The Financial Supervisory Service said on the 10th that it will hold an online briefing on the auditor appointment system through its YouTube channel and other platforms so that small and medium-sized enterprises and limited companies newly subject to external audit this year can sign and report audit contracts within the deadline. The Korea Federation of Small and Medium Enterprises and the Foreign Investment Ombudsman will also take part.
Companies with a December year-end that are newly subject to external audit this year must appoint an auditor by the end of Apr. and report to the Securities and Futures Commission of the Financial Services Commission within two weeks after signing the contract. Violations may result in disadvantages such as an auditor designation.
A company subject to external audit is a stock corporation with total assets or sales of 50 billion won or more, or that meets at least two of the following: ▲ assets of 12 billion won or more ▲ liabilities of 7 billion won or more ▲ sales of 10 billion won or more ▲ 100 or more employees.
In the case of a limited company, it is subject to audit if it has total assets or sales of 50 billion won or more, or meets three or more of the following: ▲ assets of 12 billion won or more ▲ liabilities of 7 billion won or more ▲ sales of 10 billion won or more ▲ 100 or more employees ▲ 50 or more members.
According to the Financial Supervisory Service (FSS), an annual average of around 5,000 companies have newly fallen under the scope of external audit over the past three years. Specifically, there were 6,821 companies in 2023, 4,807 in 2024, and 4,747 in 2025.
The Financial Supervisory Service (FSS) plans to provide detailed guidance on matters such as who selects the auditor, appointment procedures, and electronic filing instructions so that companies subject to an initial external audit do not suffer disadvantages such as auditor designation. An FSS official said, "We will respond promptly to consultations and inquiries via our website or by phone."