Recently, many people are preparing to return to Korea permanently, or are planning to stay in Korea long-term on an F-4 visa. If you fall into either of these categories, there is one important issue you should review while living in Korea: the Overseas Financial Account Reporting System.

Today, I will explain this system in a simple and concise way, focusing only on the key points.

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Who Is Required to Report?

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The Overseas Financial Account Reporting System requires Korean residents to report information on financial accounts they hold overseas to the National Tax Service (NTS).
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The purpose of this system is to prevent hidden assets, deter tax evasion, and ensure transparency in financial transactions.

🔖The 183-Day Residency Rule and the 500 Million KRW Threshold

You are required to report if the total balance of your overseas financial accounts exceeds 500 million KRW and you qualify as a Korean resident.

A “Korean resident” refers to a person who stays in Korea for 183 days or more within a calendar year.
Therefore, if you are planning to return to Korea, pay close attention to this 183-day residency standard when determining whether you are subject to reporting.

The total overseas account balance is not calculated as a monthly average. Instead, it is based on the highest end-of-month balance during the year.

For example, if your balance remained at 450 million KRW from January through November, but exceeded 550 million KRW at the end of December, you become subject to reporting, even if the excess occurred only once.

Also note that even if you reported in the past, you must report again if your overseas account balance exceeds 500 million KRW in the relevant year.

Reportable Accounts and Exemptions

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All financial accounts opened at foreign financial institutions are subject to reporting. This includes:

• Overseas bank accounts
  
  
• Accounts at overseas branches of Korean financial institutions
  
  
• Foreign stock and securities accounts
  
  
• Insurance products, trusts, savings accounts, and other financial assets
  
  

However, you are exempt from reporting if you fall under any of the following categories:

✔ Foreign residents
✔ Individuals whose total period of residence in Korea over the past 10 years is five years or less
✔ Overseas Koreans whose stay in Korea during the reporting year is 183 days or fewer
✔ Individuals whose total overseas account balance is below 500 million KRW

Reporting Period and Penalties for Non-Compliance

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The reporting period is from June 1 to June 30 each year.
During this period, you must report overseas account balances held from January 1 to December 31 of the previous year.

For example, in June 2025, you would report overseas financial account balances for the 2024 calendar year.

Failure to report, underreporting, or false reporting may result in penalties.
A penalty of at least 10% of the unreported amount may be imposed, and if intentional omission is confirmed, criminal penalties may apply including up to two years of imprisonment.

Today, many countries including Korea and the United States—participate in automatic exchange of financial information. In other words, the era of “not knowing” is effectively over.

If you are preparing for permanent return to Korea or considering dual nationality, reviewing and preparing in advance is the safest approach.

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For detailed tax consultations related to overseas financial account reporting, please contact a tax accounting firm or the National Tax Service Call Center.
📞 National Tax Service Call Center: Dial 126 → 2 → 6 → 2