Annual Reporting Obligation Threshold for Overseas Direct Investment Raised from $2 Million to $3 Million

Extension Allowed for 3-Year Remittance Period for Overseas Migrants

[Image source=Reuters Yonhap News]

[Sejong=Asia Economy Reporter Moon Chaeseok] The criteria for the scale of overseas direct investment, which must be reported annually to the foreign exchange authorities, will be relaxed. The remittance deadline for migration expenses of overseas migrants, currently set at three years, can be extended.

The Ministry of Economy and Finance announced on the 29th that the amendment to the Foreign Exchange Transaction Regulations containing these details will be implemented from January 3rd next year.

The government will change the criteria for the scale of overseas direct investment that requires annual performance reporting from the existing cumulative investment amount exceeding 2 million dollars to exceeding 3 million dollars. Overseas direct investors exceeding this criterion are obligated to submit an annual business performance report specifying the management status to the authorities every year. By raising the standard, the government explained that 869 companies, about 15.6% of all investors as of last year, will be exempt from submitting the annual business performance report.

The government also established a regulation that allows exemption from the obligation to submit post-management reports on overseas direct investment when it is difficult to submit due to unavoidable reasons such as local disasters or calamities. The obligation to attach an audit report received from a local accounting firm when submitting post-management reports such as the annual business performance report has been abolished. The remittance deadline for migration expenses of overseas migrants, currently set at three years, can be extended. This reflects field opinions that the permanent residency acquisition process may take more than three years.

The government plans to launch a task force (TF) for foreign exchange system reform starting next year. Through this, it plans to comprehensively reform the foreign exchange transaction legal system by expanding participants and scale of foreign exchange transactions and advancing transaction methods.

This content was produced with the assistance of AI translation services.