2026-01-29 | 100446-106820Added
Foreign exchange banks, intermediary companies, and levy payment obligors must manage position limits, prohibit specific foreign currency loans, and submit daily position, quarterly levy, and annual reports to the Bank of Korea. Levies are payable in US dollars within five months of the settlement month, with surcharges for late payments. Market makers and local currency direct transaction banks must provide competitive bids and report materials. Non-compliance may result in sanctions, including registration cancellation.
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Enacted: March 31, 1999. Governor's Approval No. Guksim 6011-217 Amended: December 30, 2000. Governor's Approval No. Guksim 6011-3 Amended: October 4, 2001. Governor's Approval No. Guksae 6011-815 Amended: March 18, 2002. Governor's Approval No. Guksim 6011-113 Amended: August 25, 2004. Governor's Approval No. Gukje 6011-587 Amended: February 16, 2006. Governor's Approval No. Foreign Exchange Investigation Team-37 Amended: August 1, 2007. Governor's Approval No. International Planning Team-1209 Amended: October 16, 2007. Governor's Approval No. Foreign Exchange Review Team-773 Amended: December 28, 2007. Governor's Approval No. International Planning Team-2102 Amended: January 17, 2008. Governor's Approval No. International Planning Team-93 Amended: March 20, 2008. Governor's Approval No. International Planning Team-486 Amended: October 27, 2008. Governor's Approval No. International Planning Team-1948 Amended: December 1, 2008. Governor's Approval No. International Planning Team-2254 Amended: March 2, 2009. Governor's Approval No. International Planning Team-469 Amended: June 22, 2010. Governor's Approval No. International Planning Team-984 Amended: July 9, 2010. Governor's Approval No. International Planning Team-1146 Amended: July 15, 2011. Governor's Approval No. International General Team-864 Amended: July 26, 2011. Governor's Approval No. International General Team-939 Amended: January 18, 2013. Governor's Approval No. International General Team-85 Amended: December 23, 2014. Governor's Approval No. Foreign Exchange Review Team-1564 Amended: January 27, 2015. Governor's Approval No. International General Team-78 Amended: June 24, 2015. Governor's Approval No. International General Team-480 Amended: March 30, 2016. Governor's Approval No. Foreign Exchange Review Team-316 Amended: July 18, 2017. Governor's Approval No. Foreign Exchange Accounting Team-1605 Amended: April 7, 2020. Governor's Approval No. International General Team-476 Amended: April 18, 2022. Acting Governor's Approval No. Foreign Exchange Market Team-136 Amended: January 2, 2024. Governor's Approval No. International General Team-5 Amended: July 12, 2024. Governor's Approval No. International General Team-953 Amended: January 24, 2025. Governor's Approval No. International General Team-108 Amended: June 20, 2025. Governor's Approval No. International General Team-786 Amended: January 29, 2026. Governor's Approval No. International General Team-148
These Detailed Rules aim to stipulate matters concerning foreign exchange transactions entrusted to the Governor of the Bank of Korea, in accordance with the Foreign Exchange Transaction Act, the Enforcement Decree of the Foreign Exchange Transaction Act, the Foreign Exchange Transaction Regulations, and the Guidelines on Foreign Exchange Transactions of Foreign Financial Institutions.
① The foreign exchange position of a foreign exchange bank (referring to the comprehensive position and forward foreign exchange position under Article 2-9 of the "Foreign Exchange Transaction Regulations" (hereinafter referred to as the "Regulations")) shall be classified as follows:
② The comprehensive position of a foreign exchange bank shall be calculated as the larger of the sum of comprehensive net purchase positions for each foreign currency and the sum of comprehensive net sale positions for each foreign currency. The forward foreign exchange position shall be calculated by subtracting the sum of forward foreign exchange net sale positions for each foreign currency from the sum of forward foreign exchange net purchase positions for each foreign currency.
The specific scope of foreign currency assets and liabilities under Article 21, Item 2 of the Enforcement Decree of the Foreign Exchange Transaction Act (hereinafter referred to as the "Decree") shall be determined by the Director of the International Department of the Bank of Korea (hereinafter referred to as the "Director") in accordance with the "Guidelines for Preparing Foreign Currency Balance Sheets for Financial Institutions" separately determined by the Director.
① Foreign exchange banks shall report the daily foreign exchange position status to the Governor of the Bank of Korea monthly, in accordance with the manner determined by the Director.
② The comprehensive position limit shall be managed based on the balance on each business day. However, if the foreign exchange position on Saturdays and days when the New York foreign exchange market is closed exceeds the limit, it shall be managed based on the average balance calculated by combining the foreign exchange position on the next business day.
③ The forward foreign exchange position limit shall be managed on each business day based on the arithmetic average of the daily forward foreign exchange position balances over the past one month from the previous business day.
④ The foreign exchange position limits under Articles 2-9-2, Paragraph 1 and 2 of the Regulations shall be based on the amount of own capital converted into US dollars. In this case, the exchange rate applied shall be determined by the Director.
⑤ The Director may request foreign exchange banks to submit supporting materials necessary for the management of foreign exchange position limits or inspect related books and documents.
① The period for recognizing separate limits for foreign exchange purchases for hedging exchange rate risks of retained earnings carried forward, as per Article 2-9-2, Paragraph 3 of the Regulations, shall be within one year. For foreign exchange banks where exceeding the foreign exchange position limit is deemed necessary, the period for recognizing separate limits shall be within two years, but may be extended if necessary.
② Specific matters regarding the recognition of separate limits under Paragraph 1 shall be determined by the Director.
① Comprehensive positions arising from structural factors of foreign exchange banks, specifically foreign exchange purchases and sales falling under any of the following items, are excluded from comprehensive position limit management:
② Forward foreign exchange positions arising from structural factors of foreign exchange banks, specifically forward foreign exchange purchases and sales falling under any of the following items, are excluded from forward foreign exchange position limit management:
① The types of deposits by account under Article 2-6-2, Paragraph 2 of the Regulations are classified as follows:
② Notwithstanding Item 4 of Paragraph 1, the types of deposits that non-resident nationals falling under Article 10, Paragraph 2, Items 1, 2, and 6 of the Decree (limited to cases for use within Korea) may open are the same as other Korean Won deposit types of the opening bank. However, negotiable certificates of deposit are excluded.
In this Section, "foreign currency loan" refers to foreign currency loans provided by foreign exchange banks to residents. It includes "foreign currency loans" under the "Foreign Exchange Account Accounting Standards" (Appendix Table 4-1) of the "Guidelines for Implementing Banking Supervision Business" and domestic and foreign currency private placement bonds determined by the Director.
Articles 2-9 and 2-11 do not apply to the following businesses:
① Foreign exchange banks shall not provide foreign currency loans to support funds falling under any of the following items:
② Notwithstanding Paragraph 1, foreign exchange banks may provide foreign currency loans for domestic facility fund purposes to small and medium-sized manufacturing enterprises, up to the limit of the outstanding domestic facility fund loan balance for such foreign exchange banks to small and medium-sized manufacturing enterprises as of June 30, 2010.
③ Small and medium-sized manufacturing enterprises under Paragraph 2 refer to small and medium-sized enterprises defined in Article 2 of the "Small and Medium Business Act" operating manufacturing industries under the "Korean Standard Industrial Classification."
④ Notwithstanding Paragraph 1, foreign exchange banks may provide foreign currency loans for domestic facility funds or working capital to enterprises engaged in exports falling under Article 2 of the "Enforcement Decree of the Foreign Trade Act" (excluding individual business operators and small business operators defined in Article 2 of the "Small Business Act"), up to the limits of any of the following items:
Foreign exchange banks must confirm in writing that foreign currency loan transactions do not violate the restrictions under Article 2-9. After lending, they must determine whether funds are used for purposes other than approved, in accordance with the manner determined by the Director.
The provisions of this Section apply mutatis mutandis to foreign exchange business handling institutions other than foreign exchange banks, except for Article 2-9, Paragraph 4.
Non-deposit foreign currency liabilities, etc. (hereinafter referred to as "non-deposit foreign currency liabilities, etc.") for calculating foreign exchange stability levies (hereinafter referred to as "levies") under Article 21-4 of the Decree are calculated by subtracting foreign currency deposits and foreign currency liability accounts excluded under Article 2-11-2 and Article 2-23-3 of the Regulations from the following liability accounts (hereinafter referred to as "foreign currency liabilities, etc."):
① The weighted average maturity under Article 21-3 of the Decree is calculated by categorizing non-deposit foreign currency liabilities, etc., by remaining maturity in one-year increments as of the end of the business year, and then applying the following formula. However, when applying remaining maturity, periods exceeding 6 months but not exceeding 1 year are treated as 1 year.
Weighted Average Maturity = Σ (Remaining Maturity × Amount of Non-Deposit Foreign Currency Liabilities, etc. by Remaining Maturity) / Total Amount of Non-Deposit Foreign Currency Liabilities, etc.
② Specific matters regarding the calculation of weighted average maturity shall be determined by the Director.
① The balance of non-deposit foreign currency liabilities, etc. under Article 21-4, Paragraph 1 of the Decree is calculated by dividing the sum of month-end balances of non-deposit foreign currency liabilities, etc. with remaining maturities of 1 year or less during the balance calculation period under Article 2-16 by 12.
② When calculating the balance of non-deposit foreign currency liabilities, etc. as per Paragraph 1, for financial institutions falling under Article 21-2, Paragraph 7, Item of the Decree, it is limited to non-deposit foreign currency liabilities, etc. arising after July 1, 2015. In this case, extensions of matured non-deposit foreign currency liabilities, etc. are also included.
③ When deducting deductions under Article 21-4, Paragraph 2 of the Decree, the balance of non-deposit foreign currency liabilities, etc. (hereinafter referred to as "pre-deduction balance") under Paragraphs 1 and 2 is used, subtracting the deduction amounts under Article 21-4, Paragraph 2, Items 1 and 2 of the Decree (hereinafter referred to as "post-deduction balance"). However, for business years including the levy reduction period under Article 21-5, Paragraph 1 of the Decree, the post-deduction balance for the reduction period is the balance calculated by subtracting the deduction amounts under Article 21-4, Paragraph 2, Items 1 and 2 of the Decree, calculated based on daily balances, from the average daily balance of non-deposit foreign currency liabilities, etc. with remaining maturities of 1 year or less.
④ Article 21-4, Paragraph 3 of the Decree applies to each of Article 21-4, Paragraph 2, Items 1 and 2.
⑤ The increase in the balance of non-deposit foreign currency liabilities, etc. for calculating additional levies under Article 21-5, Paragraph 2 of the Decree is calculated by multiplying the difference between the average daily balance during the additional levy application period and the average daily balance of the 3 months prior to the application date of the additional levy rate by the number of days in the application period, and then dividing by 365 (or 366 for leap years). However, if the calculated value of the balance increase is negative, it is treated as 0.
⑥ Specific matters regarding balance calculation shall be determined by the Director.
① The annual average amount of month-end balances of foreign currency deposits in the calculation formula of Item 2 of Appendix Table 1, Article 21-4, Paragraph 2, Item 1 of the Decree is calculated by categorizing foreign currency deposits by remaining maturity in the same Appendix Table 3, and dividing the sum of month-end balances of foreign currency deposits during the balance calculation period under Article 2-16 (hereinafter referred to as "foreign currency deposit debit") by 12.
② The increase/decrease in the annual average amount of month-end balances of foreign currency deposits compared to the previous business year in the calculation formula of Item 2 of Appendix Table 1, Article 21-4, Paragraph 2, Item 1 of the Decree is calculated by categorizing foreign currency deposits by remaining maturity in the same Appendix Table 3, and applying the following formula. However, if a levy payment obligor (hereinafter referred to as "levy payment obligor") under Article 21-2 of the Decree is newly established in the relevant business year, it is treated as 0.
Increase/Decrease in Annual Average Amount of Month-End Balances of Foreign Currency Deposits Compared to Previous Business Year = (Foreign Currency Deposit Debit of Relevant Business Year - Foreign Currency Deposit Debit of Previous Business Year) / 12
③ The types of time deposits and other deposits in Item 3 of Appendix Table 1, Article 21-4, Paragraph 2, Item 1 of the Decree are as follows:
④ The remaining maturities of Item 3, Sub-item A of Appendix Table 1, Article 21-4, Paragraph 2, Item 1 of the Decree are as follows:
⑤ For foreign exchange business handling institutions selected as Korean Won/Yuan market market makers or Korean Won/US Dollar market leading banks under Article 10-20 of the Regulations, the sum of amounts specified in Article 2-11-2, Paragraph 2, Items is deducted from the balance of non-deposit foreign currency liabilities, etc., limited to calculating levies for the business year specified in Article 2-11-2, Paragraph 5 of the Regulations. In this case, the calculation method targets only the period selected as a Korean Won/Yuan market market maker or Korean Won/US Dollar market leading bank during the relevant business year, and the deduction is applied proportionally to the selected period (calculated in months) divided by 12 months.
⑥ When calculating foreign currency deposit debits, foreign currency deposits applying market value accounting are based on the principal amount.
① The balance calculation period for levies payable by levy payment obligors is from the start date to the end date of the business year of the levy payment obligor.
② If a levy payment obligor is newly established, the balance calculation period for the first levy payable is from the date of registration of foreign exchange business to the end date of the relevant business year.
③ If any of the following events occur to a levy payment obligor, the balance calculation period for levies payable is from the start date of the business year in which the event occurs to the earliest date among the following:
Levies payable by levy payment obligors after the end of the business year are calculated as follows:
① Levy payment obligors must submit the following levy reports to the Director in the manner determined by the Director:
② When submitting annual reports, levy payment obligors must report final data reflecting settlement materials for the business year.
③ If any of the events under Article 2-16, Paragraph 3, Items occur to a levy payment obligor, the month in which the event occurs is treated as the settlement month of the business year, and levy reports must be submitted.
④ The Director may request levy payment obligors to submit detailed materials related to levy reports in writing or other methods if deemed necessary for the assessment and collection of levies.
⑤ Specific matters required when requesting materials from financial institutions falling under Article 21-2, Paragraph 7, Item of the Decree under Article 2-23-3, Paragraph 2 of the Regulations shall be determined by the Director.
⑥ The submission period for quarterly reports of financial institutions falling under Article 21-2, Paragraph 7 of the Decree shall be determined by the Director.
① The Director must notify levy payment obligors of the levies payable within 4 months after the settlement month.
② If a levy payment obligor has not received the levy notification under Paragraph 1, they may request the Director to reissue the levy notification.
③ The levy notification date serving as the standard date for applications for installment payments and adjustments to levies is the earliest date among the notification methods determined by the Director.
④ The Director must notify levies within 4 months after the month in which any of the events under Article 2-16, Paragraph 3, Items occur, within the month in which the installment payment cancellation decision occurs under Article 2-25, and within the month in which the levy adjustment decision occurs under Article 2-28, Paragraph 2. In this case, Paragraphs 2 and 3 apply mutatis mutandis.
⑤ Specific matters regarding levy notifications shall be determined by the Director.
① Levy payment obligors must pay levies notified under Article 2-19 to the Governor of the Bank of Korea within 5 months after the settlement month (hereinafter referred to as the "payment deadline"). However, in the case of Article 2-19, Paragraph 4, payment must be made by the following month of the month in which the Director notified the levy.
② If a levy payment obligor fails to pay levies by the payment deadline under Paragraph 1, they must pay surcharges and additional surcharges calculated under Article 21-8 of the Decree according to the period of delinquency to the Governor of the Bank of Korea. In this case, the period for paying additional surcharges may not exceed 6 months.
③ If the payment deadline falls on a day when the New York foreign exchange market is closed, payment must be made by the previous business day.
① Levies and surcharges (including additional surcharges) under Article 2-20 must be paid in US dollars.
② Notwithstanding Paragraph 1, the Governor of the Bank of Korea may temporarily allow payment in Korean Won, considering domestic foreign currency liquidity conditions, with the consent of the Minister of Economy and Finance. In this case, the exchange rate applied to Korean Won payments is separately determined by the Director.
① Levy payment obligors wishing to pay levies and surcharges (including additional surcharges) must submit payment applications and deposit applications for foreign currency funds corresponding to the payment amount through foreign currency deposit accounts opened at the Bank of Korea.
② Surcharges (including additional surcharges) cannot be paid separately from levies.
③ Payment applications under Paragraph 1 must be made at least 1 business day before the scheduled payment date for levies and surcharges (including additional surcharges), in the manner determined by the Director.
④ Foreign currency fund deposit applications under Paragraph 1 must be made before the input end time for foreign currency fund deposit applications on the scheduled payment date.
⑤ When paying levies and surcharges (including additional surcharges) in Korean Won under Article 2-21, Paragraph 2, payment must be made through checking accounts opened at the Bank of Korea. However, financial institutions without checking accounts may pay through financial institutions with checking accounts.
⑥ Specific matters regarding Korean Won payment methods are separately determined by the Director.
① If a levy payment obligor falls under any of the following items and cannot pay levies by the payment deadline, they may apply for installment payments of levies within 15 days after receiving the levy notification under Article 2-19, in the manner determined by the Director:
② If the Director deems the reasons for installment payments under Paragraph 1 valid, they may require payment of 1/10 of the levies payable (first installment) by the payment deadline, and the remaining 9/10 (second installment) in installments within 7 months after the payment deadline.
③ If an application for installment payments under Paragraph 1 is received, the Director must review the approval status within 10 days from the date of receipt and notify the result in writing. If installment payments are approved, the installment amount, payment period, and other necessary matters must be notified together.
④ The Director may request detailed materials regarding installment payments under Paragraph 1 in writing or other methods.
① If the Director approves installment payments under Article 2-23, they may require the provision of guarantees equivalent to the installment amount.
② The types of guarantees under Paragraph 1 are government bonds, bonds guaranteed by the government for principal and interest repayment, and Bank of Korea Monetary Stabilization Bonds. If these guarantees are insufficient, the Director may recognize repurchase agreements under Article 4 of the "Open Market Operation Regulations" and checking accounts under Article 2 of the "Bank of Korea Financial Institutions Deposit Regulations" as guarantees.
The Director may cancel the approval of installment payments and collect the related levies in full if a levy payment obligor who has received approval for installment payments falls under any of the following items:
① If a levy payment obligor fails to pay levies by the payment deadline under Article 2-20, Paragraph 1, the Director must issue a demand notice specifying a period of 10 days or more within 10 days after the payment deadline, demanding payment of levies.
② When demanding payment of levies under Paragraph 1, they must notify payment of surcharges (including additional surcharges) calculated under Article 21-8 of the Decree.
If a levy payment obligor fails to pay the payable amount by the deadline specified in the demand notice under Article 2-26, levies and surcharges (including additional surcharges) are compulsorily collected in accordance with the procedures for collecting delinquent national taxes.
① Objection applications under Article 21-10, Paragraph 1 of the Decree by levy payment obligors may be made within 15 days from the date of receiving the levy notification, in the manner determined by the Director.
② The Director must notify the processing result in writing within 15 days from the date of receiving the application under Paragraph 1. If adjustment of levies is necessary, levies must be reassessed and collected or refunded.
③ If necessary to decide on the adjustment of levies under Paragraph 2, the Director may inspect the relevant financial institutions to verify the appropriateness of levy calculations.
④ If the Director determines through inspections under Article 21-10, Paragraph 4 of the Decree that there is a need to adjust already paid levies, they may reassess and collect or refund levies and surcharges (including additional surcharges). In this case, matters regarding the assessment and collection of levies and surcharges apply the provisions of this Section mutatis mutandis.
Special cases for deadlines under Article 21-11 of the Decree apply to deadlines for levy notifications, payment deadlines, installment payment applications and result notifications, objection applications and result notifications, and reassessment/collection of levies under Articles 2-19, 2-20, 2-23, and 2-28.
① Market makers for Korean Won/Yuan markets (referring to Korean Won/Yuan spot foreign exchange markets, hereinafter the same) under Article 10-20 of the Regulations must be foreign exchange banks meeting the following criteria determined by the Director:
② The Director selects market makers from foreign exchange banks meeting the criteria under Paragraph 1, evaluating their market making capabilities according to criteria determined by the Director.
③ The Director selects Korean Won/Yuan market market makers on an annual basis. However, if the Director deems it necessary, they may select them earlier.
④ The Director may request necessary materials from foreign exchange banks and foreign exchange intermediary companies for the selection under Paragraphs 1 to 3.
① Leading banks for Korean Won/US Dollar markets (referring to Korean Won/US Dollar spot foreign exchange markets and swap markets, hereinafter the same) under Article 10-20 of the Regulations must be foreign exchange banks meeting the following criteria determined by the Director:
② The Director selects Korean Won/US Dollar market leading banks from foreign exchange banks meeting the criteria under Paragraph 1, evaluating their previous year's Korean Won/US Dollar spot foreign exchange trading and swap trading performance according to criteria determined by the Director. However, if the Director deems it necessary, they may include periods prior to the previous year in the evaluation period.
③ The Director selects Korean Won/US Dollar market leading banks on an annual basis, considering the evaluation period under Paragraph 2. However, if the Director deems it necessary, they may select them earlier.
④ The Director may request necessary materials from foreign exchange banks and foreign exchange intermediary companies for the selection under Paragraphs 1 to 3.
① Market makers must continuously provide competitive bids in the Korean Won/Yuan spot foreign exchange market.
② Foreign exchange banks and foreign exchange intermediary companies must promptly submit materials requested by the Director under Article 2-30, Paragraph 4 and Article 2-31, Paragraph 4 regarding the selection of Korean Won/Yuan market market makers or Korean Won/US Dollar market leading banks.
The Director may cancel the selection of foreign exchange banks selected as Korean Won/Yuan market market makers or Korean Won/US Dollar market leading banks if they fall under any of the following items:
① The Governor of the Bank of Korea designates clearing banks from foreign exchange banks, foreign exchange bank overseas branches, and foreign exchange bank local subsidiaries, evaluating their organizational and personnel systems for clearing business, foreign exchange expertise, payment stability, etc., under Article 10-21 of the Regulations.
② The Director may request necessary materials from foreign exchange banks, foreign exchange bank overseas branches, foreign exchange bank local subsidiaries, and foreign exchange intermediary companies for the designation of clearing banks under Paragraph 1.
The heads of clearing banks must promptly submit materials requested by the Director under Article 10-21, Paragraph 3 of the Regulations.
The Governor of the Bank of Korea may cancel the designation of clearing banks if foreign exchange banks, foreign exchange bank overseas branches, and foreign exchange bank local subsidiaries designated as clearing banks receive sanctions under Article 17, Paragraph 1, Items 1 or 2 of the "Regulations on Inspection and Sanctions of Financial Institutions" or equivalent sanctions.
① Korean local currency direct transaction banks and counterpart country local currency direct transaction banks may operate and manage sub-accounts under foreign currency accounts or non-resident free Korean Won accounts opened with each other, using the local currency direct transaction (LCT) system, for residents or non-residents, as follows:
② If the Director deems it necessary, they may request counterpart country local currency direct transaction banks to submit relevant materials regarding sub-accounts under Item 2 of Paragraph 1 to the counterpart country's central bank, and in this case, the counterpart country local currency direct transaction banks must respond promptly.
① The Governor of the Bank of Korea selects Korean local currency direct transaction banks from foreign exchange banks, evaluating their organizational and personnel systems for local currency direct transaction business, foreign exchange expertise, payment stability, financial soundness, etc., under Article 10-21-2, Paragraph 1 of the Regulations. However, the Governor of the Bank of Korea may skip the evaluation and select foreign exchange banks recommended by the counterpart country's central bank.
② The Director may request necessary materials from foreign exchange banks and foreign exchange intermediary companies for the selection of Korean local currency direct transaction banks under Paragraph 1.
① Korean local currency direct transaction banks must provide competitive bids for Korean Won/counterpart country currency direct transaction exchange rates at least once daily, in the manner agreed upon by the Bank of Korea and the counterpart country's central bank.
② Korean local currency direct transaction banks must report transaction-related materials (including relevant materials regarding sub-accounts under Article 2-37, Paragraph 1, Item 1) to the Governor of the Bank of Korea, as per Article 10-21-2, Paragraph 3 of the Regulations.
③ Korean local currency direct transaction banks must comply with guidelines agreed upon by the Bank of Korea and the counterpart country's central bank regarding the operational structure and methods of the local currency direct transaction (LCT) system and related obligations, in addition to Paragraphs 1 and 2.
④ Foreign exchange banks and foreign exchange intermediary companies must promptly submit materials requested by the Director under Article 2-38, Paragraph 2 regarding the selection of local currency direct transaction banks.
The Director may cancel the selection of foreign exchange banks selected as Korean local currency direct transaction banks if they fall under any of the following items:
The financial soundness criteria recognized by the Governor of the Bank of Korea under Article 7, Paragraph 8 of the Decree and Article 1-3, Paragraph 2 of the "Guidelines on Foreign Exchange Transactions of Foreign Financial Institutions" (hereinafter referred to as the "Guidelines") refer to cases meeting all of the following items:
① The Director may request necessary materials and information from overseas foreign exchange business handling institutions (including those seeking registration for overseas foreign exchange business) under Article 2-2, Paragraph 2, Article 2-6, Paragraph 3, Article 4-2, Article 6-1, etc. of the Guidelines.
② Among the materials and information under Paragraph 1, transaction information necessary for the Governor of the Bank of Korea to verify transaction details of overseas foreign exchange business handling institutions under Article 4-2, Paragraph 1, Item 2 of the Guidelines, and other information deemed necessary by the Governor of the Bank of Korea under Article 4-2, Paragraph 2, Item 3 of the Guidelines, shall be determined by the Director.
① The Director supervises the compliance of overseas foreign exchange business handling institutions with laws, regulations, and guidelines, and Bank of Korea regulations, orders, and instructions, as specified in Article 6-1 of the Guidelines.
② If overseas foreign exchange business handling institutions violate the laws and regulations under Paragraph 1, the Director may take any of the following measures:
① Inspections of overseas foreign exchange business handling institutions under Article 35, Paragraph 4, Item 1, Sub-item a of the Decree, Article 6-1, Paragraph 2, and Article 6-2, Paragraph 1 of the Guidelines are conducted by the Director in writing.
② Notwithstanding Paragraph 1, the Director may conduct on-site inspections of overseas foreign exchange business handling institutions if any of the following items apply:
③ Standards, methods, procedures, and other necessary matters for written inspections under Paragraph 1 and on-site inspections under Paragraph 2 shall be determined by the Director.
① Inspections of related parties under Article 35, Paragraph 4, Item 1, Sub-item a of the Decree, Article 6-1, Paragraph 2, and Article 6-3, Paragraph 1 of the Guidelines may be conducted by the Director by requesting inspections from the Financial Supervisory Service or participating jointly in inspections conducted by the Financial Supervisory Service. In this case, Articles 6-2 to 6-5 apply mutatis mutandis.
② If it is judged that separate inspections are necessary, such as when timely inspections of related parties cannot be conducted through the request for inspections or joint inspection participation methods under Paragraph 1, making it difficult to fully achieve inspection purposes, the Director may conduct inspections after consulting with the Minister of Economy and Finance.
③ Standards, methods, procedures, and other necessary matters for inspections under Paragraph 1 or 2 shall be determined by the Director.
Foreign exchange intermediary companies must comply with relevant laws and regulations and maintain fair, prompt, and accurate intermediation to maintain foreign exchange market trading order.
If foreign exchange intermediary companies are entrusted with intermediating transactions, they must not become the counterparty to the transaction and establish the transaction themselves without intermediating the transaction.
The heads of foreign exchange intermediary companies authorized to announce exchange rates by the Minister of Economy and Finance must calculate the buying/selling standard rates and announced buying/selling standard rates specified in Article 1-2, Paragraph 7, Item 7 of the Regulations, and notify the Minister of Economy and Finance, the Governor of the Bank of Korea, and the heads of each foreign exchange business handling institution 30 minutes before the start of business daily.
The heads of foreign exchange intermediary companies must report the status of intermediated transactions and details of intermediary fee decisions to the Governor of the Bank of Korea, in the manner determined by the Director.
The Director may request foreign exchange intermediary companies to submit necessary materials.
① The Director supervises the compliance of foreign exchange intermediary companies with laws, regulations, and guidelines, and Bank of Korea regulations, orders, and instructions, as specified in Article 2-42 of the Regulations.
② If foreign exchange intermediary companies violate the laws and regulations under Paragraph 1, the Director may take any of the following measures:
① Inspections of foreign exchange intermediary companies under Article 35, Paragraph 4, Item 1, Sub-item b of the Decree and Article 2-42 of the Regulations may be conducted by the Director at least once a year through written inspections or on-site inspections.
② Standards, methods, procedures, and other necessary matters for inspections under Paragraph 1 shall be determined by the Director.
① When handling permissions or reporting approvals entrusted under the Decree and Regulations, matters specified in Article 18, Paragraph 3 of the Act, Article 29, Paragraph 3 of the Decree, and Article 9-38 of the Regulations must be reviewed, and detailed review criteria for each item shall be determined by the Director.
② Processing procedures for reporting specified in the Decree and Regulations shall be determined by the Director.
Specific matters, such as business processing standards and procedures for post-management under Article 10-9 and 10-10 of the Regulations, shall be determined by the Director.
Specific matters, such as approval categories, processing periods, delegated regional headquarters, submitted documents, and other necessary matters for permissions, reporting approvals, or reporting under Article 5-1, shall be determined by the Director.
① The Director may request foreign exchange business handling institutions, etc. (hereinafter referred to as "foreign exchange business handling institutions, etc.") to submit necessary materials for the rapid concentration of foreign exchange transaction information and verification of the facts of concentrated materials, under Article 39, Paragraph 7 of the Decree and Article 10-14, Paragraph 2 of the Regulations.
② Foreign exchange business handling institutions, etc. must promptly submit materials in writing or electronic documents when requested under Paragraph 1.
③ If foreign exchange business handling institutions, etc. cannot submit requested materials promptly, they must submit reasons and scheduled submission dates in writing or electronic documents.
① Requests for inspections from the Financial Supervisory Service or requests for joint participation by Bank of Korea employees in inspections of financial institutions, levy payment obligors, those handling foreign exchange business, their transaction counterparties, and related parties, under Article 35, Paragraph 4, Item 1, Sub-items d and e, and Paragraph 7 of the Decree, are as follows:
② When requesting inspections or joint participation under Paragraph 1, inspection purposes, periods, and targets must be specified in detail.
③ When conducting joint inspections under Paragraph 1, the minimum necessary material submissions may be requested from relevant financial institutions, foreign exchange transaction counterparties, and related parties to effectively conduct inspections.
④ The Director may entrust inspections of financial institutions falling under Article 35, Paragraph 4, Item 1, Sub-item d of the Decree to inspections under the "Regulations on Requests for Inspections of Bank of Korea Financial Institutions, etc."
① Employees participating in joint inspections with the Financial Supervisory Service (hereinafter referred to as "inspectors") are employees of the International Department and departments related to joint inspection request contents. The selection of inspectors and the composition of inspection teams shall be determined by the Director.
② Inspectors must comply with the following items when performing their duties:
③ Inspectors may take the following measures when performing inspection duties if necessary:
① If inspections are requested from the Financial Supervisory Service under Article 6-2, the Director must receive the inspection results from the Financial Supervisory Service and report them to the Governor of the Bank of Korea.
② If Bank of Korea employees jointly participate in inspections by the Financial Supervisory Service under Article 6-2, the Director must report Bank of Korea inspection results to the Governor of the Bank of Korea and notify the Financial Supervisory Service. If final inspection results are received from the Financial Supervisory Service, they may be reported if necessary.
③ If necessary based on inspection results under Paragraphs 1 and 2, the Director may report to the Governor of the Bank of Korea and request corrective actions from the Financial Supervisory Service for the relevant inspectees.
① The Director must check and manage post-inspection matters, such as actions by the Financial Supervisory Service, after reporting under Article 6-4, Paragraphs 1 and 2.
② If corrective actions based on inspection results are requested from the Financial Supervisory Service under Article 6-4, Paragraph 3, the Director must receive the corrective action results from the Financial Supervisory Service and report them to the Governor of the Bank of Korea.
① Inspections of reporting targets (referring to foreign exchange transaction counterparties or related parties and financial institutions, hereinafter the same) under Article 35, Paragraph 4, Item 1, Sub-item r of the Decree are conducted by the Director.
② The Director may set necessary matters, such as inspection standards, for inspections under Paragraph 1.
① If reporting targets under Article 7-1, Paragraph 1 violate foreign exchange transaction laws, the Director may take any of the following measures:
② If the Director takes measures under Item 3 of Paragraph 1, they must notify the heads of each foreign exchange bank of the details of the measures.
① When foreign exchange business handling institutions, etc., levy payment obligors, or reporting targets make reports related to the implementation of the Regulations and these Detailed Rules, they must submit them to the Governor of the Bank of Korea, in the manner determined by the Director.
② Matters regarding reports under Article 37, Paragraph 3, Item 11, Article 37, Paragraph 3, Item 13, Sub-item b of the Decree, and Article 10-3 of the Regulations shall be determined by the Director.
Specific matters necessary for the implementation of these Detailed Rules shall be determined by the Director.
① (Effective Date) These Detailed Rules take effect from April 1, 1999.
② (Transitional Measures for Permissions, etc.) Transactions already recognized under the previous "Detailed Rules for Handling Foreign Exchange Management Business" before the implementation of these Detailed Rules are deemed recognized under these Detailed Rules.
③ (Transitional Measures for Confirmation of Duplicate Designation of Transaction Foreign Exchange Banks) Until the foreign exchange information concentration institution performs the business of confirming duplicate designations of transaction foreign exchange banks, the previous "Detailed Rules for Handling Foreign Exchange Management Business" applies to matters such as reporting on designations of transaction foreign exchange banks and measures related to duplicate designations.
④ (Abolition of Detailed Rules for Handling Foreign Exchange Management Business) The "Detailed Rules for Handling Foreign Exchange Management Business" are abolished simultaneously with the implementation of these Detailed Rules.
① (Effective Date) These Detailed Rules take effect from January 1, 2001.
② (Transitional Measures for Reporting, etc.) Transactions already recognized under the previous Detailed Rules before the implementation of these Detailed Rules are deemed recognized under these Detailed Rules.
(Middle omitted)
① (Effective Date) These Detailed Rules take effect from March 25, 2008.
② (Transitional Measures for Extension of Deadlines) For foreign currency loans falling under Article 2-9, with maturities arriving after January 1, 2008, among foreign currency loans conducted before August 10, 2007, Article 2-9 does not apply for 2 years from the maturity date.
① (Effective Date) These Detailed Rules take effect from October 27, 2008.
② (Special Cases for Purpose Restrictions) Article 2-9 does not apply to foreign currency settlement funds arising from currency option transactions for hedging purposes concluded by domestic export enterprises before the implementation date of these Detailed Rules.
① (Effective Date) These Detailed Rules take effect from December 1, 2008.
② (Exclusion of Application) Article 2-9 does not apply to foreign currency loans falling under Article 2-9 and loans extending the maturities of such loans as of the implementation date of these Detailed Rules.
These Detailed Rules take effect from March 3, 2009.
① (Effective Date) These Detailed Rules take effect from July 1, 2010.
② (Transitional Measures) Article 2-9 shall not apply to foreign currency loans handled in accordance with the previous rules prior to the effective date of these Rules, and to foreign currency loans extending the maturity of such loans.
Supplementary Provisions <July 9, 2010>
① (Effective Date) These Rules shall come into force on October 9, 2010.
② (Limit Management During Grace Period) Notwithstanding paragraph 1, the detailed rules necessary for the application of Article 2 and 3 of the Supplementary Provisions of the "Foreign Exchange Transaction Regulations" (Ministry of Strategy and Finance Notice No. 2010-14) shall apply from the date such Notice was issued. ③ (Application Suspension) Notwithstanding paragraphs 1 and 2, from the date of issuance of the "Foreign Exchange Transaction Regulations" (Ministry of Strategy and Finance Notice No. 2010-14) until the effective date, forward foreign exchange position limits shall be managed based on the balance on each business day.
Supplementary Provisions <July 15, 2011>
These Rules shall come into force on July 25, 2011.
Supplementary Provisions <July 26, 2011>
These Rules shall come into force on August 1, 2011.
Supplementary Provisions <January 18, 2013>
① (Effective Date) These Rules shall come into force on January 18, 2013.
② (Application Example Regarding Calculation of Foreign Exchange Stability Levy) The amended provisions of Article 2-15, Paragraph 2 and 3, Article 2-15-2, and Article 2-17, Item 1 and 3 shall apply to the levy payment portion of the 2013 business year.
Supplementary Provisions <December 23, 2014>
These Rules shall come into force on January 1, 2015.
Supplementary Provisions <January 27, 2015>
These Rules shall come into force on February 2, 2015.
Supplementary Provisions <June 24, 2015>
Article 1 (Effective Date) These Rules shall come into force on July 1, 2015.
Article 2 (Application Example Regarding Method of Calculating Balance of Non-Deposit Foreign Currency Liabilities, etc.) ① Notwithstanding Article 2-15, Paragraph 1, the balance of non-deposit foreign currency liabilities, etc., from July 1, 2015, to the end of the 2015 business year, shall be calculated as the average of the month-end balances during that period.
② In the case of foreign exchange banks, the previous regulations shall apply to the balance of non-deposit foreign currency liabilities, etc., for the period from the start of the 2015 business year to June 30, 2015. In this case, the balance of non-deposit foreign currency liabilities, etc., from the start of the 2015 business year to June 30, 2015, shall be calculated as the average of the daily balances during that period, notwithstanding Article 2-15, Paragraph 1 of the previous Rules. ③ Whether financial institutions, etc., listed in Item 7 of Article 21-2 of the Enforcement Decree are liable for the levy for the 2015 business year shall be determined based on the amount calculated in Paragraph 1.
Article 3 (Application Example Regarding Method of Calculating Levy) ① The levy for the 2015 business year for financial institutions, etc., listed in Item 7 of Article 21-2 of the Enforcement Decree shall be calculated by multiplying the balance of non-deposit foreign currency liabilities, etc., calculated by applying Article 2, Paragraph 1 of the Supplementary Provisions, by the amended assessment rate. However, to impose the levy only for the period after July 1, 2015, the calculation shall additionally multiply by the ratio of the number of months from July 1, 2015, to the end of the 2015 business year divided by 12.
② The levy for the 2015 business year for foreign exchange banks shall be calculated by calculating the levy amounts for the period from the start of the 2015 business year to June 30, 2015, and the period from July 1, 2015, to the end of the 2015 business year, respectively, according to the relevant provisions, and then summing them after multiplying each by the proportion of the respective period to the 2015 business year (applying daily basis for periods before June 30, 2015, and monthly basis for periods after July 1, 2015).
Article 4 (Special Case for Calculating Deduction Amount for Foreign Exchange Banks Selected as Market Makers in the Won/Yuan Spot Foreign Exchange Market) Notwithstanding Article 2, Paragraph 2 of the Supplementary Provisions, for foreign exchange banks selected as market makers in the won/Yuan spot foreign exchange market only for the period from the start of the 2015 business year to June 30, 2015, the amount under the amended provision of Article 2-15-2, Paragraph 5 for the period from the start of the 2015 business year to June 30, 2015, shall be deducted from the balance of non-deposit foreign currency liabilities, etc., for the period from July 1, 2015, to the end of the 2015 business year.
Supplementary Provisions <March 30, 2016>
These Rules shall come into force on April 1, 2016.
Supplementary Provisions <July 18, 2017>
These Rules shall come into force on July 18, 2017.
Supplementary Provisions <April 7, 2020>
These Rules shall come into force on April 7, 2020.
Supplementary Provisions <April 20, 2022>
Article 1 (Effective Date) These Rules shall come into force on April 20, 2022.
Article 2 (Transitional Measures Regarding Calculation of Foreign Exchange Stability Levy) Notwithstanding the amended provision of Article 2-15-2, Paragraph 5, the calculation of the levy for the 2021 business year shall follow the previous Rules regarding the calculation of the levy for the 2020 business year.
Supplementary Provisions <January 2, 2024>
Article 1 (Effective Date) These Rules shall come into force on January 2, 2024.
Article 2 (Application Example Regarding Leading Banks in the Won/US Dollar Market) Notwithstanding the amended provisions of Article 2-31, Paragraph 2 and 3, for the Won/US Dollar leading banks selected in January 2024, the evaluation target period shall be from January 2023 to November 2023.
Supplementary Provisions <July 12, 2024>
These Rules shall come into force on July 15, 2024.
Supplementary Provisions <January 24, 2025>
These Rules shall come into force on February 28, 2025.
Supplementary Provisions <June 20, 2025>
These Rules shall come into force on June 30, 2025.
Supplementary Provisions <January 29, 2026>
These Rules shall come into force on February 27, 2026.
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Source: Bank of Korea — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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