Declaration of Foreign Currency
Declaration of Foreign Currency
Foreign currency declaration upon departure
If Korean residents or non-residents carry means of payment (means of international payment, KRW notes, or cashier’s checks) less than USD 10,000 out of Korea, no report is required. In addition, if a non-resident leaves the country with the means of foreign payment within the amount carried at his or her recent arrival, he or she does not need to report it. Also, if he or she receives confirmation from the head of the foreign exchange bank (the possession of certificate of confirmation is required) when he or she withdraws from a credit card issued overseas or withdraws from an overseas account, he or she does not need to report it. In addition, if a resident of Korean nationality transports means of payment (means of international payment, KRW notes, or cashier’s checks) that exceeds USD 10,000 for general overseas travel expenses, he or she can take it with him or her if he or she reports it to the head of the competent Customs office.
Precautions
- If overseas Koreans, Korean expatriates, overseas students, and travel agents carry overseas travel expenses exceeding USD 10,000, or if a foreign resident intends to leave the country with earned income in Korea, he/she must obtain confirmation from the head of the foreign exchange bank (in this case, there is no separate customs declaration, but a certificate of confirmation must be presented at the request by the Customs office).
- Payment of commodity transaction and capital transaction should be reported based on the relevant rules and regulations before departure. (Ex: Payment of commodity transaction should be reported to the Bank of Korea Governor)
Departure procedure for cross-border cash courier including foreign currency, etc.
- The table below shows classification of and information on cash courier or other means of payment during departure both for residents and non-residents.
| Classification | Korean residents | Non-residents | ||
|---|---|---|---|---|
| Means of international payment, KRW notes, or cashier’s checks | not more than USD 10,000 in total | - | - | |
| Over USD 10,000 | Overseas relocation expenses for overseas migrants, travel expenses for overseas travelers, overseas students, and overseas residents | Confirmation from the head of the foreign exchange bank (the possession of certificate of confirmation is required) | Not applicable | |
| General overseas travel expenses for general overseas travelers | Report to the head of the competent Customs office | Not applicable | ||
| Means of international payment within the volume carried his or her recent arrival | A separate report for use, regardless of what is brought from abroad. (including foreign residents) | No report required certificate of declaration is required | ||
| Means of international payment obtained at casino and re-exchanged | Not applicable | (certificate of declaration is required) | ||
| Other funds, such as payments for goods, securities acquisition, real estate purchases, overseas deposits, etc. | Report not through foreign exchange banks or report capital transactions (separate from customs declaration | Report required | ||
Relevant rules and regulations
- Article 17 of the Foreign Exchange Transactions Act (FETA), Article 31 of the Enforcement Decree of the FETA
- Chapter 6 of the Foreign Exchange Transactions Regulations
Foreign currency declaration upon arrival
If you bring in means of payment not exceeding USD 10,000 to Korea, you do not need any permission or declaration. In addition, there is no need to report or authorize the importation of promissory notes, letters of credit, or bills of exchange. However, if you enter the country with foreign currency, KRW notes, or checks above USD 10,000 or the equivalent in total, you must report it to the Customs. The same goes for cashier's checks in Korean won.
Reporting procedure
- Mark yes on no. 3 of Traveler Declaration Form with entering specific amount, submit it to Customs official, and receive The Certificate of Foreign Currency Declaration (A person failed to report is subject to fines or penalties)
※ The Certificate of Foreign Currency Declaration cannot be issued after entering Korea (after leaving the immigration)
* T1 Airport Baggage Inspection Section 1 ☎ 032-722-4422, T2 Airport Baggage Inspection Section 2 ☎ 032-723-5119
Relevant rules and regulations
- Article 17 of the Foreign Exchange Transactions Act (FETA), Article 31 of the Enforcement Decree of the FETA
- Chapter 6 of the Foreign Exchange Transactions Regulations
Penalty
- Any person who export or import any means of payment including foreign currency without filing a report shall be punished by imprisonment with labor not more than 1 year or by a fine (Article 32 of the Act) not exceeding one hundred million won: Provided that the triple value of the object related to the violation exceeds one hundred million won, the fine shall not be more than the triple value of such object.
※ We would like to ask for your understanding and active cooperation with the procedures as the cash courier reporting at the time of entering and leaving the country is operated to crack down on drug funds or illegal money laundering.
As an expert in international finance and foreign exchange regulations, I can confidently delve into the intricacies of the "Declaration of Foreign Currency" as outlined in the provided article. My knowledge extends to the relevant laws and regulations, ensuring a comprehensive understanding of the processes involved.
Firstly, the article discusses the regulations for individuals carrying foreign currency upon departure from Korea. Notably, if the means of payment (including international payment methods, KRW notes, or cashier's checks) is less than USD 10,000, residents and non-residents are not required to file a report. Non-residents leaving with the same amount as they arrived with, or those who receive confirmation from a foreign exchange bank, are also exempt.
For residents of Korean nationality carrying over USD 10,000 for general overseas travel expenses, reporting to the Customs office is mandatory. This reporting requirement applies to overseas Koreans, Korean expatriates, overseas students, and travel agents when their overseas travel expenses exceed USD 10,000.
The article also emphasizes the need for confirmation from the head of the foreign exchange bank in specific cases, such as when overseas Koreans, expatriates, students, or residents intend to leave the country with earned income in Korea.
Furthermore, the article outlines the departure procedures for cross-border cash couriers, including foreign currency. It provides a classification of means of payment for both residents and non-residents, detailing the reporting requirements based on the amount carried.
The second part of the article discusses the declaration of foreign currency upon arrival in Korea. Notably, there is no need for permission or declaration for means of payment not exceeding USD 10,000. However, amounts exceeding this threshold require reporting to Customs, with specific procedures outlined, including marking the Traveler Declaration Form and receiving a Certificate of Foreign Currency Declaration.
The article emphasizes the legal consequences for failing to report means of payment during import or export, with potential penalties including imprisonment and fines. These penalties are in place to combat illegal activities such as drug funds or money laundering.
In summary, the Declaration of Foreign Currency in Korea involves meticulous reporting procedures for individuals departing or arriving, with specific thresholds triggering reporting requirements. The regulations aim to ensure transparency in financial transactions and curb illicit activities associated with cross-border movements of funds.
