The "2025 Accounting Trend Symposium" opened to a full house on the morning of 18th at the Westin Josun Hotel in Jung District, Seoul. The symposium was organized to assess the current state and problems of the accounting system and to discuss the need to enact a Basic Accounting Act to enhance accounting transparency across society.
Kim Young-su, CEO of ChosunBiz, said in opening remarks that "accounting is the infrastructure that supports economic order and a core system that raises transparency across society and determines national competitiveness." Kim added, "However, this year Korea's accounting transparency ranking plunged to 60th out of 69 countries worldwide," noting, "It is time to discuss establishing a unified accounting framework for the nonprofit institutional sector, where the lead ministries differ by field."
Choi Un-yeol, president of The Korean Institute of Certified Public Accountants, in congratulatory remarks, voiced self-reflection that the industry's attention and efforts to enhance accounting transparency in the nonprofit institutional sector have been relatively lacking. He said that while the for-profit institutional sector was able to raise accounting standards a notch with the introduction of the revised External Audit Act (the new External Audit Act) in 2018, a blind spot in oversight emerged in the nonprofit institutional sector.
Choi pointed out, "Even in cases of private consignment, government ministries are subject to accounting audits under the Subsidies Act, but local governments are governed by local government ordinances rather than the Local Subsidies Act," adding, "In other words, only 40 out of 243 local governments are receiving accounting audits, leading to leaks in local fiscal management."
He stressed, "An institutional foundation is needed to apply consistent accounting policies to both the for-profit and nonprofit institutional sectors," adding, "The Basic Accounting Act is not merely the enactment of a law, but an important starting point that will provide useful information for national policy decision-making and strengthen the transparency and reliability of accounting information."
Choi also said, "The Korean Institute of Certified Public Accountants will work closely with the government, academia, and industry to do its utmost to systematically overhaul the domestic accounting system and strengthen global credibility."
Shin Jeong-hoon, a lawmaker of the Democratic Party of Korea, said in congratulatory remarks, "Transparent accounting is essential to a healthy democracy and efficient state affairs, and as local decentralization matures, it is a very important time to build an integrated accounting system spanning the central government, local governments, and the public and private spheres," adding, "As the legislative branch, the National Assembly will actively respond to the changes and needs of the times and work together to establish an institutional foundation for transparent accounting in government and the private sector."
Two lectures and a panel discussion were arranged for the symposium that day. The first presentation was given by Park Jong-seong, a professor in the School of Business at Sookmyung Women's University. Park will introduce the need to enact the Basic Accounting Act and lecture on key points such as enhancing the usefulness of accounting information and minimizing duplication and confusion in operations.
Next, Kim Beom-jun, a professor in the Department of Accounting at the Catholic University of Korea, will give a lecture on the need for accounting audits of privately consigned project expenses. Kim will offer in-depth views on differences when preparing, auditing, and disclosing accounting information among stock companies, nonprofit corporations, and the public sector. He will also identify key issues related to accounting audits for local governments' private consignment and explain how to enhance accounting transparency.
A panel discussion will also be held with experts from the accounting industry and academia and stakeholders from the nonprofit institutional sector. Kim Gi-young, a professor in the Department of Business Administration at Myongji University, will chair the discussion. Panelists include Ahn Tae-joon, a professor at Hanyang University School of Law; Lee Su-mi, standing member of the Accounting Standards Board at the Korea Accounting Standards Board; Kim Bong-hwan, a professor at Seoul National University Graduate School of Public Administration; Choi Ho-yun, CEO of Deoham Accounting Firm; Moon Jae-seong, head of the Higher Education Finance and Accounting Headquarters at the Korea Advancing Schools Foundation (KASFO); Bae Won-gi, director of the Korea Institute for Nonprofit Organization Evaluation; and Kim Mi-ra, Deputy Minister of compliance at Korea Compassion.