The challenges of fund transfers out of Korea in 2022
Since 2003, Healy Consultants PLC assists multi-national Clients with Korean business set up, including advising the optimum strategy for unlimited funds transfers overseas:
Overseas funds transfers limits
- Before our multi-national Clients can make international payments or remit earnings overseas, foreign-owned companies are legally required to open an account with i) a Korea foreign exchange bank and ii) secure approval from the same for each transaction;
- For most business activities, the foreign exchange bank will accept overseas remittance of up to US$50,000 per year with little or no request for supporting documents;
- For amounts exceeding the above annual thresholds, our Client should expect the bank to require extra due diligence documentation to support the nature, the origin and the destination of the transfer;
- Single transfers exceeding US$10,000 per transfer will also attract higher bank scrutiny and requests for supporting documentation;
- Supporting documentation requested by banks can include: i) invoices and contracts and other business proofs to the nature of the transaction and ii) DD on the oversea beneficiary of the payment and iii) Korean translations of the same;
- Depending on the amount and the nature of the transfer, the bank can also require our Client to visit the bank branch in person, for a “know your transaction” meeting;
- For transfers completed through online banking, Korea banks are also required to request our Client to secure an “ID identification license” (locally known as a “gong in”), which purpose is to avoid identity theft;
- Because the Korean Government is concerned that cryptocurrencies are used for money laundering or to avoid Korean capital controls, banks are currently reluctant to approve international remittances if the funds are derived from cryptocurrency trading.
Overseas funds transfer solutions
- Healy Consultants PLC has business relationships that allow a max daily funds transfer limit of US$1,000,000;
- To enable our multi-national Clients execute funds transfers up to US$1,000,000, our staff will daily visit the bank branch on your behalf; to deliver the physical funds transfers instruction form;
- Set up a branch of the South Korean entity overseas, to justify the remittance of funds overseas;
- Repay a loan to the parent company of your Korean subsidiary;
- Register a Dubai offshore company with Dubai corporate bank account with a Korean bank in Dubai. The Dubai offshore company then opens a corporate bank account in Korea, with the same bank (preferably) or another Korean bank. Consequently, bitcoin \ crypto-currency profits of the Dubai company are not subject to Korean tax;
- Another great solution can be a Singapore offshore company with a Singapore corporate bank account with Woori bank Singapore. The Singapore LLC then opens a corporate bank account with Woori bank in Korea. Consequently, bitcoin / crypto-currency profits not subject to Korean tax.
- Use the funds related to crypto sales to purchase in Korean derivatives including forex futures and options. Through the brokerage account, transfer US$ out of South Korea.
- Use the funds related to crypto sales to i) locally purchase products (steel, vehicle auto parts and other products not requiring a regulatory license) and ii) sell them overseas. Clients to pay you in a non-Korea bank account.
- Inter bank funds transfer – our multi-national Client build this corporate structure i) a Singapore LLC with a local multi-currency corporate bank account with a Korean bank licensed in Singapore and ii) a Korean branch of the Singapore LLC in Seoul together with a local multi-currency corporate bank account with the same Korean bank;
- Depending on our multi-national Clients’ business and their nationality and their daily weekly funds transfer volumes, the Korean bank will facilitate unlimited funds transfers between the Korean and Singapore multi-currency corporate bank accounts.
- Press the pdf file below to view the pricing for this corporate structure:
View invoice PDF