|The mother company E receives parts from its Korean subsidiary B containing a chip purchases locally from company Q. A company must be registered in Korea to directly buy chips from company Q. However, Company E is not registered to do so.
Subsidiary B is experiencing financial difficulties, but needs to buy chips from Company Q. USA Company E needs to make account payable to the subsidiary, but Company E, instead of paying the loan, wants to directly wire payment for the chips to company Q.
However, the amount that Company E owed subsidiary B exceeds the amount required by company Q. Company E had planned to wire payment to its subsidiary (including accounts payable to Company B’s with a third party loan) however, KEB will not allow payment from the US mother company, so they can not receive payment before gaining approval from the Bank of Korea.
So Company E requested assistance from OFIO.