The National Tax Office will be automatically informed of all U.S. bank accounts held by Korean citizens containing more than US$10,000.
The Ministry of Strategy and Finance and the U.S. Department of Commerce have signed a treaty agreeing to exchange tax-related information starting in 2015.
The U.S. Internal Revenue Service will inform the NTS of accounts in American banks by Korean nationals and how much they contain, and Seoul will do the same for bank accounts here opened by U.S. citizens.
The NTS will be notified of all U.S. bank accounts held by Koreans that accrue at least $10 in annual interest, the minimum interest U.S. banks pay to accounts containing at least $10,000.
Accounts with insurance companies, brokerages and investment trusts also fall under the agreement.
Meanwhile, Seoul will inform Washington of U.S. citizens' accounts in Korea containing at least $50,000.