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Korea FX Specialist Type II (외환전문역 2종, South Korea)

Practice Questions100 questions

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Key Facts: FX Specialist 1 Exam

80 questions

Official examination question count (Subject 1: 35, Subject 2: 25, Subject 3: 20)

Korea Institute of Finance (kbi.or.kr)

120 minutes

Official examination duration

Korea Institute of Finance (kbi.or.kr)

40 / 60

Passing standard: 40% individual subject floor (과락) and 60% overall average

KBI Qualification Regulations

KRW 55,000

Official examination registration fee

Korea Institute of Finance (kbi.or.kr)

USD 100,000

Annual non-documented overseas remittance ceiling per resident

Foreign Exchange Transactions Regulations (외국환거래규정)

외환전문역 1종 (Korea FX Specialist Type I) is South Korea's national-accredited banking credential for retail FX operations, administered by KBI. The official exam comprises 80 four-option MCQs across three subjects (FX Management, FX Counter Operations, FX Risk Management) over 120 minutes, requiring a 40% subject floor and a 60% overall average (fee: KRW 55,000). OpenExamPrep provides an independent 100-question English MCQ practice bank.

Sample FX Specialist 1 Practice Questions

Try these sample questions to review concepts for the FX Specialist 1 exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under Article 1 of the Foreign Exchange Transactions Act (외국환거래법), what is the statutory purpose of the Act?

A.To completely prohibit all private foreign currency transactions and mandate central bank foreign exchange monopoly

B.To eliminate domestic commercial banks from handling cross-border telegraphic transfers

C.To enforce rigid fixed exchange rate pegging against the United States dollar across all commercial banks

D.To facilitate foreign transactions, maintain balance of payments equilibrium, and stabilize currency value through market liberalization

Explanation: Article 1 of the Foreign Exchange Transactions Act (외국환거래법 제1조) states that the purpose of the Act is to facilitate foreign transactions, maintain equilibrium in the balance of payments (국제수지의 균형), and stabilize the value of the domestic currency (통화가치의 안정) by liberalizing foreign exchange transactions and promoting market principles, thereby contributing to the sound development of the national economy.

2Which of the following situations is NOT covered by the jurisdictional scope of the Foreign Exchange Transactions Act (외국환거래법의 적용범위)?

A.Acts performed in a foreign country by a non-resident involving assets located purely outside the Republic of Korea with no connection to Korea

B.Acts performed in a foreign country by a resident, their agent, or employee regarding their business or property

C.Transactions between non-residents concerning domestic payment means or claims denominated in Korean Won

D.Transactions, payments, or receipts conducted within the Republic of Korea between residents and non-residents

Explanation: Under Article 2 of the Foreign Exchange Transactions Act, the Act applies to acts performed in Korea by anyone (residents and non-residents), acts performed abroad by residents or their domestic entities, and acts performed abroad concerning domestic payment means, claims denominated in Korean won, or domestic real estate. Pure transactions between non-residents abroad involving exclusively foreign assets and foreign currency without any connection to Korea fall entirely outside Korean legal jurisdiction.

3Under the Foreign Exchange Transactions Act, how is 'foreign exchange' (외국환) fundamentally defined?

A.Means of payment (지급수단), foreign claims (외화채권), and foreign currency-denominated securities (외화증권)

B.Only electronic wire transfers conducted through SWIFT network messaging

C.Only physical banknotes and coins issued by foreign central banks

D.Precious metals including physical gold bullions exclusively held in commercial bank vaults

Explanation: Under Article 3 of the Foreign Exchange Transactions Act, 'Foreign Exchange' (외국환) encompasses means of payment (지급수단: bills, checks, postal money orders, electronic payment means, cash), foreign claims (외화채권: deposits, loans, and monetary rights denominated in foreign currency), and foreign currency securities (외화증권: foreign equity, debt, and derivative securities).

4How are 'Domestic Means of Payment' (내국지급수단) distinguished from 'Foreign Means of Payment' (대외지급수단) under Korean foreign exchange law?

A.Domestic means of payment require central bank endorsement, whereas foreign means of payment do not require any regulatory supervision

B.Domestic means of payment refer only to coins; foreign means of payment refer only to paper currency

C.Domestic means of payment cannot be converted into foreign currency under any circumstances

D.Domestic means of payment are denominated in Korean won and used in Korea; foreign means of payment are foreign currencies or payment instruments usable abroad regardless of currency denomination

Explanation: Under Article 3, Paragraph 1, Item 4 of the Foreign Exchange Transactions Act, 'Domestic Means of Payment' (내국지급수단) refers to Korean won currency and payment instruments denominated in Korean won that can be used domestically. 'Foreign Means of Payment' (대외지급수단) refers to foreign currencies and other payment instruments that can be used in foreign countries as a means of international payment, regardless of the currency in which they are denominated.

5What is the primary statutory purpose and operating mechanism of the Foreign Exchange Equalization Fund (외국환평형기금) established under the Foreign Exchange Transactions Act?

A.To directly purchase distressed domestic corporate stocks during commercial bankruptcy proceedings

B.To fund the statutory budget deficits of municipal local governments across South Korea

C.To stabilize the foreign exchange market by issuing Foreign Exchange Equalization Fund Bonds (외평채) to intervene against excessive exchange rate volatility

D.To subsidize overseas travel expenses for low-income domestic residents

Explanation: Under Article 13 of the Foreign Exchange Transactions Act, the Foreign Exchange Equalization Fund (외국환평형기금) is a special government fund established under the Ministry of Economy and Finance (operated by the Bank of Korea) to facilitate foreign exchange transactions and stabilize the foreign exchange market. It raises funds by issuing Foreign Exchange Equalization Fund Bonds (외평채) in domestic won or foreign currencies to smooth out disorderly market fluctuations and manage national foreign reserves.

6Which emergency measure may the Minister of Economy and Finance implement under Article 6 (Safeguard Measures, 세이프가드) of the Foreign Exchange Transactions Act during an acute financial crisis?

A.Unilateral cancellation of all foreign sovereign debt contracts without central bank notice

B.Temporary suspension of foreign exchange transactions, concentration of foreign means of payment, and variable deposit requirements (가변예치제도)

C.Prohibition of all food imports and mandatory barter exchange agreements

D.Mandatory permanent nationalization of all private corporate equity shares

Explanation: Article 6 of the Act authorizes the Minister of Economy and Finance to implement emergency safeguards (세이프가드 조치) when the economy faces critical disruptions such as war, severe financial crisis, or international balance of payments shocks. Permitted measures include temporary suspension of foreign exchange payments and transactions (지급 및 거래의 정지, max 6 months), mandatory deposit or surrender of foreign payment means to the Bank of Korea (보관·매각 집중의무), and the Variable Deposit Requirement (VDR / 가변예치제도), which requires a percentage of inbound capital to be deposited without interest.

7To operate as a registered Foreign Exchange Bank (외국환은행), an institution must register with which government entity under Article 8 of the Act?

A.The Korea Customs Service (관세청장)

B.The Korea Institute of Finance (한국금융연수원장)

C.The Minister of Economy and Finance (기획재정부장관)

D.The Ministry of Foreign Affairs (외교부장관)

Explanation: Under Article 8 of the Foreign Exchange Transactions Act, any financial institution wishing to engage in foreign exchange business must satisfy regulatory requirements regarding capital adequacy, financial soundness, specialized personnel, and computing infrastructure, and register formally with the Minister of Economy and Finance (기획재정부장관).

8Which of the following is NOT an obligation or confirmation duty imposed on registered Foreign Exchange Banks (외국환은행 등의 확인의무)?

A.Confirming the real name and identity of the customer conducting cross-border remittances

B.Guaranteeing that the customer achieves a positive investment return on all foreign currency securities purchased

C.Reporting foreign exchange transaction records to the Bank of Korea's Foreign Exchange Information Network

D.Verifying whether a customer's foreign exchange transaction requires prior authorization or reporting under the Act

Explanation: Under Article 10 of the Act and related regulations, foreign exchange banks bear strict confirmation duties (확인의무) to verify customer identity, confirm underlying transaction legality, check required regulatory declarations, and report data to the BOK FX network. Banks are financial intermediaries and never guarantee investment returns or protect customers against market investment losses.

9What is the regulatory status and scope of Specialized Foreign Exchange Business Institutions (기타 외국환업무취급기관), such as securities investment brokers and insurance companies?

A.They are strictly banned from holding any foreign currencies or transacting in foreign exchange

B.They can execute unrestricted banking operations including commercial deposit-taking from the general public

C.They may register with the Minister of Economy and Finance to conduct foreign exchange business directly related to their inherent statutory business activities

D.They operate completely outside the supervision of the Financial Services Commission and Bank of Korea

Explanation: Under Article 8 of the Act, non-bank financial institutions such as securities broker-dealers, insurance firms, merchant banks, and credit card companies may register as Specialized Foreign Exchange Business Institutions (기타 외국환업무취급기관). Their permitted foreign exchange business is limited to operations directly related to their inherent financial business (e.g., FX derivatives for securities settlement, insurance premium foreign payments).

10Which authority is responsible for receiving registration applications from entities seeking to operate a Currency Exchange Business (환전영업자) in South Korea?

A.The Bank of Korea (한국은행)

B.The Korea Financial Investment Association (금융투자협회)

C.The Ministry of Land, Infrastructure and Transport

D.The National Tax Service (국세청)

Explanation: Under Article 8, Paragraph 3 of the Foreign Exchange Transactions Act and its Enforcement Decree, entities intending to run a currency exchange business (환전영업자 / Money Changer) must possess the requisite facilities, computer equipment, and personnel, and register formally with the Bank of Korea (한국은행).

About the FX Specialist 1 Exam

Korea FX Specialist Type I (외환전문역 1종) is South Korea's benchmark professional qualification for retail banking foreign exchange operations, administered by the Korea Institute of Finance (한국금융연수원 / KBI) and officially accredited as a 국가공인 민간자격 by the Financial Services Commission. The examination validates practical legal and operational mastery for bank personnel handling foreign currency cash, telegraphic transfers, traveler's checks, resident and non-resident accounts, overseas remittances, capital transactions, and foreign exchange risk management. OpenExamPrep provides an independent 100-question English MCQ study adaptation with exact Korean legal terminology (외국환거래법, 외국환평형기금, 전신환매매율, 통화선도, 선물환) designed to build conceptual fluency and regulatory precision.

Exam sponsor: Korea Institute of Finance (한국금융연수원 / KBI). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

Three official subjects: Subject 1: Foreign Exchange Management Practice (외환관리실무, 35 items), Subject 2: Foreign Exchange Transactions Practice (외국환거래실무, 25 items), and Subject 3: FX Risk Management (환리스크관리, 20 items). Total 80 items in 120 minutes.

Time Limit

120 minutes

Passing Score

40+ per subject (과락 floor) and 60+ overall average out of 100

Exam / Certification Fees

KRW 55,000 (KBI, 2026-09-20)

Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Official sources

Korea Institute of Finance (한국금융연수원) Official Qualification Portal · Source checked 2026-09-20Official qualification administering body for the Korea FX Specialist Type I (외환전문역 1종) certification. Publishes examination schedules, syllabus, registration guidelines, and passing criteria.
Bank of Korea (한국은행) - Foreign Exchange Legal & Policy Information · Source checked 2026-09-20South Korea's central bank regulating foreign exchange transactions, capital transaction reporting, foreign exchange reserve management, and foreign exchange market stability.
Ministry of Economy and Finance (기획재정부) - Foreign Exchange Transactions Act · Source checked 2026-09-20Primary government ministry overseeing the statutory framework of the Foreign Exchange Transactions Act (외국환거래법) and foreign exchange market liberalization policies.
Korea Financial Intelligence Unit (금융정보분석원 / KoFIU) · Source checked 2026-09-20Supervisory authority overseeing Anti-Money Laundering (AML) compliance, Currency Transaction Reports (CTR), and Suspicious Transaction Reports (STR) in foreign exchange transactions.

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

44 of 100 questions

Foreign Exchange Management Practice (외환관리실무)

Foreign Exchange Transactions Act (외국환거래법) purpose, scope, and enforcement decree structure; foreign exchange bank registration criteria, confirmation duties, and reporting systems; resident (거주자) vs. non-resident (비거주자) jurisdictional criteria and determination rules; classification of current transactions (경상거래) vs. capital transactions (자본거래); overseas direct investment (해외직접투자 ODI), overseas real estate acquisition (해외부동산 취득), external borrowings and guarantees (금전대차 및 보증), and regulatory reporting to the Bank of Korea and Ministry of Economy and Finance.

31 of 100 questions

Foreign Exchange Transactions Practice (외국환거래실무)

Foreign currency cash buying and selling operations (외화현찰 매매); cash exchange rate margins and fee calculation; telegraphic transfer buying and selling rates (TTB, TTS) and basic exchange rate (매매기준율); traveler's checks (T/C) encashment; overseas travel expense remittances and limits (해외여행경비); overseas study and emigration remittances (유학생 및 이주자 송금); resident and non-resident foreign currency deposit products (외화예금); non-resident won currency accounts (대외원화계좌 / 비거주자원화계좌); and Currency Transaction Reporting (CTR) and Anti-Money Laundering procedures at the teller counter.

25 of 100 questions

FX Risk Management (환리스크관리)

Structure of the domestic and global foreign exchange markets (외환시장 구조), spot exchange rate vs. forward exchange rate mechanics; interest rate parity theory (Covered Interest Parity, CIP) and forward margin (포워드포인트 / 스왑포인트) pricing; foreign exchange exposure classification: transaction exposure (거래적 노출), translation/accounting exposure (환산적 노출), and economic exposure (경제적 노출); internal hedging techniques (matching, netting, leading/lagging) and external hedging instruments: forward FX contracts (선물환), currency futures (통화선물), currency options (통화옵션 delta/volatility), and money market hedges.

Preparing for the FX Specialist 1 Exam

What You Need to Know

Passing score: 40+ per subject (과락 floor) and 60+ overall average out of 100
Assessment: Three official subjects: Subject 1: Foreign Exchange Management Practice (외환관리실무, 35 items), Subject 2: Foreign Exchange Transactions Practice (외국환거래실무, 25 items), and Subject 3: FX Risk Management (환리스크관리, 20 items). Total 80 items in 120 minutes.
Time limit: 120 minutes
Exam / certification fees: KRW 55,000 (KBI, 2026-09-20) Official sources

Using Our Practice Resources

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FX Specialist 1: Suggested Study Strategy

1Master the legal distinctions between Current Transactions (경상거래) and Capital Transactions (자본거래): Current transactions are fundamentally liberalized, whereas capital transactions (overseas loans, guarantees, real estate acquisition, ODI) require specific reporting to designated foreign exchange banks, the Bank of Korea, or MOEF.

2Thoroughly memorize resident (거주자) vs. non-resident (비거주자) criteria: Know the exact residency duration thresholds (e.g., 6 months continuous stay for foreign individuals in Korea; 2 years foreign stay for Korean nationals abroad) and how foreign branches of Korean firms are classified.

3Calculate exchange rate spreads and conversion amounts: Practice converting amounts using Cash Buying/Selling Rates, Telegraphic Transfer Buying (TTB) and Selling (TTS) rates, and understand when the bank applies TTB (purchasing foreign currency from customer) vs. TTS (selling foreign currency to customer).

4Understand Covered Interest Parity (CIP) and swap point formulas: Master the calculation of forward exchange rates: Forward Rate = Spot Rate × (1 + r_quote) / (1 + r_base). When the domestic interest rate is higher than the foreign interest rate, the forward exchange rate trades at a forward premium (Forward > Spot).

5Distinguish between the three types of FX exposure: Transaction exposure (actual cash flow risk from settled/unsettled contracts), translation exposure (accounting balance sheet consolidation risk), and economic exposure (long-term corporate competitiveness and future operating cash flow sensitivity).

Frequently Asked Questions

What is the Korea FX Specialist Type I (외환전문역 1종) qualification?

It is South Korea's national-accredited qualification (국가공인 민간자격) administered by the Korea Institute of Finance (KBI). It certifies professional knowledge and operational skills in retail foreign exchange, including the Foreign Exchange Transactions Act, bank counter FX transactions, overseas remittances, and exchange risk management for banking professionals.

What is the difference between FX Specialist Type I and Type II?

FX Specialist Type I (외환전문역 1종) focuses on individual/retail foreign exchange, counter operations, overseas travel/study/emigration remittances, foreign currency deposits, and basic FX risk management. FX Specialist Type II (외환전문역 2종) focuses on corporate trade finance, including letters of credit (L/C), international trade rules (UCP 600, ISBP, URC 522, Incoterms), and import/export settlement.

What is the format, duration, and passing standard of the official exam?

The official exam consists of 80 four-option multiple-choice questions administered over a single 120-minute session. Candidates must score at least 40% in each of the three subjects (avoiding the 과락 failure floor) and achieve an overall score of 60 points or higher out of 100.

How does the Foreign Exchange Transactions Act distinguish residents from non-residents?

Under the Foreign Exchange Transactions Act (외국환거래법), individuals with Korean nationality are generally residents unless they reside abroad for 2 or more years. Foreign nationals become residents if they maintain a domicile or residence in Korea, engage in business in Korea, or stay continuously in Korea for 6 months or longer. Domestic branches of foreign corporations are treated as residents, while foreign branches of domestic corporations are treated as non-residents.

What are the rules for non-documented overseas remittances?

Under the Foreign Exchange Transactions Regulations, residents may remit funds overseas without submitting underlying transaction documentation through a designated primary foreign exchange bank up to USD 100,000 per person per calendar year (raised from the prior USD 50,000 threshold under foreign exchange modernization measures). Remittances exceeding this ceiling require documentation confirming the legitimacy of the transaction.

How does this OpenExamPrep practice bank support exam preparation?

This 100-question practice bank is an independent English-language MCQ study adaptation developed by OpenExamPrep. It pairs comprehensive conceptual explanations with exact Korean statutory and banking terms in parentheses, providing bilingual mastery of the official KBI syllabus.