Article 3 (Definitions)

The meanings of terms used in this Act shall be as follows. <Amended by Act No. 10614, Apr. 30, 2011; Act No. 11284, Mar. 21, 2012; Act No. 17215, Mar. 18, 2025> 1. "Domestic currency" means the Korean Won (￦), which is the legal tender of the Republic of Korea. 2. "Foreign currency" means any currency other than domestic currency. 3. "Means of payment" means any of the following: a. Government notes, banknotes, coins, checks, postal money orders, letters of credit b. Drafts, promissory notes, and other payment orders as prescribed by Presidential Decree c. Tokens, plastic cards, or other objects into which monetary value has been entered by electronic or magnetic means, which can be used between an unspecified number of persons in lieu of currency for payment, as prescribed by Presidential Decree 4. "Means of external payment" means foreign currency, means of payment denominated in foreign currency, and means of payment that can be used abroad regardless of the currency of denomination. 5. "Means of domestic payment" means any means of payment other than means of external payment. 6. "Precious metal" means gold, gold alloy bullion, non-circulating gold coins, and other products and processed goods whose main material is gold. 7. "Securities" means those not falling under subparagraph 3, and means securities as defined in Article 4 of the 「Capital Markets and Financial Investment Business Act」 and others as prescribed by Presidential Decree. 8. "Foreign currency securities" means securities denominated in foreign currency or securities payable abroad. 9. "Derivatives" means derivatives as defined in Article 5 of the 「Capital Markets and Financial Investment Business Act」 and others as prescribed by Presidential Decree. 10. "Foreign currency derivatives" means derivatives denominated in foreign currency or derivatives payable abroad. 11. "Bond" means a right to claim payment of money, etc. arising from all types of deposits, trusts, guarantees, loans, etc., and which does not fall under subparagraphs 1 through 10. 12. "Foreign currency bond" means a bond denominated in foreign currency or a bond payable abroad. 13. "Foreign exchange" means means of external payment, foreign currency securities, foreign currency derivatives, and foreign currency bonds. 14. "Resident" means an individual who has a domicile or residence in the Republic of Korea and a juridical person whose principal office is located in the Republic of Korea. 15. "Non-resident" means an individual or juridical person other than a resident. However, a branch, liaison office, or other office in the Republic of Korea of a non-resident shall be deemed a resident regardless of whether it has legal agency authority. 16. "Foreign exchange business" means any of the following: a. Issuance or trading of foreign exchange b. Payment, collection, and receipt between the Republic of Korea and foreign countries c. Deposits, loans of money, or guarantees with residents, denominated or payable in foreign currency d. Deposits, loans of money, or guarantees with non-residents e. Other businesses similar to items a through d, as prescribed by Presidential Decree 16-2. "Foreign exchange brokerage business" means any of the following: a. Brokerage of trading, exchange, or lending of foreign currency b. Brokerage of derivative transactions based on foreign currency c. Other businesses related to items a and b 17. "Financial companies, etc." means institutions as defined in Article 38 (excluding subparagraphs 9 and 10) of the 「Act on the Establishment and Operation of the Financial Services Commission」, and other persons engaged in financial business and financial-related business as prescribed by Presidential Decree. 18. "Overseas direct investment" means transactions, acts, or payments made by a resident falling under any of the following: a. Transactions or acts performed to establish a continuous economic relationship with a juridical person established under foreign law (including a juridical person in the process of establishment) by acquiring its securities or lending money to it, as prescribed by Presidential Decree b. Acts of making payments for the establishment, expansion, or operation of a business office abroad or for overseas business activities, as prescribed by Presidential Decree 19. "Capital transaction" means any transaction or act falling under any of the following: a. Transactions regarding the creation, modification, or extinction of claims arising from deposit agreements, trust agreements, loan agreements, debt guarantee agreements, or sales agreements for means of external payment, bonds, etc. (excluding cases falling under item c) (transactions between residents shall be limited to those related to foreign exchange) b. Issuance or public offering of securities, or acquisition of securities or rights related thereto (excluding cases falling under item c, and transactions between residents shall be limited to those related to foreign exchange) c. Derivative transactions (derivative transactions between residents shall be limited to those related to foreign exchange) d. Acquisition of real estate or rights related thereto located abroad by a resident, or acquisition of real estate or rights related thereto located in the Republic of Korea by a non-resident e. Except for cases falling under item a, acts related to the establishment, expansion, or operation of offices (hereinafter referred to as "offices" in this item), etc. between the head office, branches, liaison offices, or other offices (hereinafter referred to as "offices" in this item) of a juridical person located in the Republic of Korea and its offices located abroad, and the transfer of funds arising therefrom (excluding transfers of funds related to expenses for maintaining offices or ordinary transactions as prescribed by Presidential Decree) f. Other transactions or acts similar in form to items a through e, as prescribed by Presidential Decree 20. "Non-deposit foreign currency liabilities, etc." means foreign currency-denominated liabilities (excluding foreign currency deposits) of financial companies, etc. and similar items as prescribed by Presidential Decree.