"Public Interest Corporations Must Review Outsourcing to Strengthen Accounting Transparency"

Proposal for 'Business Process Outsourcing'
to Enhance Accounting Transparency
and Expertise in Public Interest Corporations

A proposal has been made that 'Business Process Outsourcing (BPO)' is necessary to strengthen the accounting transparency and expertise of public interest corporations.

Yoon Gyuseop, leader of the Nonprofit Specialist Team at Samil PwC, is speaking at the 'Strengthening Accounting Expertise of Public Interest Corporations' seminar held on the 17th at Amore Hall on the 2nd floor of the headquarters in Yongsan-gu, Seoul. Photo by Samil PwC

Samil PwC announced on the 18th that it held a seminar on the 17th at Amore Hall on the 2nd floor of its headquarters in Yongsan-gu, Seoul, under the theme of 'Strengthening the Accounting Expertise of Public Interest Corporations.' This seminar was organized to share practical solutions from academia and Samil PwC experts amid growing demands for increased trust and expertise in public interest corporations. The regulatory environment surrounding public interest corporations is rapidly changing, including the introduction of accounting standards in 2018 and the implementation of the periodic auditor designation system in 2022 (applicable to entities with total assets exceeding 100 billion KRW).

Professor Kim Bonghwan of Seoul National University Graduate School of Public Administration emphasized, "Nonprofit organizations represent citizens' voices, provide social and regional services, and receive government subsidies; therefore, accounting and operational transparency are both their competitiveness and raison d'?tre." He added, "Rather than hiring experts, which involves significant time and financial costs, nonprofit organizations can efficiently enhance their proactive transparency through service outsourcing." BPO is a business operation strategy that delegates non-core tasks to external specialized institutions to achieve cost reduction, increased operational efficiency, focus on core competencies, and utilization of the latest technologies.

He estimated that by adopting BPO, labor costs could be reduced by up to an average of 20%, saving as much as 139 billion KRW per month. Other positive effects presented included ▲strengthening internal controls through continuous monitoring by external experts ▲improving efficiency and sustainability of settlement tasks via digital-based systems ▲enhancing the reliability and efficiency of government subsidy execution. Professor Kim suggested, "However, considering issues such as cost burdens, it is necessary to consider supporting part of the accounting BPO costs through subsidies."

A case study of Samil PwC's BPO services was also introduced. Samil PwC's nonprofit specialist team began providing nonprofit accounting and tax services in 2005 and launched 'OnStars' in 2023, a customized management service for nonprofit corporations, offering integrated services throughout the lifecycle of public interest corporations. Yoon Kyuseop, leader of Samil PwC's nonprofit specialist team, stated, "Based on our experience providing tailored services to various types of nonprofit corporations such as school foundations, medical corporations, and social welfare corporations, we offer a one-stop service from accounting bookkeeping to tax filing and external audit preparation," emphasizing, "Proactive response, expertise, and customization are Samil PwC's competitive advantages."

Meanwhile, Samil PwC established the first nonprofit corporation support center among accounting firms in 2016. The expanded nonprofit specialist team launched last year is dedicated to consulting nonprofit corporations and holds annual seminars on major issues facing public interest corporations.

Yoon Kyuseop, leader (vice president) of Samil PwC's nonprofit specialist team, said in his opening remarks, "Domestic public interest corporations are facing difficulties not only due to regulatory changes such as the introduction of accounting standards but also due to manpower shortages," adding, "We hope this seminar will help public interest corporations focus on their core businesses and find sustainable operational models."