OECD Information Exchange Global Forum Awards Korea's Financial Information Automatic Exchange Legal System Top Grade

[Asia Economy Reporter Kwangho Lee] The Organisation for Economic Co-operation and Development (OECD) Global Forum on Transparency and Exchange of Information for Tax Purposes held its 13th annual meeting and adopted the final report on the legal framework review of the Automatic Exchange of Financial Account Information (AEOI). On the 14th, it announced that South Korea received the highest rating in the legal framework evaluation.

The Global Forum evaluates whether member countries comply with international standards for information exchange systems and recommends institutional improvements to countries when necessary.

South Korea receiving the highest rating (In Place) in the legal framework evaluation by the Global Forum on Information Exchange signifies international recognition that South Korea is in the top group in complying with international standards to prevent tax evasion.

Since the preliminary evaluation, South Korea has made continuous efforts to comply with international standards by reflecting recommendations through related domestic tax law amendments and other institutional improvements.

If the evaluation rating is low, the country may be designated as a 'Non-cooperative Jurisdiction,' which could lead to exclusion from the list of countries subject to automatic exchange of financial information and cause disadvantages such as a decline in international credibility.

The Global Forum plans to conduct an effectiveness evaluation related to AEOI in the future. Through organic cooperation among relevant ministries, South Korea plans to make every effort to receive the highest rating in the effectiveness evaluation as well.

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