Government to Block Arbitrary Foreign Exchange Controls... Amendment to Foreign Exchange Act Proposed

Kim Mia Proposes Amendment to the Foreign Exchange Transactions Act

Legislation is being promoted to prevent restrictions on corporate activities due to government foreign exchange policies and to guarantee the freedom of foreign exchange transactions by law. The aim is to clarify the freedom of foreign exchange transactions and thereby enhance market confidence.

According to the National Assembly Bill Information System on January 13, Kim Mia, a member of the People Power Party and a member of the National Assembly Health and Welfare Committee, has sponsored a partial amendment to the Foreign Exchange Transactions Act. The amendment clearly defines the freedom of foreign exchange transactions for companies and citizens as a legal right and, in principle, restricts arbitrary foreign exchange controls and disadvantageous dispositions by the government.

Kim Mia, a member of the People Power Party, is delivering an encouragement speech at the '2025 Women Leaders Forum' hosted by The Asia Business Daily at Lotte Hotel in Jung-gu, Seoul on November 6, 2026. Photo by Kim Hyunmin

The current Foreign Exchange Transactions Act guarantees the freedom of foreign exchange and external transactions, but it also allows the government to restrict or manage foreign exchange transactions within a certain scope for the purpose of stabilizing the foreign exchange market. Based on this, the government has taken administrative measures regarding overseas investment or foreign exchange transactions by companies when deemed necessary for foreign exchange policy.

The core of the amendment is to specify the freedom of foreign exchange transactions as a right of the people. The bill introduces a new provision stating, "Residents have the right to freely conduct foreign exchange transactions, including holding, exchanging, depositing foreign currency, and making overseas investments." It also stipulates that the Minister of Economy and Finance must not restrict or compel foreign exchange transactions without a legitimate reason.

Additionally, the amendment includes a new provision prohibiting the government from taking disadvantageous actions or dispositions against companies for overseas investment or foreign exchange transactions. It fundamentally bans the imposition of administrative disadvantages solely for engaging in transactions subject to the Foreign Exchange Transactions Act.

Kim Mia's office stated, "Recently, there have been cases where the freedom of corporate management and economic activities has been restricted due to foreign exchange policies," and added, "Such measures undermine trust in the foreign exchange market and may actually pose a risk of rapid capital outflows." The amendment is stipulated in the supplementary provisions to take effect from the date of promulgation.

This content was produced with the assistance of AI translation services.