FSS to Hold Nationwide Briefing Sessions on the External Audit System

The Financial Supervisory Service will hold nationwide briefing sessions to enhance the understanding of companies and auditors regarding the Act on External Audit of Stock Companies. The aim is to prevent disadvantages arising from violations of auditor appointment procedures and deadlines.

The Financial Supervisory Service announced on January 8 that, in cooperation with the Korea Chamber of Commerce and Industry, it will hold the "2026 Nationwide Briefing Sessions on the External Audit System" in five cities-Seoul, Gwangju, Daegu, Ulsan, and Busan-from January 26 to 30.

These sessions are being organized to improve overall understanding of the Act on External Audit of Stock Companies, ahead of the period when companies with December fiscal year-ends sign audit contracts.

Companies subject to external audit must appoint an external auditor selected by their internal oversight body within the statutory deadline. However, the Financial Supervisory Service explained that due to a lack of understanding of the system, there are still frequent cases where companies violate the appointment deadline or procedures and are consequently subject to auditor designation measures.

To improve accessibility for companies and auditors located in provincial areas, where educational opportunities are relatively limited, the sessions will be conducted in a format where the Financial Supervisory Service visits these regions directly.

The sessions will cover major aspects of the auditor appointment system, including the criteria for determining which companies are subject to external audit, grounds for exemption, deadlines and procedures for appointing auditors, and qualification requirements for auditors.

Regarding the auditor designation system, the sessions will address topics such as reasons for periodic and discretionary designation, the timing of designation, the business years subject to designation, and methods for requesting re-designation. The sessions will also include explanations of frequently asked questions from auditors, such as how auditors are assigned to each company.

In addition, the sessions will provide guidance on important considerations when forming an auditor appointment committee, points to note for different types of companies such as first-time audit companies and large unlisted joint-stock companies, and examples of major legal violations such as missing the auditor appointment deadline or violating selection procedures.

Applications to participate in the sessions must be submitted in advance through the website of the local chamber of commerce and industry in each region. For companies and auditors unable to attend, the Financial Supervisory Service plans to post related materials on its website after the sessions conclude.