South Korea purpose of payment guide


This article provides information on sending wires to South Korea and includes a chart of purpose codes and their descriptions. Purpose codes are used to indicate the nature of the transaction being conducted. By selecting the appropriate purpose code, you ensure that your wire transfer complies with regulatory requirements and facilitates the smooth processing of the transaction.

It's important to ensure that the purpose of payment code is accurate and appropriate for the transaction. Incorrect or inappropriate codes can result in delays or even rejection of the transfer.

Code

Description

Imports

10101

Advance payment against import before customs clearance

10103

Payment against import after customs clearance

10201

Advance payment of transit trade import without customs clearance process

10202

Payment of transit trade/intermediary trade import without customs clearance process

10203

Advance payment against trade for the goods shipped outside of South Korea

10204

Payment against import for the goods shipped outside of South Korea

10206

Payment against trade for the goods shipped to South Korea

Other trades

10299

Other trade related payment

20103

Returned payment of payment against export after customs clearance

20299

Other trade related returned payment

Travel

30201

Business trip

Transport

31101

Air cargo fare

31102

Maritime cargo fare

31201

Air passenger fare

31303

Marine operation expenses

31999

Other transport except for marine and air

Insurance

32101

Insurance premium on life insurance contract

32199

Insurance premium on other insurance contract

Foreign direct investments

33101

Foreign direct investment related dividend payment

33102

Foreign direct investment related excessed dividend payment or dividend payment against liquidating FDI

33104

Interest payment against loan from parent direct invested company

33105

Current net income generated by branch in South Korea

33210

Interest payment against KRW mid-long term bond purchased by foreign investor

33301

Interest on the loan drawdown by government or public organization

33302

Interest payment against the long term (a year +) loan from the overseas direct invested company to South Korean companies

33303

Interest payment against long term loan from South Korean company (FD invested corporate included) to offshore affiliates vice versa

33306

Interest payment against short term loan from South Korean company (FD invested corporate included) to offshore affiliates vice versa

Other business services

35104

Leasing service (machine or equipment, etc.)

35201

Financial service fee (bank receipt)

35202

Financial service fee (non-bank receipt)

35302

Brokerage commission, agency fee, rebate, etc.

35701

Patent fee

35702

Fee for using trademark rights

35703

Fee for business rights, selling rights (franchise)

35704

Fee for using business process and design

35705

Royalty of intellectual property rights related to sound and image purchase/sale

35799

Royalty of other intellectual property

35801

Computer-related service

35802

Computer maintenance service

35803

Computer program purchase/sale price

35804

Fee for using Intellectual property related to computer software

35806

Telecommunication expense

35808

Book/newspaper fee

35901

Invitation cost

35902

Exhibition, seminar expense

35904

Purchase/sale of audio & video related right

35905

Education service

36001

Advertisement fee

36003

Market research, public opinion research service

36004

Legal service

36005

Accounting, auditing, and tax service

36006

Consulting service

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