Unspecified Accountants' Collective Action After 22 Years
Financial Authorities' Prediction Failure Causes 'Employment Crisis'
Employment Difficulties Extend Beyond Accounting Firms to General Companies
HanGongHoe Responds Actively... Financial Services Commission "Considering Support for Practical Training"
The 'employment crisis' among new accountants is spreading into collective action targeting financial authorities. 'Unassigned accountants' have launched a 'truck protest' against the authorities. This is the first time in 22 years that they have gathered collectively to demonstrate their strength. Unassigned accountants refer to those who have passed the Certified Public Accountant (CPA) exam but have not found a training institution.
According to the 'Emergency Countermeasures Committee to Urge Resolution of the Unassigned CPA Issue (ECC)' on the 31st, 84 unassigned accountants conducted truck protests four times in total: starting with the Financial Services Commission on the 29th and 30th, followed by the Financial Supervisory Service on the 31st, and the Board of Audit and Inspection on November 4th. The ECC stated, "We took to protesting because the Financial Services Commission rejected our request for disclosure of information regarding the selection process of accountants with the unacceptable reason of 'fair selection,'" adding, "This admits that the decision was made without any scientific or rational basis." They demanded the government to resolve the difficulties in finding training placements.
The Financial Services Commission decides the number of exam passers, the Financial Supervisory Service manages the exam, and the Board of Audit and Inspection pointed out problems in the 2023 selection process. There are suspicions that the Financial Services Commission increased the number of passers excessively in response to the Board of Audit and Inspection's criticism.
"Why not just join a regular company?" vs "Nonsense from those who don't understand reality"
An unidentified accountant is conducting a 'truck protest' against the Financial Services Commission (left). On the right is the scene of collecting protest funds through a chat room. The chat room and names have been blurred at the provider's request. [Photo by Bidaewe]
Considering those retaking the job search, the number of unassigned accountants is estimated to approach 300. Although a record 1,250 candidates passed this year's exam, the hiring capacity of the Big Four accounting firms was only 842, creating an 'unprecedented gap.' Even considering local firms, the number far exceeded what accounting firms could accommodate. The 300 unassigned accountants are comparable in number to the 298 accountants employed by Shinhan Accounting Firm, ranked 8th in industry revenue (based on the 2023 fiscal year).
Concerns arose even before this year's CPA exam that the authorities had failed in demand forecasting. According to the industry, 22 years ago in 2002, unassigned accountants surged due to the authorities' failure in demand forecasting, leading to collective protests. At that time, 262 CPA passers filed a constitutional appeal, arguing that the mandatory two-year training period stipulated by the Certified Public Accountant Act infringed on their freedom of occupation, pursuit of happiness, and fairness. The Constitutional Court ruled the regulation constitutional, and the training requirement remains in place to this day.
Unassigned accountants participating in the ECC prepared the truck protests through group chat rooms. The truck rental fee is known to be about 2 million KRW. These effectively unemployed individuals pooled their money bit by bit. The Financial Services Commission's stance, leaked through some media, that "Why not just get a job at a regular company or public institution?" also provoked them. The ECC said, "In fact, ECC members applying to non-accounting firms, i.e., regular companies, have experienced document rejections and interview failures," adding, "Many believe that being a CPA passer is actually a hindrance in hiring."
"Complaining from the well-fed? We've never been well-fed"
Some voices criticize, "CPA is just a qualification exam, not a national exam; why should employment be guaranteed?" and "Isn't this entitlement talk for a professional?" Hwang Byung-chan, Youth Vice President of the Korean Institute of Certified Public Accountants (KICPA), said, "These reactions come from not understanding the nature of the CPA system, where one is recognized as a professional only after training, and the importance of audit work, which is almost a quasi-public good," adding, "It is like throwing stones at unemployed people who have never been well-fed, and contrary to perception, except for the Big Four, existing accounting firms do not offer good treatment." He also said, "The financial authorities' claim that there is sufficient demand for accountants in regular companies is half right and half wrong," adding, "Almost no company accepts trainee accountants who have not undergone more than three years of training."
According to Vice President Hwang, the turnover rate at the Big Four is at an all-time low, and combined with the industry slowdown, demand for new hires has sharply decreased. Due to increased difficulty in changing jobs, local firm accountants aiming to rejoin the Big Four tend to stay, removing incentives for local firms to hire new personnel. Vice President Hwang said, "If the current selection scale is maintained, in a few years, the number of unassigned accountants will match the annual number of passers."
KICPA is taking the employment crisis seriously. Chairman Choi Un-yeol is visiting accounting firms, appealing to "give opportunities to trainee accountants," and KICPA is conducting demand-related research with the Korean Accounting Association. Based on this research, they are striving to ensure that industry opinions are reflected as much as possible in the selection numbers for next year, scheduled for November. A Financial Services Commission official said, "We are monitoring the situation," adding, "If necessary, we are also reviewing support measures for practical training within this year with KICPA."
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