Treasury & FX in South Korea
8 May 2019
- Domestic intercompany loans are complex and difficult to set up. Cross-border intercompany loans (inbound) appear to be getting easier under the CMF structure.
- FX risk management is straightforward, participants reported no issues with dividends and cash repatriation.
- There is debate as to whether it is possible to charge interest on intercompany accounts
- Cross-border payment processing under the KITA certificate (for volumes > US$50 million) works well though it is advisable to administer this locally for language reasons.
- Multilateral netting for intercompany payments is possible but requires heavy documentation – participants settled bilaterally.
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