Exchange controls

摘要

The Ministry of Economy and Finance (MOEF) and the Bank of Korea (BOK, the central bank) run South Korea's foreign-exchange (forex) system. Individual banks set rates based on market conditions. Generally, the same rates prevail at all banks. The MOEF is empowered to direct exchange-rate policy, stop forex transactions in an emergency, impose or lift restrictions on forex deals and authorise forex banks. It can invoke safeguard measures ranging from restrictions on capital movements to an outright ban on all or some forex transactions. The MOEF can even order means of payment to be deposited with the government. Safeguard measures must not be in force for more than six months, unless extended, and should not apply to foreign direct investment in the country.