Sanctions against Pile of Illegal Foreign Exchange Transactions

One hundred sixty-six people for illegal foreign exchange transactions (including corporate bodies) have been prosecuted for remitting money overseas, violating the foreign exchange control law.

On Friday, the Financial Supervisory Commission pronounced an administrative measure, including the prohibition of foreign exchange transactions, to 89 individuals who were confirmed to have conducted illegal foreign exchange transactions and also 77 corporate bodies.

The Financial Supervisory Commission notified 13 individuals and six corporate bodies with criminal natures to the public prosecutor. Also, it notified 275 individuals for tax evasion, unearthed during the investigation process, and 64 corporate bodies to the Nation Tax Service and the Korea Customs Service (KCS).

According to the Financial Supervisory Commission, the “A” corporation, which has been notified to the public prosecutor, remitted through the bank, stretching over 20 incidents, a total of $1.8 million to China and invested in a local golf club during the last year.

Thirteen people, including L, remitted 730 million won to Shanghai under the titular of a real estate brokerage business employee and bought and owned an apartment there from July of last year until February of this year.

Furthermore, there are cases of acquisition of an oversea golf club membership after rendering some money through diversified remittances or buying stocks of foreign enterprises.

An individual or a corporate body who has been punished with an administrative measure can not carry out foreign exchange transactions for a period of three months up to a year. The individuals and the corporate bodies who have been notified to the public prosecutor will go through an investigation of whether they violated the foreign exchange control law. When notified to the Nation Tax Service and the KCS, they will go through an investigation of whether they had paid the taxes properly in the process of foreign exchange transactions, or whether they abided by the import-export procedures.

Suk-Ho Shin kyle@donga.com