Monday, August 4, 2014

Exodus Of Money: Rich Koreans Withdrawing Huge Amounts of Won from Banks

Depositors clamor to withdraw their savings from a bank in Berlin on July 13, 1931. (Photo by Georg Pahl via Wikimedia Commons)
Depositors clamor to withdraw their savings from a bank in Berlin on July 13, 1931. (Photo by Georg Pahl via Wikimedia Commons)
4 AUGUST 2014
A lot of wealthy people in Korea have been withdrawing billions won from banks recently, a so-called “exodus of money.” This money exodus started one or two years ago, and has been proven by the statistics of the Bank of Korea.
According to the statistics of Bank of Korea, individual or corporate accounts with amounts greater than 500 million won (US$484,470) in commercial banks have constantly increased, to a total of 79,940 accounts in 2011. The amount, however, started to decrease from 2012, and there were only 72,400 such accounts last year. The total balance of those accounts increased by 80 trillion won (US$77.5 billion) within one year of 2010, but decreased by 13.7 trillion won (US$13.2 billion) last year.
Wealthy people have three major reasons for this withdrawal trend. The first one is that the Foreign Account Tax Compliance Act (FATCA), started by the U.S. government in July, is effective in Korea as well. FATCA requires financial companies to report the names and account balances of overseas financial accounts, if U.S. citizens or permanent residents have them, to the U.S. tax authority. As the automatic exchange of tax information between Korea and the U.S. was concluded, Korean financial institutions should report the list of U.S. clients with more than US$50,000 (51.6 million won) in assets to the US government. If unreported overseas assets are revealed, the U.S. government imposes multi-million dollar fines. Accordingly, rich US citizens and permanent residents who live in Korea have moved their assets to gold or commercial real estate.
- See more at: http://www.businesskorea.co.kr/article/5726/exodus-money-rich-koreans-withdrawing-huge-amounts-won-banks#sthash.28bPsf45.dpuf
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Something we do not have to worry about. Since we have no money living in Korea or in the states.

Tao Dao Man. 

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