FSS: "First-time External Audit Target Companies Must Appoint Auditor Within 4 Months"

On the 8th, the Financial Supervisory Service announced that it will hold an 'Online Briefing Session on the Auditor Appointment System' in collaboration with the Korea Federation of SMEs and the Foreign Investment Ombudsman.

Companies subject to external audits are corporations and limited companies with total assets or sales exceeding certain thresholds, with more than 5,000 companies newly included each year.

Newly included companies must appoint an auditor within four months from the start of the fiscal year and report this to the Securities and Futures Commission under the Financial Services Commission within two weeks after signing the contract. Failure to comply with these obligations may result in disadvantages such as auditor designation.

During the briefing session, the Financial Supervisory Service plans to provide guidance on determining whether a company is subject to external audits, the auditor selection cycle, and appointment procedures.