FBAR and Foreign Account Reporting: What Korean Americans Need to Know

Many Korean Americans living in the US continue to hold bank accounts, savings accounts, or brokerage accounts in Korea. What a lot of people don't realize is that if the combined balance of those accounts exceeded $10,000 at any point during the year, you're likely required to file an FBAR (FinCEN Form 114) with the US Treasury. This applies not just to green card holders and citizens, but also to visa holders — including F-1 students and L-1 or H-1B workers — who qualify as US tax residents.

What Is FBAR and How Do You File It?

FBAR stands for Report of Foreign Bank and Financial Accounts. The standard deadline is April 15, with an automatic extension to October 15 — no paperwork needed to get that extension. You file directly through the FinCEN BSA E-Filing System (bsaefiling.fincen.treas.gov), and there's no filing fee. Here's what you'll need:

• The full official English name of each Korean financial institution (e.g., Kookmin Bank, Kakao Bank, Mirae Asset Securities)
• Your account number(s) and the maximum balance held during the calendar year — check your monthly or annual statements
• The country and address of the financial institution

FBAR is separate from IRS Form 8938 (FATCA), which is filed with your regular tax return. If your foreign financial assets exceed $50,000 at year-end (or $75,000 at any point during the year) as a single US resident, you'll need to file Form 8938 as well. These are two distinct requirements — if both apply to you, you must file both.

What If You Missed Past Filings?

Penalties for non-willful violations can reach up to $10,000 per violation, while willful violations can result in fines of up to $100,000 or 50% of the account balance — whichever is greater. If you've missed filings in prior years, don't panic. The IRS offers the Streamlined Filing Compliance Procedures, a program designed to help taxpayers catch up with significantly reduced — or in some cases, waived — penalties. Korean-speaking CPAs in major metro areas (LA, NY, Chicago, Atlanta) typically charge $200–$500 to handle FBAR filings on your behalf.

Every situation is different, and the rules around foreign account reporting can be nuanced. We strongly recommend consulting a licensed CPA or tax professional before filing — especially if you're catching up on prior years or have multiple accounts.