exchange Operators by Governor of the Bank of Korea)
| (1) | Dispositions taken by the Governor of the Bank of Korea against money exchange operators pursuant to the former provisions before this Decree enters into force shall be deemed to have been taken against the money exchange operators pursuant to the amended provisions of Article 35 or 37. |
| (2) | Registrations and reports filed by money exchange operators with the Governor of the Bank of Korea pursuant to the former provisions before this Decree enters into force shall be deemed registrations and reports filed with the Commissioner of the National Tax Service pursuant to the amended provisions of Article 37, respectively. |
Article 3 (Transitional Measures concerning Penalty Provisions and Administrative Fines)
Notwithstanding the amended provisions of Article 40, application of penalty provisions and administrative fines against violations committed before this Decree enters into force shall be governed by the former provisions. Article 4 Omitted.
ADDENDUM <Presidential Decree No. 27184, May 31, 2016>
This Decree shall enter into force on June 3, 2016.
ADDENDA <Presidential Decree No. 27556, Oct. 25, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on December 1, 2016.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 28145, Jun. 27, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 18, 2017.
Article 2 (Applicability to Method of Calculation of Remaining Balance of Non-Deposit Liabilities in Foreign Currency, etc.)
The amended provisions of the proviso to Article 21-4 (2) shall apply beginning with the levies for the business year commencing on and after January 1, 2017. Article 3 (Applicability to Administrative Dispositions)
The amended provisions of subparagraphs 1 and 2 (c) of attached Table 2 shall also apply to the administrative dispositions against violations committed before this Decree enters into force.
Article 4 (Transitional Measures concerning Requirements for Registration of Foreign Exchange Business)
Financial companies, etc. which have registered money exchange business as at the time this Decree enters into force pursuant to the previous Article 15 (1) but fail to meet the requirements for registration under the amended provisions of Article 13 (2), shall fulfill the requirements for registration of foreign exchange business pursuant to the amended provisions of Article 13 (2) by December 31, 2017. Article 5 (Transitional Measures concerning Requirements for Registration of Money Exchange Business)
Persons who have registered money exchange business as at the time this Decree enters into force pursuant to the former Article 15 (1) but fail to meet the requirements for registration under the amended provisions of Article 15 (2), shall fulfill the requirements for registration of money exchange business pursuant to the amended provisions of Article 15 (2) by December 31, 2017. Article 6 (Transitional Measures concerning Registration of Other Specialized Foreign Exchange Business)
If a person who has registered electronic payment settlement agency service under the Electronic Financial Transactions Act has registered foreign exchange business as at the time this Decree enters into force under the previous Article 13 (1), he/she shall be deemed to have registered other specialized foreign exchange business pursuant to the amended provisions of Article 15-5 (3): Provided, That he/she shall fulfill the requirements for registration pursuant to the amended provisions of Article 15-5 (3) by December 31, 2017. Article 7 Omitted.
ADDENDA <Presidential Decree No. 28211, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That Presidential Decrees amended by Article 8 of the Addenda, which were promulgated before this Decree enters into force but the enforcement dates of which have not arrived yet, shall enter into force on the enforcement date of the respective Decrees.
Articles 2 through 8 Omitted.
ADDENDA <Presidential Decree No. 29009, Jun. 26, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2018.
Article 2 Omitted.
ADDENDUM <Presidential Decree No. 29787, May 28, 2019>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 30107, Oct. 8, 2019>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Administrative Dispositions)
The amended provisions of subparagraph 1 (e) (iii) of attached Table 3-2 shall also apply to the administrative dispositions against violations committed before this Decree enters into force.