US, Korea agree to exchange financial account information
During a Cabinet meeting Tuesday, chaired by deputy Prime Minister Choi Kyung-hwan,in his role as acting prime minister, the government passed a revised bill that requires the automatic exchange of financial account information for taxpayers from both countries every year, reports Arirang.
The agreement will also ensure confidentiality and the proper use of information, while promoting tax transparency.
It stipulates that Korean financial institutions are not subject to withholding tax under US federal tax law.
The new measure is expected to come into effect in Korea in September.