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 Demonstrate Strength by Securing Group Contracts
After Fierce Competition, Audit Fee Dumping Remains
Concerns Over "Cutthroat Subscriber-Stealing Competition Like Telecoms"

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 competition to secure contracts at lower audit fees.

Major Listed Companies Enter the Free Appointment Market En Masse

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 are assigned an auditor by financial authorities for three years, after which they are free to select their own auditor for the next six years. Since free appointment allows companies to directly choose their auditors, this is an area where accounting firms engage in a full-scale battle based on business development 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. After three years of free appointment, companies have the option to retain their current auditor or select a new one. As a result, major financial institutions such as KB Financial Group, Shinhan Financial Group, and Woori Financial Group, as well as Samsung Electronics, SK Hynix, and Samsung Heavy Industries, all entered the bidding war at once.

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

Big Four Divide Major Company 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 the KB Financial Group account. Notably, Samil is recognized for minimizing the decline in audit fees and achieving qualitative results despite fierce competition. In the case of Woori Financial Group, incumbent auditor Samjong managed to retain the contract after competing with Anjin.

Excluding financial institutions, the largest contract went to Samjong. Samjong newly secured Hyundai Motor, which has assets of 354 trillion won, and aggressively expanded by winning new contracts with POSCO International and Shinsegae. At the same time, Samjong 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 achieved solid results by securing SK (215 trillion won in assets), 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 audit division revenue growth for accounting firms, could ultimately lead to heavier workloads for audit staff and a decline in audit quality. According to the Financial Supervisory Service, the audit division revenue growth rate for 254 accounting firms sharply dropped 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 added, "While the market share rankings among the Big Four are unlikely to change significantly amid the give-and-take, the only thing left in the end is the reduced audit fees. It feels like watching telecom companies fight recklessly to steal subscribers, which leaves a bitter taste."