Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.
Tax guidelines and regulations for large money transfers into South Korea
You and your recipient may need to report large transfers.
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.
Send money internationally with OFX
OFX has no maximum limit transfers, with competitive exchange rates for 45+ currencies.
- Support for 55+ major and exotic currencies
- Competitive rates and no transfer fees
- Multiple transfer options include forward contracts and limit orders
Compare providers for your next large transfer into South Korea
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.
Which forms you file will depend on your situation, and a tax professional can help you sort out which one you need and when you need to file it.
How much money can I send to South Korea?
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.
You’ll have to find a provider without maximums like XE if you want to avoid running into additional caps on the amount you can send.
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
More guides on Finder
How to convert a 401(k) to a Roth IRA
Convert your 401(k) to a Roth IRA to make tax-free withdrawals at retirement. Learn more.
What is a Roth IRA?
A Roth IRA is a retirement savings account with special tax benefits. Learn more.
Tax guidelines and regulations for large money transfers to Hong Kong
Sending a large money transfer to Hong Kong? Learn about laws and required documentation before you transfer.
Your options if you can’t pay estimated taxes today
Quarterly estimated tax payments are due to the IRS by September 15th. Here’s what to do if you’re short on cash.
How do we pick the top money transfer services?
Our top picks are our selection of the best money transfer services, based on our extensive research and market experience. Here’s how we choose them.
How to file a tax extension in 2021
Know your options and get step-by-step guidance on filing an extension this year.
How to calculate your required minimum distribution
Calculate the required minimum distribution from your retirement accounts to avoid a tax penalty.
Alternatives to tax refund advances
Don’t want to pay to have your taxes prepared? Miss the deadline? Consider one of these options instead.
Review: TransferMate for your international business transfer
TransferMate can help your business send money across the globe. Read our review to find out about exchange rates, fees and safety.
Offers one simple plan that covers most tax situations
Ask an Expert