Overseas remittances for 'personal' use top 4 trillion won annually as tax evasion concerns mount
Published: 17 Oct. 2025, 11:32
Updated: 17 Oct. 2025, 14:55
![People wait in line for visa interviews outside the U.S. Embassy in Jongno District, central Seoul. [NEWS1]](https://koreajoongangdaily.joins.com/data/photo/2025/10/17/29db26e8-31b9-4043-8cbe-b71e2de5f57b.jpg)
People wait in line for visa interviews outside the U.S. Embassy in Jongno District, central Seoul. [NEWS1]
Overseas remittances from Korea categorized as personal transfers have topped 4 trillion won ($2.82 billion) annually, according to central bank data, raising concerns over potential tax evasion loopholes.
According to data submitted to Rep. Park Sung-hoon of the conservative People Power Party by the Bank of Korea, a total of around $12.2 billion in outward remittances classified as personal transfers was recorded from 2022 through the end of August this year.
These transfers typically consist of funds sent by parents in Korea to children living abroad for tuition and living expenses.
Both the number and volume of transactions have been steadily increasing. In 2022, there were 462,000 cases totaling nearly $3.12 billion. In 2023, the figure rose to 490,000 cases and nearly $3.42 billion.
By country, the United States accounted for the largest portion this year with $1.12 billion, followed by Canada, Australia and Japan.
Under current law, annual overseas remittances of up to $100,000 can be made without submitting documentation. However, any single remittance exceeding $10,000 or cumulative annual remittances exceeding that amount are automatically reported to the National Tax Service.
“More than 4 trillion won is sent abroad each year in what could be considered gift-related remittances,” Park said. “Authorities need to closely examine whether these transactions are being used to circumvent gift tax regulations, which undermines trust among honest taxpayers.”
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM CHUL-WOONG [[email protected]]
with the Korea JoongAng Daily
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