Table of Contents
- What Is Currency Exchange Business?
- Who Needs to Register?
- Key Requirements
- Required Documents
- Registration Procedure
- AML Obligations
- Timeline and Fees
- Post-Registration Obligations
- FAQ
1. What Is Currency Exchange Business?
Currency exchange business (환전업) is a financial business that must be registered with the Ministry of Economy and Finance under Article 8 of the Foreign Exchange Transactions Act. It covers buying and selling foreign currency and handling traveler's checks.
2. Who Needs to Register?
Any individual or business — including foreign-invested companies — that intends to buy or sell foreign currency as a commercial activity in Korea must register. Common applicants include hotels, tourist districts, airports, and money-transfer service providers.
3. Key Requirements
- No minimum capital requirement for basic registration
- Must not have disqualifying criminal convictions related to financial fraud
- Must have an established office location
- AML compliance system in place
4. Required Documents
- Application form
- Business plan including estimated transaction volume
- Corporate registry extract or ID for sole proprietors
- Business registration certificate
- Office lease agreement
- AML internal control policy document
5. Registration Procedure
- Prepare AML compliance documentation
- Submit application to the Ministry of Economy and Finance (Foreign Exchange Division)
- Review and supplementation period
- Receipt of registration certificate (approx. 20–30 business days)
6. AML Obligations
Currency exchange operators are subject to Anti-Money Laundering (AML) obligations under the Act on Reporting and Using Specified Financial Transaction Information. Key requirements include:
- Customer identification (KYC) for transactions over USD 1,000 equivalent
- Suspicious transaction reporting (STR)
- Record-keeping for 5 years
- Designation of a compliance officer
7. Timeline and Fees
Processing typically takes 20–30 business days. Government fees are minimal; main costs are for document preparation and administrative scrivener services.
8. Post-Registration Obligations
- File regular transaction reports with the Korea Financial Intelligence Unit (KoFIU)
- Report business changes within 14 days
- Renew registration as required
FAQ
Q. Can a foreign national register without a Korean entity?
A. A Korean business registration is required. Foreign nationals should establish a legal entity first.
Q. Is a hotel automatically allowed to exchange currency for guests?
A. No. Even hotels must obtain a separate currency exchange registration to offer this service commercially.
Q. What are the penalties for operating without registration?
A. Unregistered currency exchange is a criminal offense under the Foreign Exchange Transactions Act, with potential fines and imprisonment.
Register Your Currency Exchange Business in Korea
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