"Customs and Foreign Exchange Investigations Increasing Corporate Burden, Proactive Response Needed"

AMCHAM and Bae, Kim & Lee Hold Insight Session
on Corporate Strategies for Customs and Foreign Exchange Investigations
Emphasis on Proactive Risk Management and Compliance in a Complex Regulatory Environment

There is a growing consensus that, amid increasing uncertainty in the global trade environment, customs and foreign exchange investigations are placing an even greater burden on companies. Analysts point out that enhancing understanding of the new regulatory landscape and taking proactive and effective measures to manage risks have emerged as critical management tasks.

The American Chamber of Commerce in Korea (AMCHAM) announced on the 2nd that it jointly held an Insight Session with the law firm Bae, Kim & Lee on the 30th of last month. The seminar, held at the Bae, Kim & Lee headquarters in Jongno-gu, Seoul, was attended by more than 140 compliance and risk management professionals from AMCHAM member companies as well as major domestic and international corporations and organizations.

James Kim, Chairman and CEO of the American Chamber of Commerce in Korea (AMCHAM), is delivering the opening speech at the Insight Session held at the headquarters of the law firm Bae, Kim & Lee in Jongno-gu, Seoul, on the 30th of last month. American Chamber of Commerce in Korea

James Kim, Chairman and CEO of AMCHAM, stated, "In a rapidly changing global regulatory environment, customs and foreign exchange investigations have become not just potential risks, but immediate and significant management challenges for many companies." He added, "Even as the regulatory environment becomes increasingly complex, we will provide timely strategies so that companies can proactively identify risks, respond effectively, and achieve compliance management."

Lee Junki, Managing Partner at Bae, Kim & Lee, said, "It is more important than ever for companies to clearly understand the complex and evolving customs and foreign exchange regulatory environment and to proactively develop response strategies." He emphasized, "Violations of the Customs Act or the Foreign Exchange Transactions Act do not simply end with tax assessments, but often result in administrative sanctions such as fines, and in many cases, escalate to more serious penalties such as criminal prosecution, so companies need to be especially vigilant."

Jeremy Everett, Foreign CPA at Bae, Kim & Lee, presented an analysis of the investigation trends and key issues of customs and foreign exchange authorities in the first session, based on real cases experienced by Korean companies.

Everett explained, "Customs investigations have a much broader legal impact than merely examining customs declarations, country of origin, or applicable HS codes (Harmonized System codes)." He continued, "The Korea Customs Service carries out investigations to ensure compliance with the law, and violations can result in sanctions and even criminal prosecution."

The American Chamber of Commerce in Korea (AMCHAM) jointly held an insight session on the topic of customs and foreign exchange investigation response strategies with the law firm Bae, Kim & Lee on the 30th of last month. The American Chamber of Commerce in Korea

The second session focused on 'Industry-Specific Analysis and Case Studies.' Presentations were given on response strategies and risk mitigation measures that companies can actually implement, with a focus on industry-specific cases.

Seo Seungwon, Attorney at Bae, Kim & Lee, introduced practical cases related to the requirements for issuing revised import tax invoices following amendments to the Value-Added Tax Act, issues regarding set-off and third-party payments under the Foreign Exchange Transactions Act, and issues related to import requirements. He also provided guidance on utilizing the Advance Customs Valuation Arrangement (ACVA) system for multinational enterprises.