Financial Services Commission Holds Meeting with Korean Officials from International Accounting Organizations

The Financial Services Commission decided to expand communication and response among domestic personnel active in international accounting organizations to reaffirm the international community's trust in the Korean economy despite rapidly growing domestic and international political uncertainties. Regarding revisions to international accounting standards, they agreed on providing specific standards and sufficient preparation periods to avoid increasing the burden on companies.

On the 24th, the Financial Services Commission announced that these measures were discussed at a meeting of domestic personnel from international accounting organizations chaired by Lee Yoon-soo, a standing commissioner of the Securities and Futures Commission.

The meeting was attended by Baek Tae-young, professor at Sungkyunkwan University; Kim Yong-beom, head of finance at KT&G; Lee Han-sang, president of the Korea Accounting Standards Board; and Lee Bang-sil, vice president of SK Hynix, all active in international accounting organizations such as the International Financial Reporting Standards (IFRS) Foundation. The agenda included trends in the establishment and revision of international accounting standards and the major international organization entries and activities of domestic personnel.

Recently, two individuals have newly entered international accounting organizations, including Lee Han-sang, president of the Korea Accounting Standards Board, who began serving as the first Korean member of the Public Interest Oversight Board (PIOB). Additionally, from the 1st of this month, So Yang-ho, an equity portfolio manager at the Royal Bank of Canada, has been serving as a member of the Capital Markets Advisory Committee (CMAC) within the IFRS Foundation. The Financial Services Commission evaluated this as "a result demonstrating Korea's active participation in international accounting discussions and the international credibility formed thereby."

At the meeting, the main revisions to accounting standards being prepared by the International Accounting Standards Board (IASB) were discussed, including their impact on the domestic capital market. The participants pointed out that since there is a risk of increased audit and disclosure burdens on companies due to measurement difficulties, it is necessary to provide specific standards, various examples, and sufficient preparation periods. They also agreed on the need to actively communicate with the international community regarding the appropriate disclosure level of commercially sensitive information.

Furthermore, the participants expressed concern over increased external uncertainties following the inauguration of the second administration of Donald Trump in the United States and significant political uncertainties domestically. They agreed to expand communication among Korean personnel active in international accounting organizations through regular meetings. In addition, according to the directions discussed at the meeting, they decided to actively present the voices of stakeholders in our capital market on major issues within their respective international organizations.