Transferring money into and out of South Korea can be done in several ways. The South Korean won is a controlled currency, and South Korean tax laws are thorough. That means you may face limits on how much you can send and what your recipient may owe for taxes on the transferred amount.
How South Korea regulates large remittances
South Korea has extensive tax regulations that cover incomes of all types, including gifts. According to our research, South Korean gift tax laws work similarly to the country’s inheritance tax laws.
Your recipient may have to report the amount gifted and file it along with instructions on the deductions. Because tax law is so involved, your recipient should likely talk to a tax professional about what exactly they might owe, which forms to use and when to file.
What are the penalties in South Korea if my recipient fails to file?
Penalties vary based on the severity of the infraction, among other factors. A percentage of the amount that’s overdue may be one resulting penalty. It’s a rate that could build over time, too.
Your recipient can seek out advice from a tax professional to help avoid running into any penalties in the first place.
Do I have to report large remittances out of the US?
In short, yes. Transfer services may report amounts as small as $1,000 to the IRS, so it’s likely that a large sum will be flagged. Any amount over $10,000 will likely need to be reported, but the exact threshold depends on the purpose of your transfer and how big it is.
Because the South Korean won is a regulated currency, you may run into some limits or additional filing requirements when attempting to transfer money into or out of the country. On top of limits as a result of currency controls, banks and transfer services may have limits of their own.
How can my recipient in South Korea get the money?
Your recipient can receive money in several different ways, including a direct deposit into their bank account and cash pickup. The method used to send and receive the funds will impact how long they take to arrive and how much the transfer will cost.
South Korea has several cash pickup locations in Seoul, Busan and Incheon, but it may not be the best option if your recipient lives in a smaller town. To get a full look at how to send money to South Korea, check out our comprehensive guide.
Transferring large sums of money to South Korea could have tax implications for both you as the sender, and your recipient. The type of tax applied and forms you need to fill out will depend on a number of factors. Before making a transfer of $10,000 or more, you and your recipient may want to talk with your respective tax professionals to get the full scope of what needs to be reported and how.
For a better look at transferring money across borders, take a look at our guide and compare services.
Frequently asked questions
Yes, but you’ll need to mind any limits. Nonresidents can take up to 8,000,000 KRW into South Korea in local currency, and an unlimited amount in foreign currencies — just so long as it’s declared.
The easiest way to avoid getting bothered by the IRS is to follow the regulations it sets. That may be a disappointing answer, but it can keep you out of unnecessary trouble.
Penalties vary by the seriousness of the infraction. One common penalty is an interest rate getting applied to the amount that you owe.
Whether products shown are available to you is subject to individual provider sole approval and discretion in accordance with the eligibility criteria and T&Cs on the provider website.
Rhys Subitch is a personal finance editor at Bankrate and former loans editor at Finder, specializing in consumer and business lending. Rhys has nearly a decade of experience researching, editing, and writing for startups, Fortune 500 companies, universities and websites. They hold a BA in sociology and a certificate of editing from the University of Washington. See full bio
Rhys's expertise
Rhys has written 52 Finder guides across topics including:
How likely would you be to recommend Finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Advertiser Disclosure
finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.