Rules on currency exchange, forex to be eased

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Rules on currency exchange, forex to be eased

The government is loosening restrictions on foreign currency transactions.

The Ministry of Strategy and Finance said yesterday that it is raising the annual limit on sending money overseas without having to prepare documentation, from the current $50,000 to between $70,000 and $100,000.

“There have been many requests from banks to increase the limit as the number of students studying abroad has increased,” said an official at the Finance Ministry, requesting anonymity. “We are considering raising the limit to a maximum $100,000.”

Current regulations require the sender to submit relevant documents to the government for amounts above $50,000 a year. In excess of $10,000, the National Tax Service must also be notified.

The government also plans to loosen restrictions on foreign exchange trades below $10,000. This will include situations where foreign currency is bought overseas and subsequently reconverted to won back in Korea. Although such trade is against the law, the government is planning to be lenient with small amounts.

The revised bill also allows brokerage firms, futures trading companies and asset management firms to offer derivatives products related to foreign exchange transactions.

The government said that it will simplify the terms used in the regulations on foreign exchange for ease of understanding.

Under the revised bill, companies that violate the law could receive fines of up to 1 billion won ($886,000), instead of the current trade suspension of six months or less.

The government hopes to implement the revised law in February next year after it passes the National Assembly.



By Lee Ho-jeong Staff Reporter [ojlee82@joongang.co.kr]
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