The number of individuals penalized for failing to comply with reporting obligations during overseas investments and real estate transactions has increased for the fourth consecutive year. While the total number of violations of foreign exchange regulations decreased compared to the previous year, individual violations rose.
According to the Financial Supervisory Service on July 14, the total number of foreign exchange regulation violations last year was 1,072, down by 65 from 1,137 the previous year. Among these, 629 cases resulted in fines, 350 received warnings, and 93 were reported to investigative agencies.
By type of violator, corporations accounted for 631 cases, or 58.9%, while individuals represented 441 cases, or 41.1%. The number of individual violations has increased from 317 in 2022 to 341 in 2023, 386 in 2024, and 441 last year.
In terms of transaction types, violations related to overseas direct investment were the most common, totaling 478 cases, or 44.6% of the total. This was followed by 161 cases of monetary loans, 97 cases of overseas real estate transactions, and 88 cases of securities trading.
The most common violation was the failure to report new transactions, which accounted for 577 cases, more than half of the total. There were also 372 cases where individuals did not report changes in investment amounts, maturities, or ownership names. Additionally, there were 99 cases of failure to report after-the-fact.
The Financial Supervisory Service explained that even if the investment amount is as low as $1 or if retained earnings are converted to capital without actual fund movement, the obligation to report still applies. Changes in the name of the local corporation, investment amount, location, or share transfers also require updated reporting. For overseas real estate, if a property is initially reported as jointly owned but later acquired solely, prior notification of the change is necessary. After selling real estate, a disposal report must be submitted within three months, in principle.
* This article has been translated by AI.
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