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  • Grievance regarding FSS investigation for violation of Foreign Exchange Transactions Act
    • 담당부서 : 외투기업고충처리실(고상원)
    • 조회수 : 1,278
  • Organization : Financial Supervisory Service (FSS)
  • Regulation : Foreign Exchange Transactions Act
(Background) The filing company took out a loan from the headquarters in the US to purchase a factory site in an industrial complex and completed the groundwork of the factory, but did not report the financial transaction (loan) to the Financial Supervisory Service (FSS). The filing company belatedly reported the loan of foreign currency in January 2015 to the FSS, but the company was investigated by the Financial Supervisory Commission (FSC) for the violation of the Foreign Exchange Transactions Act.

(Major issues) Even after three months have passed since the filing company voluntarily filed the report on the loan, the FSS’s investigation has not been completed. Because of the unfinished investigation, the filing company was banned from foreign exchange transactions so there is no way for the company to finance additional investment funds.

The filing company executed about KRW 20 billion among the total expected investment amount (KRW 5.5 billion) but the delay in the payment for the construction has caused a problem in the factory construction.
Resoultion and Results
The Office of Foreign Investment Ombudsman (OFIO) received the grievance and contacted the FSS to inform of the filing company’s investment status and the difficulties regarding the factory construction and requested rapid completion of the investigation.

Soon the investigation was completed and the finalized penalty was imposed on the filing company. If the company does not object to the agency’s decision, the company may conduct financial transaction after certain period.

The filing company did not raise objection to the FSS so the company was able to invest in its construction project without a problem. OFIO will continue its support for the filing company in the course of the project if any grievances occur.