SEOUL, June 27 (Xinhua) -- South Korea will ease penalties on the violations of the foreign exchange (FX) transactions act to reflect the changed environment such as the growth in its economic scale, the finance ministry said Tuesday.
The revised enforcement decree of the foreign exchange transactions act was approved through the cabinet meeting earlier in the day with an aim of alleviating regulations on foreign exchange trading, according to the Ministry of Economy and Finance.
Under the revised decree, a fine will be imposed on those who violate an obligation to report on the transactions of foreign currencies worth more than 50,000 U.S. dollars, up from the current 20,000 dollars.
The ceiling, above which the advance report violations for foreign currency trading can be criminally punishable, will be raised from the current 1 billion won (769,000 U.S. dollars) to 2 billion won (1.5 million dollars).
The revision will allow securities finance companies to participate in the FX swap market in a bid to let them secure foreign currency liquidity.
The revised enforcement decree will take effect on July 4. ■
