Korea eyes removal of pre-reporting for forex transactions

South Korea as early as the second half of next year could lift regulations on money transfers abroad that exceed $50,000 per year.

Daily foreign currency transactions by individuals for purposes like study abroad, travel and remittances between individuals can be notified to authorities after they are conducted under proposed revisions to legislation.

Government authorities on Monday said the Ministry of Economy and Finance late this month will announce the basic direction of the new foreign exchange law with these details.

Under the Act on Foreign Exchange Transactions, an overseas remittance of over $5,000 requires designation of the foreign currency transaction bank before the transaction is conducted.

If the amount sent exceeds $50,000 in one calendar year, the remittance is possible only through a branch of a foreign exchange transaction bank.

The government's position, however, is to lift this advance reporting rule under the new system of foreign exchange law.

Seoul will finalize the direction of a new law on foreign exchange after receiving ratification from a ministerial-level meeting late this month chaired by the deputy prime minister for economy and finance.

Preparation of amendments to laws and enforcement decrees and regulations is slated this year in line with this plan, and the plan is for the legislative process of the National Assembly to proceed with implementation to come as early as the second half of next year.

Write to Jung-hwan Hwang at jung@hankyung.com