Report Obligation on the Overseas Subsidiaries and

1. Overview

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2. Objects and Reporting Details

(1) Objects of Reporting

Domestic corporations and residents who made the overseas direct investment as per the Article 3-1-18 of “Foreign Exchange Transactions Act” in Korea or who acquired the real estate in a foreign country or any rights related thereto among the capital transactions listed in the Article 3-1-19 of the same Act.

(2) Reporting Details

①  detailed statement of the overseas direct investment

②  the financial conditions of the invested foreign corporation for the overseas direct investment

③  the transaction of loss on the domestic corporation of the overseas direct investment 

④  the transaction of loss of the invested foreign corporation for the overseas direct investment

⑤  the current status of overseas branch office

⑥  detailed statement for the overseas real estate

(3) Deadline of Reporting

Ÿ  Corporation; within 3 months from the end date of the month in which the end date of each business year falls

Ÿ  Individual; May 31 of the following year of the relevant taxable period

3. Fines for Reporting Negligence and the Timing of Application

(1) Overseas Direct Investment:

①     Fines for Reporting Negligence :  the amount not exceeding one million won is to be fined

②     Timing of Application :  for corporation, the period 2010 and after and for individual, the period 2014 and after is to be applied

(2) Overseas Real Estate:

①     Fines for Reporting Negligence :  the amount up to 1% of the acquisition amount (not exceeding five million won) is to be fined

②     Timing of Application :  for both corporation and individual, the period 2014 and after is to applied

※ provided that it is not reported for 2014, the amount up to one million won is to be fined