(1) Reasons for Proposal
This amendment aims to improve the consistency and predictability of the Regulations by enhancing the convenience in foreign exchange transactions, such as the Improvement Plan for Foreign Currency Liquidity Supply Management, announced in January 2021, and the mitigation of the burden of declaring and reporting on foreign exchange transactions to suit the reality of foreign exchange transactions, and by clarifying the phrases of the clauses which have been unclear under the Regulations.
(2) Major Provisions
A. Allow the preliminary reporting of payment and receipt and the ex post facto reporting of real estate acquisition and foreign direct investment through electronic methods (§5-3, §9-9, §9-40).
¡ Allow reporting through electronic methods for preliminary reporting of atypical payments under Article 16 of the Foreign Exchange Transactions Act (§5-3).
¡ Allow the submission of ex post facto reporting data through electronic methods for follow-up management after a real estate acquisition (§9-40).
¡ Allow the submission of ex post facto reporting data through electronic methods for follow-up management after overseas direct investment (§9-9).
B. Expand objects for exceptions to the third-party payment report (§5-10).
¡ Allow third-party payment report exceptions for payment through domestic lawsuits, tax, and real estate transaction agents of non-residents.
C. Expand and clarify objects for exception to securities acquisition §7-31, §7-32).
¡ Allow report exceptions when a resident/non-resident acquires securities by exercising rights granted to transactions recognized through the exercise of conversion rights, etc.
D. Mandate the deposit in securities investment for investor’s deposit of residents (§7-34).
E. Enhance the monitoring of foreign currency securities investment in institutional investments (§7-35).
¡ Strengthen the monitoring, from quarterly reporting to monthly reporting for investment performances such as the acquisition, selling, and retention of foreign currency securities.
F. Delete loans of use from objects to the regulation of “other capital transactions” (§7-44).
H. Mitigate the deadline for reporting changes by assignor when transferring overseas direct investment shares between residents (§9-5).
I. Extend the information to be shared with the Commissioner of the Korea Customs Service on the acquisition of domestic real estate by non-residents (§10-12).
¡ Allow the Commissioner of the Korea Customs Service to access the data related to the acquisition of domestic real estate by non-residents among the data on the foreign exchange computer network of the Bank of Korea.
