"Cybersecurity, Amended Commercial Act, and Prevention of Financial Fraud:
Key Priorities for Corporate Boards"
There has been a recommendation that corporate boards of directors should prioritize cybersecurity, the amended Commercial Act, and the prevention of financial fraud as key areas of preparation for the future.
The Corporate Governance Development Center of Deloitte Korea Group announced on September 12 that it had held the "2025 Board of Directors and Audit Committee Expertise Enhancement Training Program" the previous day at the Fairmont Seoul Hotel in Yeouido. The event was attended by representatives from the boards of directors and audit committees of major domestic companies.
This program was organized in response to the growing importance of the roles of boards of directors and audit committees amid a changing business environment, including technological advancements, the spread of complex management risks, an increase in financial fraud cases, and amendments to the Commercial Act.
Following the opening remarks by Hong Jongseong, CEO of Deloitte Korea Group, Kim Hanseok, head of the Corporate Governance Development Center, introduced the current state of corporate governance, the purpose of the program, and its main sessions.
Deloitte Korea Group's Corporate Governance Development Center held a "Board of Directors and Audit Committee Expertise Enhancement Training Program" on the 11th at the Fairmont Seoul Hotel in Yeouido. Deloitte Korea Group
In the first session, Lee Sanghoon, Senior Director of T&T Cyber Risk & Compliance at Deloitte Korea Group, gave a presentation on "Cybersecurity and the Role of the Audit Committee." He emphasized that "cyber threats are no longer just an IT issue but a management risk that affects a company's finances, reputation, and overall operations," and presented response strategies and a checklist for boards of directors and audit committees.
The second session featured Lim Jungha, advisor at the Corporate Governance Development Center of Deloitte Korea Group and professor at the Seoul National University School of Law, who delivered a lecture on "The 2025 Amended Commercial Act and the Board's Response." Focusing on the key points of the amended Commercial Act, he outlined the specific details of directors' fiduciary duties, the criteria for fulfilling obligations to shareholders, and practical response measures such as liability for damages in the event of violations. He also discussed the main contents of the second amendment to the Commercial Act, which recently passed the National Assembly plenary session and the Cabinet meeting, and its implications for companies.
The final session was a panel discussion on "Solutions for Preventing Financial Fraud in an Era of Uncertainty." The discussion was moderated by Kim Kiyoung, incoming president of the Korean Accounting Association and professor at Myongji University School of Business. Panelists included Noh Junhwa, advisor at the Corporate Governance Development Center of Deloitte Korea Group and professor at Chungnam National University School of Business; Jang Jeongae, former advisor at the Corporate Governance Development Center of Deloitte Korea Group and professor at Ajou University School of Law; Jung Hyun, head of the Internal Accounting Management System CoE at Deloitte Korea Group; and Lee Seungyoung, leader of the AI Asset & Analytics Group at Deloitte Korea Group. The panel engaged in an in-depth discussion covering both practice and theory, including strengthening internal controls, requirements for director immunity in accounting fraud cases, the current status of early disclosure of financial fraud, and methods for risk assessment and diagnosis.
Kim Hanseok, head of the Corporate Governance Development Center at Deloitte Korea Group, stated, "Boards of directors and audit committees must effectively respond to major risk issues such as cybersecurity, amendments to the Commercial Act, and prevention of financial fraud in order to fulfill their core responsibilities of supervising management and protecting shareholders. I hope this program serves as a meaningful opportunity to review internal control systems and risk response strategies in a changing environment, and to provide practical insights that enhance directors' ability to apply these strategies in practice."
A replay of the program will be available on the official website of Deloitte Korea Group, its YouTube channel, and the online education platform for board and audit committee expertise enhancement, "Deloitte Boardroom Academy."
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