[Exclusive] "Even if the trainee salary is cut by tens of millions won"... All successful CPA candidates to be recruited by Big 4 firms

Will the '300' Unassigned CPAs Disappear?
Persuading the Big 4 and New CPAs Remains a Challenge

The Big 4 accounting firms (Samil, Samjong, Anjin, and Hanyoung) are planning to hire all successful candidates of this year's Certified Public Accountant (CPA) exam. Attention is focused on whether this can resolve last year's issue of unassigned CPAs (those unable to find practical training institutions). However, difficulties are expected as the hiring burden on large firms and opposition from new CPAs due to reduced trainee salaries may increase during this process.

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According to the industry on the 12th, the Korean Institute of Certified Public Accountants (KICPA) is considering a plan for the Big 4 accounting firms to hire all successful candidates of the second stage of this year's CPA exam as trainee accountants. This is based on the judgment that the Big 4 have relatively systematic practical training systems compared to local (small and medium-sized) accounting firms. If this plan proceeds as scheduled, the estimated 1,200 CPA candidates selected this year will undergo a two-year training period at large firms before being evaluated for official employment. CPA exam passers must complete two years of practical training at accounting firms or similar institutions to be officially registered as CPAs.

Exterior view of the offices of Samil, Samjung, Anjin, and Han Young accounting firms (from left to right).

Will the '300' Unassigned CPAs Disappear?

This plan emerged amid worsening employment difficulties for new CPAs. Last year, the number of CPA exam passers (1,250) increased compared to the previous year (1,100), while the hiring scale of accounting firms shrank, resulting in about 200 unassigned CPAs. Although the Financial Services Commission reduced the minimum planned selection number by 50 this year, the industry expects about 300 CPAs will still be unable to find practical training institutions. In response, KICPA has prepared a solution to be applied to CPA hiring starting this August.

A senior official in the accounting industry explained, “In the past, those who passed the judicial exam also received two years of training at the Judicial Research and Training Institute before being appointed as judges, prosecutors, or becoming lawyers. Similarly, the Big 4 are expected to accept 100% of CPA exam passers and act as a kind of 'military academy.'” He added, “Since the government cannot drastically reduce the number of CPA passers at once, this seems to be a fundamental solution.”

Persuading the Big 4 and New CPAs Remains a Challenge

Large accounting firms are currently opposing the move to hire all new CPAs. They are concerned that increased hiring will not only raise labor costs but also create management difficulties. A representative from a major accounting firm said, “The business environment is already poor, and we are reducing hiring, so we worry about shouldering the full burden of labor costs. Even if not costs, we lack the physical and time capacity to accommodate and manage all of them, so side effects are expected.”

In this regard, a plan is being considered to reduce trainee accountants' salaries below the current level to ease the cost burden on accounting firms. Currently, trainee salaries at large firms are around 60 to 70 million KRW, and the proposal is to lower them to 40 to 50 million KRW. However, this is expected to cause dissatisfaction among trainee accountants. Another accounting firm official hinted, “From the perspective of new CPAs, they would be doing the same work as existing passers but receiving lower pay, which could lead to fairness controversies.”

A senior industry official commented, “There is concern that excellent talent might leave due to reduced salaries, but since salaries can be restored after two years, time will resolve this issue. It seems to be a matter requiring mutual concession between accounting firms and passers.”