The EUCCK recommends minimum 60 days prior industry consultation on any major new laws and regulations in the financial sector.
We appreciate the vast amount of translation of existing Laws and Regulations that started since January, 2007, however, we would recommend to focus first on the translation of new regulations and newly announced amendments of regulations, as they require our first priority attention. Amongst others, it would be desirable to allow the use of English language as official business language to conduct a bank's operations in Korea and to remove the restrictions on foreign nationals holding board seats, senior managerial positions, or essential personnel in Korea.
Regarding the industry consultation period, for the implementation of FTA, expending the period of prior announcement of legislation is in the progress, from over 20days to over 40days.
Financial Services Commission provides English version of finance related laws on its web page (www.fsc.go.kr). FSC will continue to update in any changes in the laws and especially laws that may be of concern to foreign business.
Further Relaxation of Reporting Requirements under Foreign Exchange Transaction Regulations
A relaxation of the current ”prior discussion” requirements and conversion thereof to simple post-reporting to a Foreign Exchange Banks could facilitate the cross-border global cash pooling and funding activities of multinational companies' treasury operations in Korea. [Relevant regulations: Foreign Exchange Transaction Regulation Section VII (Capital Transactions), Art. 7-13 to 7-20]
Korean government keep focusing on inconveniences on foreign exchange transaction by foreigners and have considered the ways to convenient transaction. However, reporting requirement is minimum procedure to post monitor the rapid outflow or inflow of capital or international movement of illegal capital.
