FSS Will Investigate Overseas Remittance of More than $100,000 a Year

The Financial Supervisory Service (FSS) has set out to investigate whether bank clients who sent more than $100,000 abroad broke the law or not.

On June 13, FSS revealed that it received information indicating that clients of some banks sent over $100,000 abroad within 12 months. FSS also obtained information about the client lists and the amount of remittance from banks that currently operate overseas remittances, and is investigating if the remittances were illegal. The period of time that is subject to the investigation began in January of 2003.

A high-ranking FSS official said, “We are closely analyzing the period, both the frequency and the destination of remittance, based on the submitted information. There will be direct investigation into the purpose of remittance if there is any suspected client, for example, who sent a large amount of money at one time.”

FSS will take administrative measures against or accuse those who are revealed to have bought overseas real estate or golf club memberships without reporting the purchases to the Bank of Korea, and will transmit related materials to the National Tax Service.

Despite this investigation, however, financial experts say there is no practical way to stop overseas remittance.

One such person said, “After depositing an enormous amount of money in a foreign bank in Korea, one can loan local currencies in the foreign country using the deposited money as collateral. If you want to block the overseas remittance, you should solve the feelings of uneasiness about domestic economy circumstances. Then the rich won’t want to send money abroad.”

Keuk-In Bae bae2150@donga.com