Starting next year, people will be able to send overseas remittances of up to $100,000 a year across all financial sectors without supporting documents.
The Ministry of Economy and Finance on the 8th announced a "non-document overseas remittance system overhaul." Currently, up to $100,000 a year can be remitted without documentation through banks, and up to $50,000 a year per provider through nonbank channels such as small-amount overseas remittance operators and securities firms. With this overhaul, however, starting next year up to $100,000 a year can be sent without documents regardless of the type of institution.
In addition, the "designated transaction bank system," which until now had to be designated to send any amount exceeding $5,000 per transaction, will be abolished. Going forward, individuals can freely choose a bank or a small-amount remittance operator based on preference and send up to $100,000 a year.
Even if the annual limit has been fully used, small remittances of up to $5,000 per transaction through banks will be allowed on a limited basis. However, if records show repeated remittances in this manner to circumvent foreign exchange regulations, the National Tax Service and the Korea Customs Service will be notified.
This overhaul is based on the Overseas Remittance Integrated Management System (ORIS), developed in cooperation with the Bank of Korea. It became possible as the system enables real-time integrated management of non-document remittances across all sectors. The government plans to implement it in January after a legislative notice and administrative notice this month.
A government official said the overhaul is expected to spur competition for customers across all sectors and improve the overall quality and competitiveness of overseas remittance services.