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
Presidential Decree No. 30496, Mar. 3, 2020
Presidential Decree No. 30509, Mar. 3, 2020
Presidential Decree No. 31134, Nov. 3, 2020
Presidential Decree No. 31380, Jan. 5, 2021
Presidential Decree No. 31723, jun. 8, 2021
Presidential Decree No. 31976, Sep. 14, 2021
Presidential Decree No. 33616, Jul. 4, 2023
Presidential Decree No. 33777, Oct. 4, 2023
Presidential Decree No. 33913, Dec. 12, 2023
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 means of payment, precious metals, securities, etc., which are conducted in direct relation to transaction, payment or receipt under subparagraphs 1 through 3 of that 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 Services) |
"Services ... prescribed by Presidential Decree" in Article 3 (1) 16 (e) of the Act means the services falling under each of the following subparagraphs: <Amended on 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; |
| 4. | Other services incidental to the affairs referred to in Article 3 (1) 16 (a) through (d) of the Act and subparagraphs 1 through 3 of this Article. |
| Article 7 (Financial Companies) |
"Persons ... who are prescribed by Presidential Decree" in Article 3 (1) 17 of the Act means the following persons: <Amended on May 29, 2009; Mar. 23, 2013; Jun. 30, 2015; Mar. 22, 2016; Jul. 26, 2017; Jun. 26, 2018; May 28, 2019; Oct. 4, 2023> | 1-2. | Deleted; <Dec. 30, 2014> |
| 4. | Postal service agencies designated by the Minister of Science and ICT; |
| 5. | Deleted; <Jun. 27, 2017> |
| 7. | The Korea Ocean Business Corporation established under the Korea Ocean Business Corporation Act; |
| 8. | A foreign financial institution (referring to an entity established pursuant to statutes or regulations of a foreign country to engage in financial business in the foreign country; hereinafter the same shall apply) that falls under such type of business and meets such standards for financial soundness, as determined and publicly notified by the Minister of Economy and Finance. |
[Title Amended on Jul. 25, 2011]
| Article 8 (Foreign Direct Investment) |
| (1) | "Which are prescribed by Presidential Decree" in Article 3 (1) 18 (a) of the Act means the following: |
| 1. | An investment in which stocks or investment equities acquired to take part in the management of a corporation established under foreign laws (including a corporation in the course of incorporation; hereinafter referred to as "foreign corporation") 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 corporation (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 corporation 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 corporation already invested pursuant to subparagraph 1 or 2; |
| 4. | Loans with a maturity of not less than one year made to a relevant foreign corporation by a resident who has invested therein pursuant to subparagraphs 1 through 3. |
| (2) | "Which is prescribed by Presidential Decree" in Article 3 (1) 18 (b) of the Act means the payment of each of the following funds: |
| 1. | Costs of establishing a branch office 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 corporation 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) | "Which are prescribed by Presidential Decree" in Article 3 (1) 19 (e) of the Act means the following: |
| 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 services transactions and expenses directly incidental thereto. |
| (2) | "Transaction or act ... prescribed by Presidential Decree" in Article 3 (1) 19 (f) of the Act means each of the following transactions or acts: |
| 1. | Transactions not falling under Article 3 (1) 19 (a) of the Act, and related to the accrual, modification, or extinguishment of claims arising from lease-hold, provision of collateral, 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, alteration, or extinction of claims denominated or payable in foreign currency in cases of transactions between residents; |
| 2. | Transactions on the accrual, modification, or extinguishment of claims arising from any inheritance, bequest, or gift between residents and non-residents or between residents: Provided, That for the said transactions shall be limited to transactions on the accrual, alteration, 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 extinguishment of claims denominated or payable in domestic currency; |
| 4. | Acquisition of foreign 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 extinguishment of claims between residents and non-residents (excluding export and import of goods and services transaction) or transaction on the creation, alteration, 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 instability levy under Article 11-2 of the Act (hereinafter referred to as "levy"). [This Article Newly Inserted on Jul. 25, 2011]
| Article 10 (Classification of Residents and Non-Residents) |
| (1) | Any of the following persons shall be deemed residents pursuant to Article 3 (2) of the Act: |
| 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 on 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 corporation, 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 cohabiting 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 or she shall publicly notify each of the following matters: <Amended on Jun. 27, 2017> |
| 1. | Where he or 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 or 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 or 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 or 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 or 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 on 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 that Article, he or she shall publicly notify such intention. |
| Article 12 Deleted. <Jun. 27, 2017> |
CHAPTER II FOREIGN EXCHANGE AGENCIES
| Article 13 (Registration of Foreign Exchange Services) |
| (1) | A person who intends to engage in foreign exchange services under the main clause of Article 8 (1) of the Act for business purposes shall file an application for registration with the Minister of Economy and Finance stating the following matters, together with the documents determined and publicly notified by the Minister of Economy and Finance, such as statement of financial position and an income statement: <Amended on Jun. 27, 2017; Jan. 5, 2021> |
| 2. | Locations of the head office and business offices in the Republic of Korea; |
| 3. | Scope of foreign exchange services; |
| 4. | Matters concerning capital, facilities and professional human resources; |
| 5. | Matters concerning executive officers. |
| (2) | A person who intends to file for registration under the main clause of Article 8 (1) of the Act shall meet the following requirements: <Amended on Oct. 4, 2023> |
| (a) | Its capital size and financial structure shall be adequate in light of the standards for financial soundness applied to the relevant financial company, etc. which are determined by the Financial Services Commission (referring to the Minister of the Interior and Safety, in cases of community credit cooperatives and the Federation under the Community Credit Cooperatives Act; and referring to the Minister of Oceans and Fisheries, in cases of the Korea Ocean Business Corporation under the Korea Ocean Business Corporation Act); |
| (b) | It shall be connected with an agency designated to intermediate, aggregate, and exchange data on foreign exchange transactions, payment, or receipt under Article 25 (2) of the Act (hereinafter referred to as "foreign exchange information aggregation agency") by means of a computer network; |
| (c) | It shall be equipped with data processing equipment to facilitate foreign exchange services and post-management thereof; |
| (d) | It shall secure at least two persons for each business office, who have at least two years of experience in foreign exchange services or who have completed training determined by the Minister of Economy and Finance; |
| 2. | In cases of a financial company, etc. referred to in subparagraph 8 of Article 7: |
| (a) | It shall conclude an agreement under which credit may be granted with a person referred to in Article 18 (4) 3 through 5 or a foreign financial institution which is a foreign exchange agency under the provisions, with the exception of the subparagraphs, of Article 14, as determined and publicly notified by the Minister of Economy and Finance; |
| (b) | An account for foreign currency in the name of the relevant financial company, etc. shall be opened at one or more of the following: A foreign exchange bank (referring to a financial company, etc. specified in subparagraph 1 of Article 14, which provide foreign exchange services specified in that subparagraph; hereinafter the same shall apply), a local subsidiary or overseas branch office of a foreign exchange bank that has its head office in the Republic of Korea, or a foreign financial institution; |
| (c) | An account for domestic currency in the name of the relevant financial company, etc. shall be opened at one or more foreign exchange banks; |
| (d) | It shall be connected with a foreign exchange information aggregation agency by means of a computer network. |
| (3) | A person who intends to engage in foreign exchange services pursuant to the main clause of Article 8 (1) of the Act may request the Minister of Economy and Finance to conduct a prior examination of all or part of the requirements prescribed in paragraph (2) before applying for registration under paragraph (1). <Newly Inserted on Nov. 3, 2020> |
| (4) | A person who intends to request a prior examination under paragraph (3) shall submit a request stating the details of the request for the prior examination to the Minister of Economy and Finance, together with the documents determined and publicly notified by the Minister of Economy and Finance. <Newly Inserted on Nov. 3, 2020> |
| (5) | Upon receipt of an application for registration under paragraph (1) or of a request for a prior examination under paragraph (3), the Minister of Economy and Finance may request the Governor of the Financial Supervisory Service under the Act on the Establishment of Financial Services Commission (hereinafter referred to as the "Governor of the Financial Supervisory Service") and the head of a foreign exchange information aggregation agency to confirm whether the requirements under paragraph (2) (limited to requirements a prior examination of which is requested in cases of a request for a prior examination under paragraph (3)) are satisfied. In such cases, the Governor of the Financial Supervisory Service and the head of the foreign exchange information aggregation 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 toward the period) from the date of receipt of the request for such confirmation. <Amended on Nov. 3, 2020> |
| (6) | Upon receipt of a request for a prior examination under paragraph (3), the Minister of Economy and Finance shall notify the person who has requested the prior examination of the results thereof within 20 days (Saturdays and holidays shall not be counted toward the period) from the date of receipt of the request: Provided, That where a person who has requested a prior examination before being notified of the results of examination of the request for a prior examination has applied for registration under paragraph (1), notification of the results of examination of the application for registration may substitute notification of the results of the examination of the request for a prior examination. <Newly Inserted on Nov. 3, 2020> |
| (7) | 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 on Jul. 25, 2011; Jun. 27, 2017; Nov. 3, 2020> |
| 1. | Where a person who has filed an application for registration is not a financial company, etc.; |
| 2. | Where the requirements for registration under paragraph (2) are not satisfied; |
| 3. | Where the documents submitted 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. |
| (8) | Where the Minister of Economy and Finance has accepted an application for registration under paragraph (7), he or she shall issue a certificate of registration to an applicant. <Amended on Jul. 25, 2011; Nov. 3, 2020> |
| (9) | "Financial company, etc., ... prescribed by Presidential Decree" in the proviso of Article 8 (1) of the Act means postal service agencies under subparagraph 4 of Article 7. <Amended on Jul. 25, 2011; Nov. 3, 2020> |
| Article 14 (Scope of Foreign Exchange Services) |
The scope of foreign exchange services of a financial company, etc. registered under Article 8 (1) of the Act (including financial companies, etc. referred to in the proviso of that paragraph; hereinafter referred to as "foreign exchange agency") shall be as follows: <Amended on May 29, 2009; Nov. 15, 2010; Jul. 25, 2011; Dec. 12, 2012; Dec. 30, 2014; Jun. 30, 2015; Mar. 22, 2016; Oct. 25, 2016; Jun. 27, 2017; Jun. 26, 2018> | 2. | Merchant banks established under the Financial Investment Services and Capital Markets Act: Foreign exchange services directly related to the business affairs of merchant banks: Provided, That the services related to deposits among Article 3 (1) 16 (c) and (d) of the Act shall be limited to the affairs classified as follows: |
| (a) | In cases of services prescribed in Article 3 (1) 16 (c) of the Act: Services related to deposits denominated or payable in a foreign currency in other foreign exchange agencies; |
| (b) | In cases of services prescribed in Article 3 (1) 16 (d) of the Act: Services related to deposits denominated or payable in a foreign currency in foreign financial institutions; |
| 4. | Other foreign exchange agencies: Services 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 services: |
| (a) | Purchase and sale of foreign currency bonds; |
| (b) | Issuance, and purchase and sale of foreign 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) | Deposit, cash loan, or guarantee denominated or payable in a foreign currency with residents; |
| (f) | Deposit, cash loan, or guarantee 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 Currency Exchange Services) |
| (1) | Any person who intends to engage in foreign exchange services as an occupation under Article 8 (3) 1 of the Act (hereinafter referred to as "currency exchange services") 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 on Jun. 27, 2017> |
| 2. | Locations of business offices; |
| 3. | Scope of currency exchange services; |
| 4. | Matters concerning executive officers (limited to where the applicant for registration is a corporation). |
| (2) | A person who intends to register his or her currency exchange services shall meet all of the following requirements: <Newly Inserted on Jun. 27, 2017> |
| 1. | Place of business required for running currency exchange services; |
| 2. | Data processing equipment determined and publicly notified by the Minister of Economy and Finance to facilitate currency exchange services and the post-management services 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 on Jul. 25, 2011; 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 any document received is 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 or she shall issue a certificate of registration to an applicant. <Amended on Jul. 25, 2011; Jun. 27, 2017> |
| Article 15-2 (Registration of Small-Amount Overseas Remittance Business) |
| (1) | A person who intends to engage in the foreign exchange services falling under Article 8 (3) 2 of the Act (hereinafter referred to as "small-sum 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-sum overseas remittance business and currencies to be handled; |
| 4. | Matters concerning the means of performing small-sum overseas remittance business; |
| 5. | Information on the accounts to be used for small-sum overseas remittance business (limited to the accounts opened at financial companies, etc. in the name of a person who intends to register small-sum overseas remittance business); |
| 6. | Matters concerning the foreign partners to be involved in the process of small-sum overseas remittance business; |
| 7. | Deleted; <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-sum overseas remittance business shall meet all of the following requirements: <Amended on Oct. 8, 2019> |
| 2. | He or she shall meet the criteria for financial soundness determined and publicly notified by the Minister of Economy and Finance; |
| 3. | His or her computer network shall be connected to a foreign exchange information aggregation agency; |
| 4. | He or 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-sum overseas remittance business and the post-management thereto; |
| 5. | He or she shall secure at least two persons who have served in the foreign exchange services 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 exchange information aggregation agency 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 certificate of registration to the applicant. |
| (6) | A person whose small-sum overseas remittance business is registered pursuant to Article 8 (3) 2 of the Act (hereinafter referred to as "small-sum overseas remittance business entity") shall manage his or 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 that subparagraph (hereafter in this Article referred to as "minimum equity capital"). |
| (7) | A small-sum 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. <Oct. 8, 2019> |
[This Article Newly Inserted on 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-sum 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 5,000 U.S. dollars, respectively; and the limit of accumulated annual amount of payment or receipt per customer 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 on Oct. 8, 2019> |
| (2) | A small-sum overseas remittance business entity shall pay money to customers or receive money from customers 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-sum 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 clause of paragraph (2). |
| (4) | A small-sum 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 on 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-sum overseas remittance business, a small-sum 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-sum 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-sum overseas remittance business is based. |
| (3) | A small-sum overseas remittance business entity, who intends to establish or modify the terms and conditions regarding the performance of small-sum overseas remittance business, shall make a declaration thereof 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-sum overseas remittance business entity to modify the terms and conditions referred to in paragraph (3). |
| (5) | Where a small-sum overseas remittance business entity establishes or modifies the terms and conditions, he or she shall publish it on his or her website and specify the terms and conditions when concluding contracts with his or her customers relating to small-amount remittance business. |
| (6) | A small-sum overseas remittance business entity shall establish procedures to reflect reasonable opinions or complaints filed by customers in connection with his or her business and to compensate for the losses in connection with small-sum overseas remittance business. |
| (7) | A small-sum 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 on Jun. 27, 2017]
| Article 15-5 (Registration of Other Professional Foreign Exchange Service) |
| (1) | "Foreign exchange services prescribed by Presidential Decree" in Article 8 (3) 3 of the Act means the foreign exchange services determined and publicly notified by the Minister of Economy and Finance as foreign exchange services directly related to the issuance and management of electronic currencies or electronic prepayment means, or the payment gateway services under the Electronic Financial Transactions Act (hereinafter referred to as "other professional foreign exchange services"). <Amended on May 28, 2019> |
| (2) | Persons eligible to register other professional foreign exchange services under the former part, with the exception of the subparagraphs, of Article 8 (3) of the Act shall be limited to those who have obtained permission for business issuing and managing electronic currencies, who have registered their business issuing and managing electronic prepayment means or their payment gateway with the Financial Services Commission pursuant to Article 28 of the Electronic Financial Transactions Act. <Amended on May 28, 2019> |
| (3) | Article 13 (excluding paragraph (7) 1) shall apply mutatis mutandis to the requirements and procedures for the registration of persons who intend to register other professional foreign exchange services. In such cases, "foreign exchange services under the main clause of Article 8 (1) of the Act" in the main clause of Article 13 (1) shall be deemed "other professional foreign exchange services," and "relevant financial companies, etc." in paragraph (2) 1 of that 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 payment gateway pursuant to the Electronic Financial Transactions Act". <Amended on May 28, 2019; Nov. 3, 2020> |
[This Article Newly Inserted on Jun. 27, 2017]
| Article 15-6 (Concurrent Operation of Currency Exchange Services) |
A person who intends to concurrently engage in currency exchange services, small-sum overseas remittance business, or other professional foreign exchange services shall register each services, respectively. In such cases, a person who intends to concurrently engage in at least two types of services among other professional foreign exchange services shall also register each of such affairs respectively. <Amended on May 28, 2019>
[This Article Newly Inserted on 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 on Dec. 9, 2014; Jun. 27, 2017; 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 filed for registration of a currency exchange services (hereinafter referred to as the "currency exchange operator"): Matters set forth in Article 15 (1) 1 through 3; |
| 3. | A small-sum overseas remittance business entity: Matters set forth in Article 15-2 (1) 1 through 6; |
| 4. | A person who has registered other professional foreign exchange services: 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 make a declaration of modifications of registered matters or the closure of foreign exchange services 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 on Jun. 27, 2017> |
| 1. | A foreign exchange agency; |
| 2. | A person who has registered foreign exchange services pursuant to Article 8 (3) of the Act (hereinafter referred to as "professional foreign exchange dealer"). |
| (3) | Deleted. <Oct. 8, 2019> |
| (4) | Deleted. <Oct. 8, 2019> |
| (5) | Deleted. <Oct. 8, 2019> |
| (6) | "If such authorization is prescribed by Presidential Decree" in Article 8 (5) of the Act means 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 on 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 on Jun. 27, 2017> |
| Article 17 (Standards for Services) |
Pursuant to Article 8 (6) of the Act, foreign exchange agencies and professional foreign exchange dealers shall perform services according to the standards in the following subparagraphs: <Amended on Jun. 27, 2017; May 28, 2019> | 1. | Foreign exchange agencies and professional foreign exchange dealers shall keep a detailed record of transactions and keep the relevant documents thereof; |
| 2. | Foreign exchange agencies and professional foreign exchange dealers, if they concurrently engage in business other than foreign exchange services, shall manage the relevant foreign exchange services (including accounting management thereof) separately from other affairs. In such cases, if any professional 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 professional foreign exchange services, he or she shall manage each business affair according to the following classification; |
| (a) | Where he or she concurrently engages in services prescribed in subparagraphs of Article 8 (3) of the Act: He or she shall manage each of them respectively according to the classification set forth in subparagraphs of that paragraph; |
| (b) | Where he or she concurrently engages in at least two types of services of other professional foreign exchange services: He or she shall manage each of them respectively according to the classification by services of the relevant other professional foreign exchange services; |
| 3. | Foreign exchange agencies shall establish and operate a comprehensive risk management system in order to efficiently manage business risks arising from dealing with foreign exchange services; |
| 4. | Foreign exchange agencies and professional 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 services. |
| Article 17-2 (Calculation of Amount of Performance Bond) |
| (1) | The amount of a performance bond to be deposited by a small-sum 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-sum overseas remittance business entity. |
| (2) | A small-sum 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 or she purchases a surety bond 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-sum overseas remittance business entity shall deposit the deficiency again within the period fixed by the Minister of Economy and Finance. |
| (4) | A small-sum 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 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 on Jun. 27, 2017]
| Article 17-3 (Payment of Performance Bond) |
| (1) | A person who has requested a small-sum 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-sum overseas remittance business entity is unable to perform the customer's request for payment due to the bankruptcy, business suspension, revocation of registration, or any other grounds equivalent thereto; |
| 2. | Where the small-sum overseas remittance business entity fails to perform the customer's request for payment, or where any damage occurs to the customer in the course of performing it (limited to where there is any agreement for damage compensation, reconciliation, final and conclusive judgment of the court, or any other decision with an effect equivalent thereto). |
| (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-sum overseas remittance business entity to a customer in accordance with the procedures determined by the Minister of Economy and Finance. |
[This Article Newly Inserted on Jun. 27, 2017]
| Article 17-4 (Return 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-sum overseas remittance business entity as determined by the Minister of Economy and Finance:
| 1. | Where the small-sum overseas remittance business entity has discontinued small-sum overseas remittance business; |
| 2. | Where the small-sum 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-sum 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-sum overseas remittance business entity during the period determined 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 on Jun. 27, 2017]
| Article 18 (Authorization for 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 on 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) | A person who intends to obtain authorization for foreign exchange brokerage shall meet the following requirements: <Amended on 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 or she shall be equipped with computerized facilities for conducting foreign exchange brokerage and reporting thereon; |
| 3. | That he or 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 or 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 or she fails to satisfy such standards, the Minister of Economy and Finance may request him or 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 follows: <Amended on Mar. 22, 2016; Jul. 4, 2023; Oct. 4, 2023> |
| 2. | The Government (only applicable 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 (limited to those which are foreign exchange agencies, in cases of brokerage of purchase and sale of means of domestic payment and means of foreign payment). |
| (5) | Where a 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, together with the documents determined and publicly notified by the Minister of Economy and Finance, such as statement of financial position and an income statement, as prescribed in Article 9 (3) of the Act. <Amended on Jan. 5, 2021> |
| (6) | The Minister of Economy and Finance, where he or 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 declaration 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 on 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 revoked. |
| 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 branch offices and offices; |
| 2. | Participation in the management of a foreign corporation through acquisition of stocks or investment equities of the foreign corporation engaged in the foreign exchange brokerage; |
| 3. | Method by which the relevant foreign exchange broker participates in the management of another foreign corporation by having a foreign corporation over which the broker exercises de facto managerial control acquire stocks or investment equities of the foreign corporation engaged in foreign exchange brokerage. |
| 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, professional 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 on Jun. 27, 2017]
| Article 20-3 (Entrustment of Foreign Exchange Services) |
| (1) | "Business affairs prescribed by Presidential Decree" in the former part of Article 10-2 (1) of the Act means the following business affairs: |
| 1. | Receipt of applications for purchase and sale or payment or receipt of foreign exchange; |
| 2. | Verification of real names of persons who apply for purchase and sale or payment or receipt of foreign exchange or assistance in such verification; |
| 3. | Receipt and delivery of the amount of purchase and sale or payment or receipt of foreign exchange; |
| 4. | Business affairs incidental to those specified in subparagraphs 1 through 3; |
| 5. | Other business affairs determined and publicly notified by the Minister of Economy and Finance for improving convenience in foreign exchange transactions. |
| (2) | "Person prescribed by Presidential Decree" in the former part of Article 10-2 (1) of the Act means each of the following persons: |
| (a) | Its equity capital for the immediately preceding business year (referring to the capital, if there is no immediately preceding business year) or its operating funds for that year shall be at least 300 million won; |
| (b) | It shall have human resources and an electronic computer system necessary for handling entrusted business affairs; |
| (c) | A company, a business office, or any of its executive officers (in cases of a business office, referring to the representative; hereafter in item (d), the same shall apply) shall not fall under the category of persons ineligible for registration or authorization under Article 12 (4) of the Act; |
| (3) | A foreign exchange agency, etc. that intend to entrust business affairs pursuant to the former part of Article 10-2 (1) of the Act shall file a report with the Minister of Economy and Finance, along with the documents determined and publicly notified by the Minister at least 15 business days prior to the scheduled date of concluding an entrustment contract: Provided, That if a contract to be concluded is to renew the entrustment contract on the same terms and conditions as the previous one, a report may be filed within one month from the renewal of the contract. |
| (4) | A foreign exchange agency, etc. that intend to amend the terms and conditions of an entrustment contract or to terminate such contract shall file a report with the Minister of Economy and Finance, along with the documents determined and publicly notified by the Minister at least seven business days prior to the scheduled date of concluding the relevant amended contract or the expiration date of the contract. |
| (5) | The scope of entrusted agencies by the type of entrusted business affairs specified in the subparagraphs of paragraph (1) and the details of such affairs shall be determined and publicly notified by the Minister of Economy and Finance. |
[This Article Newly Inserted on Sep. 14, 2021]
[Previous Article 20-3 moved to Article 20-4 <Sep. 14, 2021>]
| Article 20-4 (Foreign Currency Soundness Council) |
| (1) | A Foreign Currency Soundness Council shall be established in the Ministry of Economy and Finance (hereinafter referred to as the "Council") in order to efficiently consult and coordinate matters requiring consultation among relevant agencies relating to the formulation and implementation of policies for stable foreign exchange supply and demand and the maintenance of foreign exchange soundness. |
| (2) | The Council shall consult and coordinate the following matters: |
| 1. | Matters relating to the analysis of the inflow and outflow of foreign currency and the status of foreign exchange supply and demand; |
| 2. | Matters relating to the supervision and regulation of foreign currency soundness of foreign exchange agencies, etc. and operation of levies; |
| 3. | Matters relating to the monitoring and post-management of foreign exchange agencies, etc.'s payment and transactions; |
| 4. | Other matters on which the Minister of Economy and Finance deems it necessary to consult with other relevant agencies to formulate and implement policies on foreign exchange soundness, such as the management of changes in capital inflow and outflow. |
| (3) | The First Vice Minister of Economy and Finance shall be the chairperson of the Council and the following persons shall serve as members of the Council: |
| 1. | The Vice Chairperson of the Financial Services Commission; |
| 2. | The Senior Deputy Governor of the Bank of Korea; |
| 3. | A person nominated by the Governor of the Financial Supervisory Service, from among Senior Deputy Governors thereof. |
| (4) | Other matters necessary for the operation, etc. of the Council shall be determined by the Minister of Economy and Finance. |
[This Article Newly Inserted on Jun. 8, 2021]
[Moved from Article 20-3 <Sep. 14, 2021>]
| Article 21 (Regulation of Soundness) |
Where the Minister of Economy and Finance intends to impose necessary restrictions on the services of foreign exchange agencies, etc. pursuant to Article 11 (2) of the Act, he or she shall comply with the following standards: <Amended on Dec. 9, 2014; 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 of a foreign exchange agency are set, the title of accounts and the accounting methods shall be determined; |
| 7. | Where risk management standards incidental to foreign exchange services 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 currency exchange services of currency exchange operators are set, objects subject to restrictions and standards for selling foreign currency shall be determined; |
| 10. | In establishing the standards for small-sum 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 on Dec. 30, 2014; Jun. 30, 2015; Oct. 25, 2016> | 1. | A bank established upon authorization under the Banking Act; |
| 7. | Any of the following institutions, the net 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 on 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 in this paragraph referred to as "weighted average") 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 net 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): | 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 on Jun. 30, 2015]
| Article 21-4 (Methods of Calculating Net Balance of Non-Deposit Liabilities in Foreign Currency) |
| (1) | The net 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 on Jun. 30, 2015> |
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| 1. | An amount calculated by multiplying foreign currency deposits received by weight value for each remaining maturity pursuant to attached Table 1; in such cases, if the calculated amount is smaller than zero, it shall be deemed zero; |
| 1. | An amount calculated by multiplying foreign currency deposits received by weight value for each remaining maturity pursuant to attached Table 1; in such cases, if the calculated amount is smaller than zero, it shall be deemed zero; |
| 2. | Amount calculated as prescribed and publicly notified by the Minister of Economy and Finance, which is the amount related to the roles performed to promote foreign exchange transactions as prescribed and publicly notified by the Minister of Economy and Finance, such as promotion of foreign exchange transactions. |
| (3) | The upper limit of the total amount deducted under paragraph (2) shall be 60/100 of the net balance before deduction and the upper limit of the deducted amount specified in the subparagraphs of that paragraph shall be prescribed and publicly notified by the Minister of Economy and Finance.<Amended on Sep. 14, 2021> |
[This Article Newly Inserted on Jul. 25, 2011]
| Article 21-5 (Application of Period of Reducing or Exempting Levies) |
| (1) | The net 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 sum of the daily net 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 on Jun. 27, 2017> |
| (2) | An increase in the net 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 net 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 net average balance for a period during which the additional imposition rate is applied. <Amended on 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 net 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 on Jun. 27, 2017> |
[This Article Newly Inserted on Jul. 25, 2011]
[Title Amended on Jun. 27, 2017]
| 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 on 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 lump sum due to his or her managerial difficulty, etc., the Minister may permit him or her to make a payment in up to four installments within one year from the payment deadline under Article 21-6 (2). <Amended on Jun. 8, 2021> |
| (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 or 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 or 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 on Jul. 25, 2011]
| Article 21-8 (Surcharges) |
"Surcharge prescribed by Presidential Decree" in Article 11-3 (3) of the Act means the following amounts: | 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 in this Article the same shall apply) 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 on 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 net 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 on Jul. 25, 2011]
| Article 21-10 (Lodging Objections and Adjustment of Levies) |
| (1) | A 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 or 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 or 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 or 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 has 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 20 (3) of the Act, he or she may re-impose and collect or refund the difference between the amount already notified or paid and the adjusted amount. <Amended on Sep. 14, 2021> |
| (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 on 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 on Jul. 25, 2011]
| Article 22 (Revocation of Authorization) |
The standards for dispositions under Article 12 (1) of the Act shall be as listed in attached Table 2. [This Article Wholly Amended on Dec. 9, 2014]
| Article 23 (Criteria for Imposition of Penalty Surcharge) |
The criteria for imposition of penalty surcharges under Article 12-2 (1) of the Act shall be as listed in attached Table 3. [This Article Wholly Amended on Dec. 9, 2014]
| Article 24 Deleted. <Dec. 12, 2023> |
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 on Jul. 25, 2011> |
| (2) | "Methods prescribed by Presidential Decree" in Article 13 (3) 4 of the Act means any of the following methods: Provided, That in cases of the foreign exchange equalization fund raised with levies and surcharges referred to in Article 13 (2) 5 of the Act, pursuant to the proviso, with the exception of the subparagraphs, of paragraph (3) of that Article, the methods shall be limited to a transaction of derivatives referred to in Article 5 (1) 3 of the Financial Investment Services and Capital Markets Act with a financial company, etc. from among the methods referred to in subparagraph 2: <Amended on Jul. 25, 2011; Sep. 14, 2021> |
| 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 or her behalf for the efficient issuance of fund bonds according to the following classification: <Newly Inserted on 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 documents for declaration 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 on 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 on Dec. 12, 2012> |
| Article 27 (Operation and 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 Korean won funds and foreign currency funds. <Amended on Jul. 25, 2011> |
| (3) | When the Minister of Economy and Finance operates and manages the accounts of the foreign exchange equalization fund referred to in paragraph (1) pursuant to Article 13 (12) of the Act, he or she shall keep the accounting of the financial resources under Article 13 (2) 1 through 4 and 6 of the Act separately from those under Article 13 (2) 5 of the Act. <Newly Inserted on 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 on 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 on 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 or 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 or 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 without delay lift such measures. |
| Article 30 (Declaration on Methods of Payment or Receipt) |
| (1) | A person who intends to make a declaration of the methods of payment or receipt pursuant to Article 16 of the Act shall submit documents for declaration to the Minister of Economy and Finance, as determined and publicly notified by the Minister of Economy and Finance. |
| (2) | "Cases of transactions prescribed by Presidential Decree" in the proviso, with the exception of the subparagraphs, of Article 16 of the Act means the following cases: <Amended on Jun. 27, 2017> |
| 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 declared to the Minister of Economy and Finance as prescribed in Article 18 of the Act; |
| 3. | Where any export proceeds 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 (Declaration on Export and Import of Means of Payment) |
| (1) | The cases where a declaration 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 declaration pursuant to Articles 16 and 18 (1) of the Act exports or imports means of payment, etc. according to details of such declaration, 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 make a declaration of 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 declared or other necessary matters. |
| (3) | Any person who intends to make a declaration of the export or import of means of payment, etc. pursuant to paragraph (1) shall submit to the Minister of Economy and Finance documents for declaration determined and publicly notified by the Minister of Economy and Finance. |
| Article 32 (Declaration 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 declaration determined and publicly notified by the Minister of Economy and Finance. In such cases, detailed matters concerning procedures, methods, etc. of declaration shall be determined and publicly notified by the Minister of Economy and Finance. |
| (2) | "Capital transactions prescribed by Presidential Decree" in the proviso of Article 18 (1) of the Act means the transactions in the following subparagraphs: |
| 1. | Transactions performed by a foreign exchange agency as foreign exchange services: 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 declared; |
| 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 declaration pursuant to Article 18 (3) of the Act, the Minister of Economy and Finance shall determine whether to accept or reject the declaration, 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 foreign 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 declaration because they are unclear, the Minister of Economy and Finance may request the applicant to supplement them, without delay, within a considerable period specified, and return documents for declaration 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 or 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 or 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 or 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 person who makes a declaration receives recommendations for modification in the absence of such notice), and notify the person who makes a declaration thereof. |
| (7) | "Processing period prescribed by Presidential Decree" in Article 18 (4), with the exception of the subparagraphs, of the Act means 30 days. In such cases, the period required for supplementation referred to in paragraph (4) shall not be counted in the processing period. |
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 on Dec. 9, 2014; Jul. 4, 2023> |
| 1. | Violation of Article 15 of the Act: 10 thousand U.S. dollars; |
| 2. | Violation of Article 16 of the Act: 10 thousand U.S. dollars; |
| 3. | Violation of Article 17 of the Act: 10 thousand U.S. dollars; |
| 4. | Violation of Article 18 of the Act: 50 thousand U.S. dollars. |
| (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 on May 28, 2019> |
| Article 34 (Reporting on Current Status of Bonds Held) |
| (1) | Bonds subject to filing a report on the current status of bonds held by non-residents under Article 20 (1) of the Act shall be those bonds exceeding 10 thousand U.S. dollars. In such cases, the scope of bonds 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 of Article 3 (1) 15 of the Act, as limited to the bonds acquired through transactions to which the Act or this Decree applies. |
| (1) | Inspections under Article 20 (3) of the Act may be conducted as written or on-the-spot inspections. |
| (2) | "Necessary measures prescribed by Presidential Decree" in Article 20 (5) of the Act means the following measures: <Newly Inserted on Sep. 14, 2021> |
| 1. | Request for and recommendation of improvement of business operation methods; |
| 2. | Notification to the relevant institution or investigative agency, in cases of violation of any statute or regulation; |
| 3. | Other measures that the Minister of Economy and Finance can take under the Act, this Decree, and other related statutes or regulations. |
| (3) | "Person prescribed by Presidential Decree" in Article 20 (6) of the Act means the Commissioner of the Korea Customs Service. <Amended on Sep. 14, 2021> |
| (4) | 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 business affairs such as inspections prescribed in Article 20 (3) through (5) of the Act according to the following classifications, pursuant to paragraph (6) of that Article and have their employees perform such duties: <Amended on Jul. 25, 2011; Sep. 17, 2013; Mar. 22, 2016; Jun. 27, 2017; Sep. 14, 2021; Oct. 4, 2023> |
| 1. | The Governor of Bank of Korea: Business affairs such as inspections of the following persons: Provided, That, for a person specified in item (c), the methods of requesting an inspection, etc. to the Governor of the Financial Supervisory Service or jointly participating in an inspection, etc. conducted by such Governor shall be employed, while, for a person specified in item (a) (limited to interested parties) and a person specified in item (e), the methods of requesting an inspection, etc. to the Governor of the Financial Supervisory Service or jointly participating in an inspection conducted by such Governor may also be employed: |
| (a) | Foreign financial institutions that are foreign exchange agencies and their interested parties; |
| (b) | Persons engaging in foreign exchange brokerage and their parties to transactions and interested parties; |
| (c) | 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; |
| (d) | 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; |
| (e) | 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 such as inspections of the following persons: Provided, That business affairs such as inspections of a person specified in the items of subparagraph 1 (excluding business affairs such as inspections conducted pursuant to the proviso of subparagraph 1) and business affairs such as inspections of a person specified in the items of subparagraph 3 shall be excluded herefrom: |
| (a) | Persons operating foreign exchange services and their parties to transactions and interest parties; |
| (b) | Persons engaging in small-sum overseas remittance business and their parties to transactions and interest parties; |
| (c) | Persons engaging in other professional foreign exchange services 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 services transaction or capital transaction unrelated to export and import trade. |
| 3. | The Commissioner of the Korea Customs Service: Business affairs such as inspections of the following persons: |
| (a) | A person who engages in currency exchange services and their parties to transactions and interested parties; |
| (b) | Parties to and interested parties to export and import transactions or to services transactions and capital transactions (for services 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 alternative remittance). |
| (5) | Where the Minister of Economy and Finance intends to conduct business affairs such as inspections pursuant to paragraph (4), he or she shall clearly specify business affairs to be inspected. <Amended on Sep. 14, 2021; Oct. 4, 2023> |
| (6) | A person entrusted with business affairs such as inspections pursuant to paragraph (4) may determine the standards, methods, and procedures for the inspections or other matters pertaining thereto. <Amended on Sep. 14, 2021; Oct. 4, 2023> |
| (7) | Where the Governor of the Bank of Korea deems that an act done by any person specified in the items of paragraph (4) 2 undermines or is likely to undermine 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), he or she may request that the Governor of the Financial Supervisory Service conduct an inspection of a person specified in paragraph (4) 2, within a specific scope, and may request that employees of the Bank of Korea may jointly participate in an inspection conducted by the Governor of the Financial Supervisory Service, with respect to financial institutions under Article 11 of the Bank of Korea Act, parties to transactions, and interested parties. <Amended on Jun. 27, 2017; Sep. 14, 2021> |
| (8) | Where the Governor of the Bank of Korea requests an inspection or joint inspection in which his or her employees participate pursuant to paragraph (7) (hereinafter referred to as "joint inspection"), he or she shall report such fact to the Minister of Economy and Finance in advance. <Amended on Sep. 14, 2021> |
| (9) | The Governor of the Bank of Korea may request the Governor of the Financial Supervisory Service to forward the results of an inspection under paragraph (7) or may request corrective measures based on the results of such inspection. <Amended on Sep. 14, 2021> |
| (10) | 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. <Amended on Sep. 14, 2021> |
| (11) | When the Governor of the Financial Supervisory Service has conducted a joint inspection pursuant to paragraph (10), he or 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. <Amended on Sep. 14, 2021> |
| (12) | Where any act of a person who engages in currency exchange services, small-sum overseas remittance business, or other professional foreign exchange services causes or is likely to cause harm to business practice of currency exchange services, small-sum overseas remittance business or other professional foreign exchange services, 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 on Jun. 27, 2017; Sep. 14, 2021> |
| (13) | Notwithstanding paragraph (12), 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 independently conducting an inspection and taking subsequent necessary measures. <Newly Inserted on Jun. 27, 2017; Sep. 14, 2021> |
| (14) | When the Commissioner of the Korea Customs Service or the Governor of the Financial Supervisory Service has conducted a joint inspection pursuant to paragraph (12), he or she shall forward a written inspection report to the head of the other institution and may request corrective measures based on the results of such inspection. <Newly Inserted on Jun. 27, 2017; Sep. 14, 2021> |
| (15) | 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 on Jun. 27, 2017; Sep. 14, 2021> |
| (16) | When the Commissioner of the Korea Customs Service has conducted a joint inspection pursuant to paragraph (15), he or she shall forward a written inspection report to the Governor of the Financial Supervisory Service and may request corrective measures based on the results of such inspection. <Amended on Jun. 27, 2017; Sep. 14, 2021> |
| (17) | 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 or she shall inform the relevant institution of such fact without delay. <Newly Inserted on Jun. 27, 2017; Sep. 14, 2021> |
[This Article Wholly Amended on Sep. 17, 2013]
[Title Amended on Oct. 4, 2023]
| Article 35-2 (Sharing of Administrative Information) |
If necessary for conducting business affairs such as inspections pursuant to Article 20 of the Act, the Minister of Economy and Finance (including agencies entrusted with business affairs such as inspections pursuant to paragraph (6) of that Article) may share the following administrative information under Article 36 (1) of the Electronic Government Act: <Amended on Oct. 4, 2023> | 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 declaration of the place of residence in the Republic of Korea; |
| 4. | A card of foreigner's real estates registration ; |
| 5. | A certificate of declaration 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 registration; |
| 11. | A card of business registration; |
| 12. | A certificate of business closure. |
[This Article Newly Inserted on 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 aggregation agency and the head of a specialized credit financial business association referred to in the Specialized Credit Finance Business Act. <Amended on 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 aggregation 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 or she shall determine and publicly notify necessary matters, such as transactions subject to notification, the time of such notification, etc. <Amended on Dec. 9, 2014> |
| (3) | "Person prescribed by Presidential Decree" in Article 21 (2) of the Act means the foreign exchange information aggregation 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 delegated authority to the heads of customs houses after obtaining approval from the Minister of Economy and Finance: <Amended on Mar. 22, 2016; May 31, 2016; Jun. 27, 2017; Sep. 14, 2021> |
| 1. | Registration of currency exchange services and declaration on modification of any registered matters and discontinuance of currency exchange services under Article 8 (3) 1 and (4) of the Act; |
| 1-2. | Supervision over, and orders necessary for the supervision over, currency exchange operators, under Article 11 (1) of the Act; |
| 1-3. | Restrictions on matters referred to in subparagraph 9 of Article 21 concerning currency exchange operators, under Article 11 (2) of the Act; |
| 2. | Revocation of registration, restriction on business, or suspension of business of currency exchange operators under Article 12 (1) of the Act, or holding hearings under paragraph (3) of that Article; |
| 3. | Imposition of penalty surcharges on currency exchange operators under Article 12-2 of the Act; |
| 4. | Declaration of export or import of any means, etc. of payment under Article 17 of the Act; |
| 5. | Administrative dispositions, such as warning and suspension of transaction, etc. (limited to dispositions taken against persons specified in the items of Article 35 (4) 3) under Article 19 of the Act and holding hearings under paragraph (3) of that Article; |
| 6. | Request for reports (only applicable to cases where such reports are necessary to handle any business affairs entrusted under this paragraph) under Article 20 (1) of the Act and for submitting data or information under paragraph (2) of that Article; |
| 7. | Imposition and collection of administrative fines under Article 32 (1) through (4) (excluding cases falling under paragraph (2) 3 of that Article) (only applicable to persons specified in the items of Article 35 (4) 3); |
| 8. | Imposition and collection of administrative fines under Article 32 (2) 3 of the Act. |
| (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 entrusted authority to the Governor of the Financial Supervisory Service after obtaining approval from the Minister of Economy and Finance: <Amended on Sep. 17, 2013; May 31, 2016; Jun. 27, 2017; Sep. 14, 2021; Oct. 4, 2023> |
| 1. | Supervision of, and orders necessary for the supervision of, foreign exchange agencies under Article 11 (1) of the Act (excluding foreign financial institutions; hereafter in this paragraph, the same shall apply) and persons who have other professional foreign exchange services registered; |
| 2. | Restrictions on the following matters under Article 11 (2) 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 professional foreign exchange services under Article 12 (1) of the Act; |
| 4. | Imposition of penalty surcharges on foreign exchange agencies and persons registered for other professional foreign exchange services under Article 12-2 of the Act; |
| 5. | Declaration of 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 and suspension of transactions under Article 19 of the Act (limited to dispositions against persons specified in the items of Article 35 (4) 2; but excluding dispositions against small-sum 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 that Article; |
| 7. | Request for reports under Article 20 (1) of the Act and for submitting data or information under paragraph (2) of that Article (limited to cases where it is necessary to handle any business affairs entrusted under this paragraph); |
| 8. | Imposition and collection of administrative fines under Article 32 (1) through (4) of the Act (excluding cases falling under paragraph (2) 3 of that Article) (only applicable to persons specified in the items of Article 35 (4) 2, but excluding dispositions against small-sum 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 on Jul. 25, 2011; Sep. 17, 2013; Mar. 22, 2016; Jun. 27, 2017; Sep. 14, 2021; Oct. 4, 2023> |
| 1. | Supervision of, and orders necessary for the supervision of, foreign exchange agencies under Article 11 (1) of the Act (limited to foreign financial institutions); |
| 2. | Supervision of, and orders necessary for the supervision of, foreign exchange brokerage companies under Article 11 (1) of the Act; |
| 3. | Restrictions on the following matters under Article 11 (2) 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; <Mar. 22, 2016> |
| 5. | Restrictions on, or suspension of the business of, foreign exchange brokerage companies under Article 12 (1) of the Act; |
| 6. | Affairs related to operation and management of the foreign exchange equalization fund under Articles 13 and 14 of the Act; |
| 7. | Permission for payment or receipt under Article 15 of the Act; |
| 8. | Declaration of the method of payment or receipt under Article 16 of the Act (excluding cases falling under paragraph (5) 1); |
| 9. | Declaration of capital transactions under Article 18 of the Act (limited to matters publicly notified by the Minister of Economy and Finance); |
| 10. | Administrative dispositions, such as warnings and suspension of transactions under Article 19 of the Act (only applicable to persons specified in the items of Article 35 (4) 1); |
| 11. | Request for reports under Article 20 (1) of the Act (only applicable 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 that Article; |
| 12. | Deleted; <Jun. 27, 2017> |
| 13. | The following matters related to the imposition and collection of levies and surcharges under Articles 11-2 and 11-3 of the Act: |
| (a) | Giving a payment notice of and receipt of levies under Article 11-2 (1) of the Act and Article 21-6 (1) of this Decree; |
| (b) | Receipt of an application for payment in installments and notification as to whether payment in installments is approved under Article 11-3 (1) of the Act and Article 21-7 of this Decree; |
| (c) | Issuing a reminder letter under Article 11-3 (2) of the Act; |
| (d) | Collection of surcharges under Article 11-3 (3) of the Act; |
| (e) | Compulsory collection of levies and surcharges under Article 11-3 (4) of the Act; |
| (f) | Requests for presentation of data under Article 11-3 (5) of the Act; |
| (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 net 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 on Jun. 27, 2017; May 28, 2019> |
| 1. | Supervision of, and issuance of orders necessary to supervise small-sum 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-sum 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 that 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 declaration of the modification or closure of business under Article 16 (2) and the verification thereof; |
| 5. | Matters concerning the requirements for the registration of small-sum 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 of Article 15-3 (2); |
| 7. | Establishment or modification of contractual terms, and declaration of the modification of terms and conditions, and recommendation for the modification thereof to small-sum overseas remittance business entities pursuant to Article 15-4 (3) and (4); |
| 8. | Deleted; <Oct. 8, 2019> |
| 9. | Receipt of reports on calculation, etc. of the amounts of performance bonds of small-sum 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 on Sep. 17, 2013; Dec. 9, 2014; Jun. 27, 2017> |
| 1. | Declaration of 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. | Declaration of 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 that 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 on 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 or she shall have a prior consultation with the Minister of Economy and Finance. |
| 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 aggregation agency or other computer networks designated by the Minister of Economy and Finance, and may order to make a declaration of, file an application for or report on or 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. |
| Article 39 (Relay, Aggregation, Exchange, and Analysis of Data on Foreign Exchange Transactions) |
| (1) | The Minister of Economy and Finance may designate a foreign exchange information aggregation 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 aggregation agency of its details, and a foreign exchange information aggregation agency may furnish a foreign exchange information analysis agency with data on foreign exchange transactions stipulated by the standard for carrying on business affairs under paragraph (4). |
| (3) | The head of a foreign exchange information aggregation 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 aggregation agency and a foreign exchange information analysis agency and may have a foreign exchange information aggregation agency and a foreign exchange information analysis agency establish detailed operating standards. |
| (5) | Where the head of a foreign exchange information aggregation agency and the head of a foreign exchange information analysis agency have formulated detailed operating standards for management pursuant to paragraph (4), they shall notify the Minister of Economy and Finance of such details without delay. |
| (6) | The Minister of Economy and Finance may request foreign exchange agencies, etc. to submit data necessary for the swift aggregation of information on foreign exchange transactions and for confirmation as to whether the aggregated data is true and correct, etc. to the head of a foreign exchange information aggregation 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 aggregated agency to supply data necessary for analyzing foreign exchange information. |
| (8) | The Minister of Economy and Finance and the Governor of the Bank of Korea may subsidize necessary expenses within the budget in relation to the performance of business affairs of an agency analyzing foreign exchange information. <Amended on Jun. 8, 2021> |
| Article 39-2 (Processing of Personally Identifiable 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 alien registration number (hereinafter in this Article referred to as "resident registration number, etc.") under subparagraph 1, 2 or 4 of Article 19 of the Enforcement Decree of the Personal Information Protection Act: <Amended on Dec. 12, 2012; Jun. 27, 2017> |
| 1. | Business affairs concerning orders to recover debts referred to in Article 6 (1) 3 of the Act; |
| 1-2. | Business affairs concerning the registration of foreign exchange services, declaration of 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; |
| 2. | Business affairs concerning approval for foreign exchange brokerage referred to in Article 9 of the Act; |
| 3. | Business affairs concerning the supervision of business and regulation of soundness, etc. referred to in Article 11 of the Act; |
| 4. | Business affairs concerning procedures for payment, etc. referred to in Article 15 of the Act; |
| 5. | Business affairs concerning declaration of methods of payment or receipt referred to in Article 16 of the Act; |
| 6. | Business affairs concerning declaration of export and import of means of payment, etc. referred to in Article 17 of the Act; |
| 7. | Business affairs concerning declaration of capital transactions referred to in Article 18 of the Act; |
| 8. | Business affairs concerning warnings and the suspension of transactions, etc. referred to in Article 19 of the Act; |
| 9. | Business affairs concerning report and inspections referred to in Article 20 of the Act; |
| 10. | Business affairs concerning the notification of data, etc. referred to in Article 21 of the Act; |
| 11. | Business 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 clause of Article 10 (1) of the Act, a foreign exchange agency, etc. may process data including the resident registration number, etc. <Amended on Jun. 27, 2017> |
[This Article Newly Inserted on Jan. 6, 2012]
| Article 39-3 (Re-Examination of Regulation) |
The Minister of Economy and Finance shall examine the appropriateness of authorization, etc. for foreign exchange brokerage under Article 18 every three years, counting from January 1, 2014 (referring to the period that ends on the day before January 1 of every third year) and shall take measures, such as making improvements. [This Article Wholly Amended on Mar. 3, 2020]
| Article 40 (Penalty Provisions) |
| (1) | "Amount prescribed by Presidential Decree" in Article 29 (1) 3 of the Act means the following amounts: <Amended on Jul. 25, 2011; Mar. 22, 2016; Jun. 27, 2017; Jul. 4, 2023> |
| 1. | Where Article 16 of the Act is violated: Five billion won; |
| 2. | Where Article 18 of the Act is violated: Two billion won. |
| (2) | "Amount prescribed by Presidential Decree" in Article 29 (1) 4 of the Act means 30 thousand U.S. dollars. <Newly Inserted on May 31, 2016; 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 on Dec. 9, 2014]
ADDENDUM <Presidential Decree No. 21287, Feb. 3, 2009>
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.
Article 2 Omitted.
Article 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:
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.
ADDENDUM <Presidential Decree No. 30496, Mar. 3, 2020>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 30509, Mar. 3, 2020>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 31134, Nov. 3, 2020>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 31380, Jan. 5, 2021>
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
ADDENDA <Presidential Decree No. 31723, Jun. 8, 2021>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Payment of Macro-Prudential Stability Levies in Installments)
The amended provisions of Article 21-7 (1) shall begin to apply to applications for payment in installments made under paragraph (2) of that Article after this Decree enters into force.
ADDENDA <Presidential Decree No. 31976, Sep. 14, 2021>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 16, 2021.
Article 2 (Applicability to Methods of Calculating Remaining Balance of Non-Deposit Liabilities in Foreign Currency, etc.)
The amended provisions of Article 21-4 (2) and (3) shall begin to apply to calculation of levies for the business year in which the enforcement date of this Decree falls.
ADDENDA <Presidential Decree No. 33616, Jul. 4, 2023>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Administrative Dispositions)
Notwithstanding the amended provisions of Article 33 (1) 4, the previous provisions shall apply to the administrative dispositions against the violations committed before this Decree enters into force. Article 3 (Transitional Measures concerning Penalty Provisions and Administrative Fines)
Notwithstanding the amended provisions of subparagraphs 1 and 2 of Article 40 (1) and subparagraph 2 (p) of attached Table 4, the previous provisions shall apply to the application of penalty provisions and administrative fines to violations committed before this Decree enters into force.
ADDENDA <Presidential Decree No. 33777, Oct. 4, 2023>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 Omitted.
ADDENDUM <Presidential Decree No. 33913, Dec. 12, 2023>
This Decree shall enter into force on the date of its promulgation.