Ukraine Emergency Response Task Force… Remittance from Russia to Korea is not allowed, and support for emergency living expenses loans, etc.
Prepare a list of U.S. general permits and distribute them to companies… Deputy Minister of Strategy and Finance, Lee Won Lee, is presiding over the 19th Ukrainian emergency response task force meeting held at the government complex in Jongno-gu, Seoul on the 18th. 2022.3.18/News 1
Reporter Hyuk-Jun Kwon = As Russias invasion of Ukraine continues, the government has decided to expand the limit of remittance to Russia for the expedited overseas remittance system for diplomatic missions abroad to $8,000.
The government made this announcement at the 19th emergency response task force meeting held in Ukraine on the morning of the 18th at the government complex in Seoul, presided over by the 1st Vice Minister of Strategy and Finance Lee Won Lee.
Currently, in the case of remittance from Korea to Russia, it is possible to remit money through non-sanctioned banks such as local Russian subsidiaries of domestic banks.
However, the general public is having difficulty finding a remittance route that does not individually go through the sanctioned bank, so the plan is to actively utilize the overseas remittance system at overseas diplomatic missions.
Accordingly, the government has decided to expand the limit of remittance to Russia from the current $3,000 to $8,000, and to provide detailed information to Koreans and international students through the local embassy to minimize confusion on the site.
In addition, in the process of remittance through non-sanctioned banks, the guidance and guidance of financial authorities will be strengthened to prevent cases such as refusal of the transaction by domestic financial institutions.
Unlike the Korea-Russia remittance, the Russian-Korean remittance cannot be remitted through a bank due to the measures taken by the Russian side. As a result, expatriate employees of Russian companies are unable to remit their salaries received locally to their families in Korea.
The government has decided to promote financial support for the domestic family of expatriates through emergency living expenses loans from domestic banks. To this end, joint guidelines for banks related to financial transactions of overseas residents are prepared.
In addition, KOTRA plans to inform local companies about how to pay expatriates wages to a domestic account instead of a local account in Russia.
At the meeting, support for the approval of import/export items in relation to trade transactions of import/export companies was also discussed.
In the fields of energy, agricultural and fishery products, and medical care, although the U.S. government allowed exceptions including financial transactions with sanctioned banks through general permission, frontline financial institutions complained of difficulties in determining whether general permission for import and export items is applicable. there is.
Accordingly, the government decided to jointly prepare a list of items that fall under the U.S. general license and distribute it to Korean companies and financial institutions.
In addition, there are situations in which some global remittance intermediary banks delay or avoid settlements and remittances related to Russia even when there is no connection with the sanctioned bank or the sanctioned item. To this end, a temporary measure will be prepared and implemented to allow a domestic banks Russian branch to quickly settle global remittance trade using accounts opened in Korea.
The government also provided financial support to companies directly or indirectly affected by the Ukraine crisis, such as the 2 trillion won emergency financial support program announced earlier, 200 billion won of SME management stabilization funds, 50 billion won of trade promotion funds and the closing of branches with special guarantees. We plan to proceed without delay.
In addition, a 0% quota tariff on neon, krypton, and xenon, a rare gas for semiconductor processing, which is highly dependent on imports from Russia and Ukraine, will be applied from next month.
In addition, among the grains imported from Ukraine that are difficult to bring into Korea, alternative bids are made for corn for feed, and for edible corn, the government will cooperate with relevant ministries, institutions, and industries to take measures to respond to export restrictions in major countries.
On the other hand, the government said that the direct impact on the domestic real and financial sectors is not expected to be large with respect to the possibility of a default of Russian government bonds, but it is necessary to be careful about the indirect impact.
Russias default itself has little to do with the real economy, but when combined with the continued high-strength sanctions from the West, it will have a negative impact on the global economy, such as the economy of major trading partners, international commodity prices and supply and demand, inflation and liquidity instability.
As related uncertainties such as the unstable situation in Ukraine and concerns about default in Russia continue, Vice Minister Lee Won-sik said that he would continue to monitor trends and domestic impacts through a daily inspection system. He said that he would check the cases of difficulties and implement specific measures in a timely manner.