[Accounting Society Election] ① Lee Jeonghee, Deloitte Anjin Chairperson, "I Will Show Young Accountants a Wider World"

Relay Interview with Candidates for the 47th President of the Korean Institute of Certified Public Accountants
President Lee Jeong-hee Emphasizes Three Keywords: 'Balance, Youth, Women'

"I want to create a framework that allows young accountants to see the world more broadly. Drawing on my experience in civil society activities and 40 years of expertise in accounting, I will demonstrate leadership in integration and coordination."

Lee Jeong-hee, chairman of Deloitte Anjin Accounting Corporation, who has announced his candidacy for the 47th president election of the Korean Institute of Certified Public Accountants (KICPA), expressed this ambition.

In a recent interview with Asia Economy, Chairman Lee said, "Accountants are not just technicians; they perform highly valuable and meaningful public work through accounting audits," adding, "To properly fulfill this role, the accounting society needs to be more organized and systematized than it is now."

He emphasized that a robust social infrastructure of accounting audits must be established to prevent Korean companies with global competitiveness from facing crises due to accounting failures, which lead to losses in national competitiveness. For this, accountants must possess policy-making and academic capabilities.

Born in 1960, Lee graduated from Seoul National University with a degree in Business Administration. After passing the CPA exam in 1982, he joined Anjin in 1983, serving as head of the tax division and as CEO. He is recognized for his deep understanding of accounting industry issues and his extensive personal network.

Lee Jeong-hee, Chairperson of Deloitte Anjin LLC

Prerequisites for Organizing and Systematizing the Accounting Society: Three Keywords - 'Balance, Youth, Women'

He mentioned that for the accounting society to become organized and systematized, it is necessary to consider three keywords: 'balance, youth, and women.'

Chairman Lee said, "Looking at the accounting industry now, it is somewhat complex, divided into the 'Big 4' (large accounting firms) and 'local' (small and medium-sized accounting firms), registered and unregistered firms," adding, "I want to help bridge the invisible gaps so that the entire group of 28,000 members of the accounting society can be unified as a single entity." He added, "This balance is not only necessary for the efficient internal operation of our accounting society but also a prerequisite for making external statements and fulfilling public roles more faithfully."

He also spoke about the position of young and female accountants. Chairman Lee said, "Young accountants, classified as youth, make up about 70% of the total members," adding, "They are the future of the Korean accounting industry and the future of Korean professional groups."

He continued, "These individuals have undergone tremendous professional training. I hope they can not only address the operational issues of the accounting society but also have a broader social understanding and jointly consider public tasks of our society. I want to establish and provide the necessary networks and frameworks for this." He emphasized, "Women accountants account for more than 20% of all accountants. I will create measures and systems to involve youth and women more in accounting industry leadership and to accurately capture and gather their voices."

He also expressed a desire to contribute to improving accountants' working environments. Chairman Lee said, "Large firms have scale and are equipped to some extent through the use of various technologies and internal training, but small and medium-sized accounting firms face many difficulties," adding, "For common industry issues, I want the accounting society to proactively develop and support educational programs, software, and platforms necessary for work."

Periodic Auditor Appointment System: Some Improvements Needed but Fundamental Purpose Must Be Maintained

He also revealed plans to strengthen the independence of the external audit system. Chairman Lee said, "The new external audit law system, represented by the periodic auditor appointment system, has been in effect for 6 to 7 years," adding, "However, it has been criticized by audited companies, the Korea Listed Companies Association, and economic organizations for various reasons."

He said, "There are voices calling for abolition or significant relaxation, but we need to revisit the background and progress of the introduction of the periodic auditor appointment system." He continued, "The purpose was to enhance the independence of external audits and improve the accounting transparency of Korean companies, which ultimately connects to the external credibility of Korean companies and the economy."

He added, "It was a policy judgment and social consensus at the time that this was a transitional system necessary considering the governance level and other factors of our companies, without losing sight of the bigger picture. However, after 6 to 7 years, it is difficult to say there have been fundamental or qualitative changes sufficient to reverse the system."

Chairman Lee judged that although the corporate accounting environment has improved, it has not yet reached a sufficient level. He analyzed that the current system should remain for a certain period, and inconveniences experienced by companies or misconduct by some accountants or firms during implementation should be controlled and managed by other means. He emphasized that the current external audit system should be maintained with some level of improvement.

Industry's Claim for Reduction in Number of Accountants: Suggests Setting Required Numbers for 3-5 Years and Adjusting Flexibly Annually

He also shared his views on the quota for accountants. Chairman Lee explained, "We are selecting about 1,000 to 1,200 accountants annually, and there are opinions that this number is too high." He evaluated, "Over the past 20 years, about 1,000 accountants have been selected annually, reaching nearly 30,000 now. Considering the scale of the Korean economy and the various roles the accounting industry must fulfill, I believe the overall supply and demand of accountants have now reached a balanced point." As a specific methodology, he proposed introducing a medium-term example system of about 3 to 5 years to enhance predictability and system stability.

He advised, "For example, when determining how many accountants are needed over the next three years, this is linked to various variables such as domestic and international economic forecasts and the expansion of the accounting industry's role," adding, "It would be advantageous for managing accounting workforce supply and demand to commission a professional organization to set an appropriate range for the number of accountants and operate flexibly with plus or minus adjustments annually according to economic conditions. This would also help overall predictability and stable operation." He further emphasized, "The Financial Services Commission decides and announces the accountant quota at the end of each year, and I hope efforts will be made to provide transparent information on the discussion process and key factors considered."

Finally, he said, "I hope our accountants recognize and take pride in their role as social experts entrusted with protecting the public interest and view Korean society more broadly and expansively," adding, "I want them to continuously strive to acquire the qualifications and capabilities expected by society and to develop autonomous capabilities to socially speak out and make demands regarding systems and related aspects. I will be their messenger."

Meanwhile, KICPA will accept candidate registrations for the 47th president election until mid to late next month. Candidates must receive recommendations from 100 KICPA members who are certified public accountants (CPAs) to register. On June 19, at the KICPA regular general meeting, voting will be held among the candidates, and the one with the most votes will be elected president. Major candidates for the next president include Na Cheol-ho, CEO of Jaejeong Accounting Corporation; Lee Jeong-hee, chairman of Deloitte Anjin; and Choi Un-yeol, former member of the Democratic Party (in alphabetical order by Korean name).