'Daewoo Shipbuilding Accounting Fraud' Causes Anjin to Fall, Han Young Surpasses... Reclaiming the 'Big 3' in Accounting

Anjin's Performance Plummets After Daewoo Shipbuilding Accounting Scandal
Rises to Big 3 Accounting Firms in 5 Years

Average Employee Salary Dominated by Samil at 173 Million KRW
Anjin Ranks 4th with 114 Million KRW

[Asia Economy Reporter Ji Yeon-jin] Anjin Accounting Corporation has risen to become the third largest in the domestic accounting industry. Anjin, which had maintained second place among the Big Four accounting firms, was pushed to last place due to the Daewoo Shipbuilding & Marine Engineering accounting scandal, but after a fierce chase, it has reclaimed its ranking after five years.

According to the Financial Supervisory Service's electronic disclosure system on the 4th, Hanyoung Accounting Corporation announced in its business report submitted on the 30th of last month that its revenue for the 2021 fiscal year reached 436.4 billion KRW. On the same day, Samil Accounting Corporation also disclosed achieving sales of 888.5 billion KRW. These accounting firms have a June fiscal year-end, and including sales from their separate consulting businesses, they announced revenues of 627.9 billion KRW and 1.2323 trillion KRW, respectively.

Previously, Anjin reported sales of 447.7 billion KRW in its business report submitted on the 31st of last month, surpassing Hanyoung based on separate accounting firm sales. Samjeong Accounting Corporation earned 761 billion KRW during this period, maintaining its second place in the industry.

Anjin was revealed to have overlooked the accounting fraud of Daewoo Shipbuilding & Marine Engineering, which exceeded 5 trillion KRW, resulting in a suspension of new audit work for one year in 2017 and a sharp decline in performance. Sales dropped from 308.9 billion KRW in 2016 to 291.9 billion KRW the following year, and further plummeted to 69.7 billion KRW in 2018. During this period, Hanyoung grew from 216.3 billion KRW to 265.3 billion KRW and then to 336 billion KRW, rising to third place in the industry.

The combined revenue of the Big Four accounting firms reached 2.5337 trillion KRW, an increase of 17.21% compared to the previous year. This is a significant jump from the previous year's revenue growth rate of 9.2%. Samjeong recorded the highest revenue growth rate at 22.71%, followed by Anjin at 19.51%. Samil grew by 16.4%, and Hanyoung by 8.15%. Samjeong led the growth with a 31.91% increase in management consulting revenue, rising from 328.9 billion KRW to 433.9 billion KRW. Samjeong's management consulting revenue ratio exceeded 57% from 53.03%. Anjin's management consulting revenue surged 36.9% year-on-year to 239 billion KRW, expanding its revenue ratio from 46.61% to 53.40%.

In the audit sector, Samil Accounting Corporation showed the highest revenue growth rate. Samil earned 286.1 billion KRW in audit revenue for the 2021 fiscal year, showing a 14.96% increase. Samjeong's audit revenue rose 10.26% year-on-year to 214.6 billion KRW. Hanyoung's audit revenue increased 13.25% to 175.6 billion KRW, and Anjin's rose 2.28% to 123.4 billion KRW.

The average annual salary of employees at the Big Four accounting firms was highest at Samil with 173.44 million KRW, followed by Samjeong (127.18 million KRW), Hanyoung (121.55 million KRW), and Anjin (114.54 million KRW). The number of accountants earning more than 500 million KRW surged 120% from 58 in the 2020 fiscal year to 128 in the 2021 fiscal year. Samil had the most with 57, followed by Samjeong with 51. Hanyoung had 11, and Anjin had 9.

The highest-paid salary earner was Kim Gyo-tae, chairman of Samjeong, with 2.602 billion KRW. Yoon Hoon-soo, CEO of Samil, followed with 2.219 billion KRW. Hong Jong-sung, CEO of Anjin, earned 1.326 billion KRW, and Park Yong-geun, CEO of Hanyoung, earned 1.01 billion KRW.