South Korea to deregulate mobile app transfer of foreign currency

South Korea's finance ministry on Tuesday announced a revision of the foreign exchange transaction law to deregulate the transfer of foreign currencies through smartphone applications.

Foreign currency transfer businesses, which had been operated only by banks, will be permitted to non-financial companies, such as mobile messengerKakao Talk' if they meet certain requirements and are registered with the regulator, according to the Ministry of Strategy and Finance.

The so-called fin-tech company, or financial technology company, had been allowed to operate the transfer of foreign currencies as much as 3,000 U.S. dollars per person and 20,000 dollars within a year when the companies sign an agreement with banks.

The revised law would reduce transfer costs as fin-tech companies don't need to send foreign currencies to banks for transfer orders from app users.

The ministry plans to discuss with the financial regulator about whether to allow the foreign currency transfer operations to other non-bank financial institutions such as securities firms and insurers.

Normal foreign exchange transactions will be made comfortable as the ministry plans to streamline procedures in foreign currency transactions.

Under the current law, transactions less than 2,000 dollars apiece and less than 50,000 dollars within a year had been exempted from submitting documents and reporting to the authorities.

The exemption will be expanded, while an ex post facto report will be introduced in purchasing tiny properties in foreign countries. Endit