Starting in the second half of this year, the limit for overseas remittances without additional evidence will be expanded from $50,000 to $100,000 per year. Large securities firms will also be able to exchange money for the public and companies. South Korea's Ministry of Strategy and Finance announced on the 8th (local time) that it will make an administrative notice on the "Amendment to Foreign Exchange Transaction Regulations" containing these contents.
The revision is a follow-up to the "Foreign Exchange System Reform Plan" announced in February. The government explained that the move is aimed at enhancing the convenience of ordinary foreign exchange transactions by increasing the limit on overseas remittances to match the size of the Korean economy.
The government enacted the Foreign Exchange Transaction Act in 1999 to limit the amount of unproven remittance to $50,000, which doubled for the first time in 23 years. The move is especially good news for parents who have international students in Canada, mothers of wild geese, or expatriates who want to send money for monthly rent deposits. In the meantime, in order to make overseas remittances exceeding $50,000 a year, they had to submit evidence such as reasons and amounts to the bank at the stage of remittance or collection.
In addition, large securities firms will be allowed to exchange foreign currency for ordinary customers, allowing foreign investors to exchange foreign currency funds immediately and invest in Korean securities without having to deposit them in advance. The revision is scheduled to take effect on July 1 after an administrative notice by the 18th.
(Editor Youngmin Ahn)