Statutes of the Republic of Korea

No. 202326
Promulgation Date 2023-07-04
Ministry of Finance and Economy

ALL

CHAPTER I GENERAL PROVISIONS

Article 1-1 (Purpose)

Article 1-2 (Definitions)

Article 1-3 (Recovery of Debts)

Article 1-4 (Processing Period regarding Registration)

CHAPTER II FOREIGN EXCHANGE AGENCIES

Section 1 Foreign Exchange Banks

Article 2-1 (Registration and Modification of Foreign Exchange Services)

Article 2-1-2 (Payments and Receipts)

Article 2-2 (Purchase of Foreign Exchange)

Article 2-3 (Sale of Foreign Exchange)

Article 2-4 (Purchase and Sale of Foreign Exchange from and to Foreign Exchange Banks)

Article 2-4-2 (Foreign Exchange Margin Transaction)

Article 2-5 (Borrowing of Foreign Currency and Issuance of Securities)

Article 2-6 (Loans)

Article 2-6-2 (Deposits and Trusts)

Article 2-7 (Purchase and Sale of Loan Receivables)

Article 2-7-2 (Issuance of Means of Foreign Payment)

Article 2-8 (Guarantees)

Article 2-9 (Classification of Foreign Exchange Positions)

Article 2-9-2 (Limits on Foreign Exchange Positions)

Article 2-10 (Establishment and Operation of Offshore Account)

Article 2-10-2 (Derivative Transactions)

Article 2-11 (Domestic Branch Offices and Business Offices of Foreign Banks)

Article 2-11-2 (Non-Deposit Foreign Currency Liabilities)

Section 2 Other Foreign Exchange Agencies

Article 2-12 (Foreign Exchange Services of Other Foreign Exchange Agencies)

Article 2-13 (Postal Service Agencies)

Article 2-14 (Investment Traders)

Article 2-15 (Investment Broker) Deleted.

Article 2-16 (Foreign Exchange Broker) Deleted.

Article 2-17 (Collective Investment Manager) Deleted.

Article 2-18 (Discretionary Investment Company) Deleted.

Article 2-19 (Trust Business Company) Deleted.

Article 2-20 (Insurance Companies)

Article 2-21 (Mutual Savings Banks)

Article 2-22 (Specialized Credit Financial Company)

Article 2-22-2 (Electronic Payment Settlement Agencies) Deleted.

Article 2-23 (Merchant Banks)

Article 2-23-2 (Declaration of Other Foreign Exchange Agencies)

Article 2-23-3 (Non-Deposit Foreign Currency Liabilities)

Article 2-24 (Provisions to Be Applied Mutatis Mutandis)

Section 3 Foreign Exchange Services of the Bank of Korea

Article 2-25 Foreign Exchange Services of the Bank of Korea

Article 2-26 (Commissioning of Brokerage of Foreign Exchange Services by the Bank of Korea)

Article 2-27 (Intervention in Foreign Exchange Market and Management of Foreign Currency Reserves by the Bank of Korea)

Section 4 Currency Exchange Operators among Professional Foreign Exchange Dealers

Article 2-28 (Registration of Currency Exchange Services)

Article 2-29 (Business Affairs of Currency Exchange Operators)

Section 5 Small-Sum Overseas Remittance Business Entities among Professional Foreign Exchange Dealers

Article 2-30 (Registration of Small-Sum Overseas Remittance Business)

Article 2-31 (Business Affairs of Small-Sum Overseas Remittance Business Entities)

Article 2-32 (Criteria for Safety of Small-Sum Overseas Remittance Business)

Article 2-33 (Specification of Terms and Conditions)

Article 2-34 (Establishment or Amendment of Terms and Conditions)

Article 2-35 (Deposit of Performance Bond)

Article 2-36 (Procedures for Payment of Performance Bond)

Article 2-37 (Procedures for Return of Performance Bond)

Section 6 Professional Foreign Exchange Dealers Who Have Other Professional Foreign Exchange Services Registered

Article 2-38 (Registration of Other Professional Foreign Exchange Services)

Article 2-39 (Scope of Other Professional Foreign Exchange Services)

Section 7 Foreign Exchange Brokers

Article 2-40 (Authorization for Foreign Exchange Brokerage)

Article 2-41 (Scope of Foreign Exchange Brokerage)

Article 2-42 (Supervision of Business Affairs)

CHAPTER III ENTRUSTMENT AND BROKERAGE, AND NEW BUSINESS REGULATORY EXPEDITED REVIEW AND EXEMPTION SYSTEM

Section 1 Entrustment and Brokerage of Business Affairs Related to Purchase and Sale of Foreign Exchange and Payment

Article 3-1 (Entrustment of Business Affairs Related to Purchase and Sale of Foreign Exchange)

Article 3-2 (Entrustment of Business Affairs Related to Payment)

Article 3-2-2 (Entrustment of Part of Business Affairs Related to Payment by Foreign Exchange Banks to Non-Financial Companies)

Article 3-2-3 (Entrustment of Business Affairs Related to Payment to Nonghyup Bank and Suhyup Bank)

Article 3-3 (Brokerage of Business Affairs Related to Payment)

Section 2 New Business Regulatory Expedited Review and Exemptions

Article 3-4 (New Business Regulatory Expedited Review and Exemption System)

CHAPTER IV PAYMENT AND RECEIPT

Article 4-1 (Scope of Application)

Article 4-2 (Procedures for Payment)

Article 4-3 (Exceptions to Payment Procedures by Residents)

Article 4-4 (Payments by Non-Residents or Foreign Residents)

Article 4-5 (Procedures for Payment of Overseas Travel Expenses)

Article 4-6 (Payment Procedures for Overseas Relocation Costs)

Article 4-7 (Procedures for Export of Domestic Property by Overseas Koreans)

Article 4-8 (Notification to Commissioner of the National Tax Service)

CHAPTER V METHOD OF PAYMENT

Section 1 Common Provisions

Article 5-1 (Scope of Application)

Article 5-2 (Exceptions to Declaration)

Article 5-3 (Declaration Procedures)

Section 2 Method of Payment, etc. through Account Credits or Debits, Including Offsetting

Subsection 1 Offsetting

Subsection 1 Offsetting

Subsection 1 Offsetting

Article 5-4 (Declaration)

Subsection 2 Running Account

Article 5-5 (Declaration to Head of Designated Foreign Exchange Bank)

Article 5-6 (Crediting and Debiting Items and Recording Time)

Article 5-7 (Settlement)

Section 3 Method of Payment Exceeding Period Determined by Minister of Economy and Finance

Article 5-8 (Declaration)

Article 5-9 (Obligation to Perform Corresponding Imports and Exports)

Section 4 Method of Payment Including Third-Party Payment

Article 5-10 (Declaration)

Section 5 Payment Method Not Conducted Through Foreign Exchange Banks

Article 5-11 (Declaration)

CHAPTER VI EXPORT AND IMPORT OF MEANS OF PAYMENT

Article 6-1 (Scope of Application)

Article 6-2 (Declaration)

Article 6-3 (Making Declaration to Head of Competent Customs Office)

Article 6-4 (Import or Export Restrictions by Head of Customs Office)

CHAPTER VII CAPITAL TRANSACTIONS

Section 1 Common Provisions

Section 1 Common Provisions

Article 7-1 (Scope of Application)

Article 7-2 (Transactions Not Requiring Declaration)

Article 7-3 (Payment Procedures)

Article 7-4 (Procedures for Declaration)

Article 7-5 (Acceptance of Provisional Declaration of Capital Transaction)

Section 2 Capital Transactions under Deposit and Trust Agreements

Subsection 1 Domestic Deposit and Domestic Trust

Subsection 1 Domestic Deposit and Domestic Trust

Subsection 1 Domestic Deposit and Domestic Trust

Article 7-6 (Transaction Procedures)

Article 7-7 (Types of Accounts) Deleted.

Article 7-8 (Deposit in Accounts)

Article 7-9 (Disposal of Accounts)

Article 7-10 (Confirmation)

Subsection 2 Overseas Deposits and Trusts

Article 7-11 (Transaction Procedures)

Article 7-12 (Reporting)

Section 3 Capital Transactions under Cash Loan Agreements and Debt Guarantee Agreements

Subsection 1 Cash Loan Agreement

Article 7-13 (Transactions Exempt from Declaration Obligation)

Article 7-14 (Foreign Currency Borrowing by Residents)

Article 7-14-2 (Foreign Currency Borrowing by Local Subsidiaries)

Article 7-15 (Borrowing of Korean Won Funds by Residents)

Article 7-16 (Loans Provided by Residents to Non-Residents)

Subsection 2 Debt Guarantee Agreements

Article 7-17 (Transactions Not Requiring Declarations)

Article 7-18 (Reporting to Heads of Foreign Exchange Banks)

Article 7-19 (Declarations to Governor of Bank of Korea)

Section 4 Capital Transactions under Agreements on Purchase and Sale of Means of Foreign Payment or Claims or Service Agreements

Article 7-20 (Transactions Between Residents)

Article 7-21 (Transactions between Residents and Non-Residents)

Section 5 Issuance of Securities

Subsection 1 Common Provisions

Article 7-22 (Issuance of Securities by Residents)

Article 7-23 (Issuance of Securities by Non-Residents)

Article 7-23-2 (Inter-Exchange Movement of Listed Securities)

Subsection 2 Procedures for Issuance of Securities by Non-Residents in the Republic of Korea

Article 7-24 (Declarations and Use of Proceeds from Issuance)

Article 7-25 (Non-Resident Korean Won Accounts for Securities Issuance) Deleted.

Article 7-26 (External Accounts for Securities Issuance) Deleted.

Article 7-27 (Reporting)

Article 7-28 (Purchase and Sale of Bonds for Overseas Sale)

Subsection 3 Procedures for Issuance of Korean Won Securities in Foreign Countries

Article 7-29 (Issuance of Korean Won Securities by Residents)

Article 7-30 (Issuance of Korean Won Securities by Non-Residents)

Section 6 Acquisition of Securities

Subsection 1 Common Provisions

Article 7-31 (Acquisition of Securities by Residents)

Article 7-32 (Acquisition of Securities by Non-Residents)

Subsection 2 Foreign Securities Investment Procedures for Residents

Article 7-33 (Objects of Investment)

Article 7-34 (Investment-Only Foreign Currency Accounts for Foreign Securities)

Article 7-35 (Reports)

Subsection 3 Procedures for Foreign Investors Investing in Korean Won Securities

Article 7-36 (Scope of Application)

Article 7-37 (Investment-Only Accounts)

Article 7-38 (Investment-Only Foreign Currency Accounts of Investment Brokers)

Article 7-39 (Reports)

Section 7 Derivative Transactions

Article 7-40 (Procedures of Transactions)

Article 7-41 (Procedures of Settlement)

Article 7-42 (Investment-Only Foreign Currency Accounts)

Section 8 Other Capital Transactions

Subsection 1 Other Capital Transactions Denominated in Foreign Currency between Residents

Article 7-43 (Scope of Application)

Subsection 2 Other Capital Transactions between Residents and Non-Residents

Article 7-44 (Scope of Application)

Article 7-45 (Transactions Not Requiring Declarations)

Article 7-46 (Declarations)

Subsection 3 Domestic Currency-Denominated Capital Transactions Between Non-Residents

Article 7-47 (Scope of Application)

Article 7-48 (Declarations)

CHAPTER IX DIRECT INVESTMENT AND REAL ESTATE ACQUISITION

Article 9-1 (Declaration)

Section 1 Foreign Direct Investment

Subsection 1 Common Provisions

Article 9-1-2 (Foreign Direct Investment Mechanisms)

Article 9-2 (Examination of Investment Business) Deleted.

Article 9-2-2 (Obligation of the Chairperson and President of the Export-Import Bank of Korea to Submit Reports)

Article 9-3 (Support for Foreign Direct Investment)

Article 9-4 (Repatriation of Investment)

Subsection 2 Foreign Direct Investment by Residents Other Than Financial Institutions

Article 9-5 (Foreign Direct Investment Notification)

Article 9-6 (Liquidation of Foreign Direct Investment Business)

Article 9-7 (Post Management by Notification Receipt Agencies) Deleted.

Article 9-8 (Investigation Request to the Heads of Local Diplomatic Missions)

Article 9-9 (Post Management)

Subsection 3 Foreign Direct Investment in Financial/Insurance Business

Article 9-10 (Foreign Direct Investment in Financial/Insurance Business by Financial Institutions) Deleted.

Article 9-11 (Foreign Direct Investment in Financial/Insurance Business by Residents Other Than Financial Institutions) Deleted.

Article 9-11-2 (Foreign Direct Investment in Financial/Insurance Business through Local Subsidiaries Engaging in Non-Financial/Insurance Business) Deleted.

Article 9-12 (Foreign Direct Investment of Local Subsidiary Financial Institutions in Other Companies) Deleted.

Article 9-13 (Procedures of Business Discontinuation by Local Subsidiary Financial Institutions) Deleted.

Article 9-14 (Procedures for Changing Details of Declaration by Local Subsidiary Financial Institutions) Deleted.

Article 9-15 (Reports of Local Subsidiary Financial Institutions) Deleted.

Article 9-15-2 (Foreign Direct Investment in Offshore Financial Companies)

Section 2 Overseas Branches of Domestic Companies

Subsection 1 Common Provisions

Subsection 1 Common Provisions

Subsection 1 Common Provisions

Article 9-16 (Scope of Application)

Article 9-17 (Classification of Overseas Branches)

Subsection 2 Overseas Branches of Non-Financial Institutions

Article 9-18 (Declaration on Establishment)

Article 9-19 (Operating Funds of Overseas Branch Offices in Foreign Countries)

Article 9-20 (Expenses of Overseas Business Offices)

Article 9-21 (Operating Costs of Overseas Branch Offices of Domestic Airline or Shipping Companies)

Article 9-22 (Business Activities of Overseas Branch Offices)

Article 9-23 (Disposition of Net Income Upon Settlement of Accounts of Overseas Branch Offices)

Article 9-24 (Closure of Overseas Branches)

Article 9-25 (Post-Management of Overseas Branches)

Subsection 3 Overseas Branch of Financial Institutions Deleted.

Article 9-26 (Declaration of Establishment) Deleted.

Article 9-27 (Procedures of Closure) Deleted.

Article 9-28 (Operating Funds of Overseas Branch Offices) Deleted.

Article 9-29 (Transactions with Overseas Branch Offices of Foreign Exchange Bank) Deleted.

Article 9-30 (Business Activities of Overseas Branch Offices) Deleted.

Article 9-31 (Provisions Applicable Mutatis Mutandis) Deleted.

Section 3 Domestic Branches of Foreign Companies

Article 9-32 (Scope of Application and Classification)

Article 9-33 (Declaration of Establishment and Modification)

Article 9-34 (Introduction of Operating Funds)

Article 9-35 (Overseas Remittance of Net Income upon Account Closing)

Article 9-36 (Disbursement of Surplus Funds Arising from Operating Fund Reduction)

Article 9-37 (Closure of Domestic Branch)

Section 4 Acquisition of Overseas Real Property by Residents

Article 9-38 (Review of Requirements for Acceptance of Declaration)

Article 9-39 (Procedures for Acceptance of Declaration)

Article 9-40 (Post-Management)

Article 9-41 (Sale of Overseas Housing) Deleted.

Section 5 Acquisition of Domestic Real Property by Non-Residents

Article 9-42 (Procedures for Declaration)

Article 9-43 (Payment of Proceeds from Sale)

CHAPTER X SUPPLEMENTARY PROVISIONS

Section 1 Reporting

Article 10-1 (Reporting by the Head of a Foreign Exchange Agency)

Article 10-2 (Reporting by the Governor of the Bank of Korea)

Article 10-3 (Collection of Reports by the Governor of the Bank of Korea)

Article 10-4 (Deadline for Submission of Report)

Article 10-5 (Forms)

Article 10-6 (Report on Credit Cards)

Section 2 Inspections

Article 10-7 (Scope of Inspection Objects)

Article 10-8 (Establishment of Inspection Standards)

Section 3 Post-Management of Foreign Exchange Transactions

Article 10-9 (Procedures of Post-Management)

Article 10-10 (Submission of Data)

Article 10-11 (Designation of Foreign Exchange Banks)

Article 10-12 (Notification to the Commissioner of the National Tax Service)

Section 4 Miscellaneous

Article 10-13 (Standards and Procedures for Handling Entrusted Business)

Article 10-14 (Designation of Foreign Exchange Information Aggregation Agency)

Article 10-15 (Supplemental Provisions)

Article 10-15-2 (Re-Examination Period)

Section 5 Foreign Currency Soundness Council

Article 10-16 (Convening Foreign Currency Soundness Council)

Article 10-17 (Presentation of Agenda to Council)

Article 10-18 (Submission of Materials to Council)

Article 10-19 (Advisory Organization for International Financial Policy)

Article 10-20 (Selection of Foreign Exchange Agency for Facilitating Foreign Exchange Transactions)

Article 10-21 (Liquidation)

Article 10-22 (Seoul Foreign Exchange Committee)

Article 10-23 (Deliberative Committee for Foreign Exchange System Development)

ADDENDA <No. 2002-12, Jul. 2, 2002>

ADDENDA <No. 2005-13, Jul. 1, 2005>

ADDENDA <No. 2005-25, Jan. 1, 2006>

ADDENDA <No. 2006-26, Aug. 3, 2006>

ADDENDA <No. 2007-13, Feb. 26, 2007>

ADDENDA <No. 2007-62, Dec. 17, 2007>

ADDENDUM <No. 2008-6, Jun. 2, 2008>

ADDENDA <No. 2008-11, Jul. 25, 2008>

ADDENDA <No. 2009-2, Feb. 3, 2009>

ADDENDUM <No. 2009-18, Sep. 30, 2009>

ADDENDA <No. 2010-10, May 19, 2010>

ADDENDA <No. 2010-14, Jul. 9, 2010>

ADDENDUM <No. 2010-17, Aug. 20, 2010>

ADDENDUM <No. 2012-5, Apr. 16, 2012>

ADDENDUM <No. 2012-16, Dec. 5, 2012>

ADDENDA <No. 2013-21, Dec. 19, 2013>

ADDENDA <No. 2014-18, Oct. 31, 2014>

ADDENDA <No. 2015-7, Mar. 31, 2015>

ADDENDUM <No. 2015-12, Jun. 29, 2015>

ADDENDA <No. 2016-6, Mar. 22, 2016>

ADDENDUM <No. 2016-26, Oct. 5, 2016>

ADDENDUM <No. 2017-19, Jun. 29, 2017>

ADDENDA <No. 2017-40, Dec. 28, 2017>

ADDENDUM <No. 2018-12, May 1, 2018>

ADDENDUM <No. 2018-16, Jul. 1, 2018>

ADDENDUM <No. 2018-28, Dec. 24, 2018>

ADDENDUM <No. 2019-12, May 3, 2019>

ADDENDUM <No. 2019-13, May 28, 2019>

ADDENDUM <No. 2019-20, Oct. 8, 2019>

ADDENDUM <No. 2020-30, Oct. 30, 2020>

ADDENDUM <No. 2021-11, Jun. 18, 2021>

ADDENDUM <No. 2021-22, Sep. 9, 2021>

ADDENDUM <No. 2021-37, Dec. 29, 2021>

ADDENDUM <No. 2022-11, Apr. 11, 2022>

ADDENDUM <No. 2022-11, Apr. 11, 2022>