International Tax Coordination Law of Korea, if Korean resident individuals or
domestic companies have financial bank accounts opened with overseas financial
institutions and the total value of such accounts exceeds KRW 500 million on
any last day of each month of the relevant year, such Korean residents and
domestic companies are required to file a report on their overseas financial bank
accounts to the tax office during the first day of June to the 30th of June of
the following year. As the original filing deadline of June 30, 2019 falls on
weekend, the filing for year 2018 is extended to July 1, 2019.
non-reporting or underreporting, Korean resident individuals or domestic
companies concerned shall be subject to penalties ranging between 10 - 20% max
depending on non-reported or underreported amount. If the non-reported or
underreported amount exceeds KRW 5 billion, Korean resident individuals or
domestic companies concerned can be subject to imprisonment of up to 2 years or
a fine of up to 20% of the amount in violation.
Individual and legal entities
that can be exempt from this FBAR reporting requirement are as follows:
foreign resident who has/had his/her domicile or place of residence in the
Republic of Korea for not more than five years in total from ten years before
the end of the relevant year subject to reporting.
Korean national residing abroad who can be determined as nonresident according
to the IITL.
government organizations and public organizations/financial institutions
defined under the provisions of the Public Organization Management Law of Korea.
individual whose overseas financial bank account information is available to
the Korean tax authorities for verifications through a FBAR report submitted to
the tax authorities by another “related individual of overseas financial bank
account”. The related individual of overseas financial bank account is defined
as all individuals who hold the joint bank account (공동명의계좌) or the actual beneficial owner of the
account opened under the borrowed name (차명계좌).