Samil Secures Financial Groups, Samjung Wins Hyundai Motor... Big Four Accounting Firms Wrap Up Major Contract Bidding War

'End of Designation' and 'Three Years of Free Appointment' Overlap
Unprecedentedly Broad Battlefield Emerges
Anjin and Hanyoung Also Secure Group Contracts, Demonstrating Strength
Behind Fierce Competition Lies 'Fee Dumping'
"Cutthroat Competition Like Telecom Subscriber Wars" Raises Concerns

The accounting industry has concluded the bidding war for auditors of major listed companies for the 2026 fiscal year. Last year, as large corporations such as Hyundai Motor, Hanwha, SK, and CJ flooded into the free appointment market, competition among the Big Four accounting firms-Samil, Samjong, Anjin, and Hanyoung-became fiercer than ever before. However, as the battlefield widened, concerns have grown within the industry about deteriorating profitability due to intensified underbidding for audit fees.

Large Listed Companies Enter the Free Appointment Market in Droves

According to the accounting industry on January 2, listed companies with assets of 2 trillion won or more completed the selection of external auditors for the 2026 fiscal year at the end of last month. Under the periodic auditor designation system, which was fully implemented in 2020, companies have auditors designated by the financial authorities for three years, after which they are free to appoint auditors of their choice for the next six years. Since free appointment allows companies to directly select their auditors, this is an area where accounting firms engage in a full-scale battle based on sales capabilities and price competition.

Last year, in particular, the market was even hotter than usual due to the concentration of available contracts. Until 2024, competition was mainly focused on contracts whose designated audit period had ended, but last year, contracts that had reached three years after transitioning to free appointment also became available at the same time. After three years of free appointment, companies have the option to retain their existing auditor or switch to a new one. As a result, major financial institutions such as KB Financial Group, Shinhan Financial Group, and Woori Financial Group, as well as companies like Samsung Electronics, SK Hynix, and Samsung Heavy Industries, all entered the bidding war simultaneously.

A senior official at a major accounting firm stated, "We had to simultaneously defend existing clients and aggressively compete to win new ones," adding, "This is the first time the battlefield has expanded so much since the introduction of the new External Audit Act."

Big Four Share Major Contracts

In the bidding war for 'super-large' financial institutions, where annual audit fees reach the 10 billion won range, Samil emerged as the frontrunner. Samil succeeded in winning Shinhan Financial Group, which had previously been handled by Samjong, and also retained its position as auditor for KB Financial Group. Notably, Samil is credited with achieving qualitative results by minimizing the decline in audit fees despite fierce competition. In the case of Woori Financial Group, the incumbent auditor, Samjong, managed to retain the contract after a close contest with Anjin.

Excluding financial institutions, the largest contract went to Samjong. Samjong aggressively expanded its presence by newly winning Hyundai Motor, which has assets of 354 trillion won, as well as POSCO International and Shinsegae. At the same time, it maintained contracts with key clients such as Samsung Electronics and SK Hynix, which had reached three years of free appointment, thereby consolidating its position.

Anjin and Hanyoung also mounted a strong counterattack. Deloitte Anjin demonstrated its strength by winning contracts with Hanwha Group (assets of 284 trillion won), Hanwha Life Insurance (178.5 trillion won), LG, and Celltrion. EY Hanyoung also secured substantial results by obtaining contracts with SK (assets of 215 trillion won), SK Innovation (107.9 trillion won), and CJ (48.1 trillion won).

Exterior view of the office buildings of Samil, Samjong, Anjin, and Hanyoung Accounting Firms (from left).

Audit Fee Pressure Intensifies Amid Expanding Competition

However, behind the impressive contract results lies what some describe as a 'chicken game' of cutthroat competition. There are concerns that excessive reductions in audit fees, amid slowing growth in audit revenue for accounting firms, could ultimately lead to increased workloads for audit staff and a decline in audit quality. According to the Financial Supervisory Service, the audit revenue growth rate for 254 accounting firms sharply declined from 16.7% in 2022 to 4.7% in 2023 and 3.2% in 2024.

An industry insider noted, "Last year's most intense bidding war ever was accompanied by a decline in audit fees." Another industry source commented, "While the market share rankings among the Big Four are unlikely to change significantly amid the ongoing tug-of-war, the only thing left in the end is reduced audit fees," adding, "It feels like watching telecom companies recklessly fight to poach subscribers, and it's disheartening."