KITA (Chairman: Jin Sik Yoon) and DR & AJU Law Group LL co-hosted a lecture on Foreign Exchange Transaction Scheme and Exchange Rate Forecast for trading companies on Tuesday, 3 February at KITA HQs in Seoul.
As the Korean Won is under ongoing pressure of defending its value against major currencies, more law enforcement operations are being implemented by the Korean government to prevent illegal foreign currency trading activities, including uncollecting export proceeds, irregular trade settlements and property moving to foreign countries to name a few. This is resulting in the greater importance of foreign currency trading in business activities of trading companies in general, such as signing contracts, settlement and overseas investments. As a failure of making even minor declarations and reports can lead to punishment and fines, trading companies are highly recommended to have a full understanding of relevant regulations and adhere to such regulations.
The lecture was organised in response to more rigourous foreign exchange inspection by the Korea Customs Service and aimed at conveying information to be in full compliance with the Foreign Exchange Transactions Act and potential measures to hedge currency risks. The lecture was attended by approximately 150 people and it highlighted a) up-to-date trend of the foreign exchange inspection led by the Korea Customs Service and recommendable response measures for companies, b) requirements mandated by the Foreign Exchange Transactions Act and well-known cases of infringement and c) Korean Won exchange rate forecast during the first half of 2026 and measures of hedging exchange rate risks.
Jeong Sik Choi, the Head of the FTA & Trade Support Centre, said, "As foreign exchange transactions happen on an everyday basis for trading companies, it is critically important for companies to be equipped with measures for priliminary checkups and establish an internal system that ensures full compliance with relevant regulations." He added, "We hope trading companies will make the best use of this lecture to have a full understanding of complex foreign exchange transation regulations and minimise the possibility of unnecessarily being involved in breaching regulations, which will lead to government inspections."