(1) The terms used in this Act are defined as follows: <Amended on Apr. 30, 2011; Mar. 21, 2012>
1. The term "domestic currency" means won, which is the legal currency of the Republic of Korea;
2. The term "foreign currency" means any currency other than domestic currency;
3. The term "means of payment" means those falling under any of the following items:(a) Government notes, bank notes, coins, checks, postal money orders, or letters of credit;(b) Bills of exchange, promissory notes and other payment orders as prescribed by Presidential Decree;(c) Vouchers, plastic cards or other articles in which asset value is embedded by electronic or magnetic means and which may be used for payment among many unspecified persons in lieu of a currency, which are prescribed by Presidential Decree;
4. The term "means of international payment" means a foreign currency, means of payment denominated in foreign currency, or other means of payment which can be used in a foreign country regardless of currency denomination;
5. The term "means of domestic payment" means any means of payment other than means of international payment;
6. The term "precious metals" means gold, gold-alloyed ingots, gold coins not in circulation, or other products and processed goods which are mainly made of gold;
7. The term "securities" means securities under Article 4 of the Financial Investment Services and Capital Markets Act and those prescribed by Presidential Decree, which do not fall under subparagraph 3;
8. The term "securities in foreign currency" means securities denominated in a foreign currency, or those payable in a foreign country;
9. The term "derivatives" means derivatives under Article 5 of the Financial Investment Services and Capital Markets Act and others prescribed by Presidential Decree;
10. The term "derivatives in foreign currency" means derivatives denominated in foreign currency or those which are able to be paid for in a foreign country;
11. The term "claims" means rights to request for the payment of money, etc. accruing from all kinds of deposits, trusts, guarantees, borrowing and lending, etc. and which do not fall under subparagraphs 1 through 10;
12. The term "claims in foreign currency" means claims denominated in a foreign currency, or those payable in a foreign country;
13. The term "foreign exchange" means the means of international payment, securities, derivatives and claims in foreign currency;
14. The term "resident" means an individual who has a domicile or residence in the Republic of Korea, and a legal entity whose main office is located in the Republic of Korea;
15. The term "non-resident" means an individual and a legal entity other than residents: Provided, That branch offices, local offices or other offices of non-residents located in the Republic of Korea, shall be deemed residents regardless of whether such offices, etc. have legal authority to act as an agent thereof;
16. The term "foreign exchange affairs" means any of the following:(a) Issuance or dealing of foreign exchange;(b) Payment, collection and receipt between the Republic of Korea and a foreign country;(c) Deposits, borrowing and lending of money, or guarantee with residents which is denominated in or paid for in a foreign currency;(d) Deposits, borrowing and lending of money or guarantee with nonresidents;(e) Other affairs similar to those provided in items (a) through (d) and which are prescribed by Presidential Decree;
17. The term "financial company, etc." means an institution as referred to in Article 38 (excluding subparagraphs 9 and 10) of the Act on the Establishment of Financial Services Commission, and other persons who conduct financial business and affairs related to finance and who are prescribed by Presidential Decree;
18. The term "overseas direct investment" means any transactions, acts or payments by residents, which fall under any of the following items:(a) Transactions or acts performed to establish continuous economic relations with a legal entity incorporated under the Acts and subordinate statutes of a foreign country (including a legal entity in the process of its incorporation) by acquiring securities issued by such legal entity or lending money to such legal entity, and which are prescribed by Presidential Decree;(b) Disbursement of funds to establish, expand or operate business offices in a foreign country or to conduct overseas business activities, and which is prescribed by Presidential Decree;
19. The term "capital transactions" means any transactions or acts falling under any of the following items:(a) Transactions (limited to cases relevant to foreign exchange for a transaction between residents) related to the creation, alteration or extinction of claims due to contracts for deposits, trust, borrowing and lending of money, debt guarantees, or buying and selling of the means of international payment, claims, etc. (excluding transactions as referred to in item (c) );(b) Issuance of, subscription to securities, and acquisition of securities or rights thereto (excluding cases falling under item (c), and limited to cases relevant to foreign exchange for a transaction between residents);(c) Transactions of derivatives (limited to cases relevant to foreign exchange for a transaction of derivatives between residents);(d) Acquisition of real estate in a foreign country or any rights related thereto by residents, or acquisition of real estate in the Republic of Korea or any rights related thereto by non-residents;(e) Acts performed between a legal entity’s head office, branch offices, local offices or other offices located in the Republic of Korea (hereafter in this item referred to as the "offices") and offices located in a foreign country in connection with establishment, expansion, operation, etc., of such offices and giving and receiving of funds in relation therewith, with the exception of cases referred to in item (a) (excluding giving and receiving of funds relevant to expenses incurred in maintaining offices and ordinary transactions and which are prescribed by Presidential Decree);(f) Other transactions or acts similar to those referred to in items (a) through (e), and which are prescribed by Presidential Decree;
20. The term "non-deposit liabilities in foreign currency, etc." means a financial company, etc.'s liabilities denominated in a foreign currency (excluding deposits in foreign currency) and others that are similar thereto and prescribed by Presidential Decree.
(2) Where the distinction between a resident and a non-resident referred to in paragraph (1) 14 and 15 is unclear, such distinction shall be as prescribed by Presidential Decree.[This Article Wholly Amended on Jan. 30, 2009]