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 a seasoned expert in international financial regulations and foreign exchange transactions, I bring forth a wealth of knowledge on the intricacies of currency declaration requirements for individuals traveling to and from South Korea. My expertise is not merely theoretical; I have practical experience and a deep understanding of the legal framework surrounding these matters.
Now, let's delve into the concepts used in the provided article, focusing on the Declaration of Foreign Currency for individuals:
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Foreign Currency Declaration Requirements:
- Korean residents or non-residents carrying means of payment (international payment, KRW notes, or cashier’s checks) less than USD 10,000 out of Korea are not required to report.
- Non-residents leaving with foreign payment within the amount carried at their recent arrival don't need to report, provided they have confirmation from the head of the foreign exchange bank.
- Residents of Korean nationality transporting means of payment exceeding USD 10,000 for general overseas travel expenses must report it to the head of the competent Customs office.
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Special Cases and Precautions:
- Overseas Koreans, Korean expatriates, overseas students, and travel agents carrying expenses exceeding USD 10,000 must obtain confirmation from the head of the foreign exchange bank.
- Payment of commodity and capital transactions should be reported based on relevant rules and regulations before departure.
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Departure Procedure for Cash Courier:
- Residents and non-residents carrying means of international payment, KRW notes, or cashier’s checks not more than USD 10,000 do not require a report.
- Different rules apply for overseas relocation expenses, travel expenses, and confirmation from the foreign exchange bank.
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Declaration upon Arrival:
- No permission or declaration is needed for means of payment not exceeding USD 10,000.
- Importation of foreign currency, KRW notes, or checks above USD 10,000 requires reporting to Customs.
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Reporting Procedure upon Arrival:
- Travelers entering with foreign currency above USD 10,000 must mark 'yes' on the Traveler Declaration Form and submit it to Customs.
- Failure to report may result in fines or penalties.
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Penalties:
- Export or import of means of payment without filing a report can lead to imprisonment or fines, as per Article 32 of the Foreign Exchange Transactions Act.
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Legal Framework:
- Relevant laws include Article 17 of the Foreign Exchange Transactions Act (FETA), Article 31 of the Enforcement Decree of the FETA, and Chapter 6 of the Foreign Exchange Transactions Regulations.
In conclusion, adherence to these regulations is crucial to avoid legal consequences, and the currency declaration process serves as a deterrent against illicit activities such as drug funds or illegal money laundering.
