[Accounting Society Election] ② Choi Un-yeol, Designer of the 'Designated Auditor System,' Says "It Must Complete a Full Cycle of 6+3 Years"

Korean Institute of Certified Public Accountants, Major Candidates Relay Interview for President Election
"We Will Uphold the Purpose of the Periodic Auditor Designation System," Expresses Ambition

"The periodic auditor designation system is set for '6+3 years,' so we should discuss improvement directions only after completing one full cycle. It is unacceptable to retreat already before even completing one cycle. Upholding the purpose of the system is my most important mission."

Choi Un-yeol, a former Democratic Party lawmaker who has thrown his hat into the ring for the 47th president election of the Korean Institute of Certified Public Accountants (KICPA), expressed this ambition. Choi is the architect of the 'periodic auditor designation system.' This system allows companies to autonomously appoint external auditors for six years, after which the next three years' auditors are designated by the Securities and Futures Commission under the Financial Services Commission. Choi, who was active in the 20th National Assembly's Committee on Economy and Finance, led legislation for the advancement of corporate accounting.

Designer of the Periodic Auditor Designation System... Announces Candidacy for KICPA President

In a recent interview with Asia Economy, Choi said, "When I was in the National Assembly's Committee on Economy and Finance, I proposed the new External Audit Act, which introduced the designated auditor system. The goal was to enhance accounting transparency," adding, "Recently, the purpose of the system seems to be wavering, so as the person who proposed the bill, I am considering how to uphold the spirit of this law."

He emphasized, "I want to broaden consensus on why the new External Audit Act is necessary through extensive dialogue with stakeholders," and added, "Some say this law only burdens companies, but we must consider that increased corporate transparency raises corporate value." He continued, "When a company's creditworthiness improves, financial costs decrease. The rise in external audit costs should be seen not as an expense but as an investment."

Former Choi Un-yeol, Democratic Party of Korea lawmaker./Photo by Yoon Dong-joo doso7@

Choi stated, "In Korea, there are many cases where the interests of major shareholders and companies do not align," and explained, "Generally, when a company's competitiveness improves, shareholders, employees, government, and consumers all benefit. However, our inheritance and gift tax rates are excessively punitive, which places a heavy burden on major shareholders." He stressed, "I believe it is necessary to reasonably lower inheritance and gift taxes to align the interests of major shareholders and companies, and I want to play a role in that."

KICPA: Nearly 70% of Accountants Are Under 40... Need to Reflect This in Board Composition

He also pointed out, "Within KICPA, nearly 70% of accountants are under 40 years old," noting, "However, when looking at the composition of our board and council, this 70% is not well represented." Choi said, "We need a board composition that reflects the voices of female accountants, who make up about 20%, and young accountants," adding, "The governance within KICPA should be further advanced to listen to diverse stakeholders' opinions."

He also addressed the issue of the number of certified public accountants. Choi said, "There are differing opinions about continuously recruiting 1,000 to 1,200 people annually, but we need to redesign manpower policies to prepare for changes in the era, such as artificial intelligence (AI) technology," emphasizing, "I will have frank discussions with decision-makers to guide reasonable decisions on this matter."

Choi shared his views on the social role of accountants. He said, "Professional groups like doctors or lawyers solve problems when they arise. Accountants play an important social role by proactively evaluating companies to prevent problems and providing this information to stakeholders." He added, "If auditors take a subordinate position toward the audited companies, they cannot conduct thorough audits," and stressed, "There is a need for institutional changes that can elevate the social status of accountants and boost their self-esteem."

He candidly addressed perceived weaknesses compared to other candidates, such as age and practical experience. Choi said, "It is a fact that I am older," but added, "Having worked at a university for over 30 years, I meet 19-year-old students every year. My mindset is very young." Born in 1950, Choi graduated from Seoul National University’s Business Administration Department, passed the CPA exam in 1971, and served as a professor in the Business Administration Department at Sogang University for 34 years. He said, "It is mentioned that I lack practical experience, but the KICPA president is not supposed to engage in practical work. I can work with a vice president who is well-versed in practice," and emphasized, "It is important to have the ability to explain and raise understanding of the various situations accountants face in relation to the government, political circles, and the media."

Meanwhile, KICPA will accept candidate registrations for the 47th president election until mid to late next month. Candidates must be nominated by 100 KICPA members who are certified public accountants (CPAs) to register. On June 19, at the KICPA regular general meeting, a vote will be held among the candidates, and the one with the most votes will be elected president. Major candidates include Na Cheol-ho, CEO of Jaejeong Accounting Corporation; Lee Jeong-hee, president of Deloitte Anjin; and former Democratic Party lawmaker Choi Un-yeol (in alphabetical order). KICPA has about 26,000 accountant members and an annual budget reaching 50 billion KRW, making it a professional organization.