Extension of Foreign Exchange Transaction Post-Reporting Deadline to August

[Asia Economy Reporter Kwangho Lee] The government has decided to extend the deadline for post-reporting of foreign exchange transactions due to the novel coronavirus infection (COVID-19).

On the 27th, the Ministry of Economy and Finance explained the reason for the extension, stating, "Due to unavoidable disaster situations such as the recent spread of COVID-19 and local circumstances, overseas companies are finding it difficult to fulfill their post-reporting obligations under the Foreign Exchange Transactions Act, raising concerns about excessive fines."

Accordingly, the submission deadline for 13 types of post-report reports related to local finance, overseas direct investment, establishment of overseas branches, and acquisition of foreign real estate by residents, which are subject to post-reporting obligations under the Foreign Exchange Transactions Act, will be extended until the end of August this year.

First, for post-reports whose reporting deadlines have already passed during the COVID-19 spread period, the deadline will be extended until the end of August through a notification from the Minister of Economy and Finance. For cases where the reporting deadline is due between May and August, the deadline will also be extended through an official interpretation.

The Ministry of Economy and Finance stated, "We plan to review additional deadline extensions while monitoring the progress of COVID-19."

Meanwhile, if post-reporting is not completed within the deadline, a fine of 7 million KRW per case will be imposed.