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Non-bank firms to be allowed to engage in foreign currency trading

All News 11:36 June 14, 2016

SEJONG, June 14 (Yonhap) -- The South Korean finance ministry said Tuesday that it will allow non-bank institutions to directly engage in the foreign currency transfer business as part of its deregulation drive to promote the local financial technology sector.

Under the current law, only banks are entitled to remit foreign currencies abroad, while non-bank companies must send money to their foreign partners through one of those banks and pay its commissions.

The Ministry of Strategy and Finance said that it will revise the foreign exchange law to allow non-banking companies such as fintech firms to directly deal with overseas remittances without such brokers.

The move came after the ministry in March permitted fintech firms, including mobile payment service providers, to enter the overseas money transfer market in partnership with local banks.

The government will expand the overseas transfer limit from US$50,000 so that people can send money to their overseas acquaintances without such limitations. The detailed guidelines will be unveiled next year, it added.

The law revision will also include the lifting of the $500,000 ceiling on overseas property purchases in order to let people buy foreign real estate after just reporting it to the authorities, said the ministry.

The ministry said it will submit the bill to parliament later this month and complete other legal procedures before the first half of next year.


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