Off-shore account notification

Offshore account notification system hasintroduced in 2011 to prevent offshore tax evasion. Where off-shore bankaccounts of an individual or corporation have a total balance exceeding KRW1billion on any day among the last day of each months it is subject tosubmission of off-shore account details to the National Tax Service. Thecomputation of total balance is aggregating all amounts in off-shore accountsafter converting them at daily exchange rates. All off-shore accounts includingdeposits, installment savings, securities and insurance products are subject tonotification. Off-shore accounts owned by overseas local corporations but wherea local corporation is the beneficial owner of off-shore accounts it is subjectto notification.