We extend the existing literature on related party transactions from a domestic to an international dimension and uncover new evidence of resource transfer by FDI firms to their foreign affiliates through overseas related party transactions. Employing uniquely-constructed data of Korean firms during 2005-2010, we find that a KOSPI or KOSDAQ FDI firm of a larger size with a higher export ratio, a lower import ratio and/or a higher major shareholder’s stock ownership is likely to engage in more overseas related party transactions. We also document non-positive effects of overseas related party transactions on firm value for the whole sample period but negative valuation effects of such transactions during the post-global financial crisis period. This negative valuation effect is associated mainly with the related party transactions of high-tech KOSPI (KOSDAQ) firms whose foreign affiliates are in developed (emerging) countries during the post-crisis period. These results suggest that FDI firms use related party transactions as a means of transferring their resources and supporting their financially-distressed foreign affiliates, especially after the crisis. Our results remain robust to the potential endogeneity issue.