South Korea notifies 1,193 companies of auditor assignments for 2027

South Korea’s Financial Supervisory Service said on October 19 that it had sent preliminary notices of auditor assignments for the 2027 financial year to companies and auditors. The notices cover 1,193 companies with December year-ends, down 37, or 3%, from 1,230 last year. The total comprises 404 periodic assignments and 789 assignments made on specified grounds. [ 1 , 2 , 3 , 4 ]

Under the periodic system, qualifying companies that freely selected their auditors for six consecutive financial years receive assigned auditors for the following three years. The system aims to ensure auditor independence and improve audit quality. Newly designated companies in this category include 88 listed companies and four large unlisted companies without separation of ownership and management. Another 312 companies are continuing existing periodic assignments. [ 1 , 2 , 3 , 4 ]

Of the 789 assignments on specified grounds, 382 are new, including 148 listed and 234 unlisted companies. Planned listings account for 222 new assignments, while failure to meet financial criteria, such as three consecutive years of operating losses, accounts for 106. Another 407 companies have continuing assignments arising from previously established grounds. [ 1 , 2 ]

Companies and auditors should review the preliminary notices for grounds to request reassignment, including concerns about auditor independence, and submit opinions within two weeks of receipt. The regulator plans to review those opinions before issuing final notices on November 12. Companies and auditors must conclude audit contracts within two weeks after receiving final notices. Asia Economy reported that, if there are no objections, they may agree contracts before the final notices arrive. [ 1 , 2 , 4 ]