Following are major highlights of the updated regulations:
* Foreign exchange transactions may be reported to commercial banks, rather than the Bank of Korea, when transactions involve only the net amounts.
* Foreign exchange transactions that must be reported include:
* Capital increases.
* Sales of overseas subsidiaries (including their establishments)
* Investments of holding companies in subsidiaries.
* Foreign Exchange transactions exempt from reporting duties include:
* Net settlements of less than USD 1,000.
* Payments to third parties.
* Settlement practices used in the global market.
* Certain small transactions.
In addition, details of foreign exchange transactions will be shared among government agencies to help prevent overseas tax evasion and illegal transactions.
Companies carrying out international transactions may consider updating their internal systems for complying under the new foreign exchange transaction reporting mechanism.
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