Article 16 (Notification of Method of Payment or Receipt)

When settling claims or debts arising from transactions or acts between residents, between a resident and a non-resident, or between non-residents, if a resident falls under any of the following subparagraphs (excluding cases where the person who made a notification under Article 18 makes payment or receipt by the notified method), the method of payment or receipt shall be reported in advance to the Minister of Strategy and Finance as prescribed by Presidential Decree. However, in the case of transactions prescribed by Presidential Decree for the stabilization of foreign exchange receipts and payments and the facilitation of external transactions, subsequent reporting or notification may be made, or no notification may be required. 1. When settling by extinguishing or offsetting claims or debts through methods such as set-off. 2. When settling beyond the period determined by the Minister of Strategy and Finance. 3. When a resident makes payment or receipt with a person who is not a party to the relevant transaction, or when a resident who is not a party to the relevant transaction makes payment or receipt with a non-resident who is a party to the transaction. 4. When making payment or receipt without going through a foreign exchange business institution, etc.