The Korean year-end audit timeline — what HQ should expect from November to April
For a December year-end Korean subsidiary, the statutory audit runs on a calendar that rarely matches the group's. HQ wants numbers in early January; the Korean audit report usually arrives in March. Knowing the local timeline helps you plan both.
This is the typical cycle for a non-listed company subject to the External Audit Act. (Listed companies have additional filing and internal control requirements.)
Key dates (December year-end, AGM in late March): financial statements to the auditor 6 weeks before the AGM · audit report 1 week before the AGM · corporate tax return by 31 March · audit report filed with the regulator within 2 weeks after the AGM.
The timeline at a glance
| When | What happens | Who drives it |
|---|---|---|
| Oct – Dec | Interim audit: planning, controls, early substantive work | Auditor |
| 31 Dec / early Jan | Inventory count observation; confirmations sent to banks, customers, suppliers | Company + auditor |
| Early – mid Jan | Group reporting package due to HQ (often working day 5–10) | Company |
| Mid Jan – Feb | Local closing under Korean GAAP; tax adjustments | Company |
| By mid-Feb | Auditor for the new year must be appointed (45 days from 1 Jan) | Company |
| ~6 weeks before AGM | Separate financial statements submitted to the auditor | Company |
| Feb – Mar | Year-end fieldwork, audit adjustments, management representation letter | Auditor + company |
| ~1 week before AGM | Audit report delivered to the company | Auditor |
| Late March | Annual general meeting approves the financial statements | Shareholders |
| By 31 March | Corporate income tax return filed (extension possible — see below) | Company / tax adviser |
| Within 2 weeks after AGM | Audit report filed with the regulator and published on DART | Auditor / company |
Things that surprise HQ
1. "Six weeks before the AGM" means mid-February
If the AGM is planned for the last week of March, the separate financial statements must reach the auditor around mid-February. That's a real, legal deadline — not the auditor's preference. If the company also prepares consolidated financial statements under K-IFRS, those are due four weeks before the AGM.
2. The local numbers may change after you've closed the group books
Group reporting typically closes in January; the Korean audit finishes in March. Audit adjustments made in February and March — provisions, impairment, revenue cut-off, tax — often don't flow back to the group numbers. Agree upfront with the local auditor and the group auditor on a materiality level and a cut-off date for adjustments, and track the reconciling items.
3. Korean GAAP is not group IFRS
Most non-listed subsidiaries prepare statutory accounts under Korean GAAP for non-listed entities (K-GAAP), not K-IFRS. Lease accounting, revenue recognition details and certain tax-driven entries can differ from the group package. A simple GAAP reconciliation prepared each year saves a lot of back-and-forth.
4. Corporate tax runs in parallel
The corporate income tax return is due within three months of the fiscal year-end month — 31 March for a December year-end. A company subject to external audit whose audit has not been completed can apply for a one-month extension (the application is due three days before the original deadline; interest applies to the tax paid late). Plan the tax computation alongside the audit rather than after it.
5. Next year's auditor appointment happens in the middle of all this
The auditor for the new fiscal year must be appointed within 45 days of the year start — around mid-February — while the current audit is still running. If you want to change auditors, decide in December.
A simple HQ checklist
- October: confirm the audit plan, AGM date and the deadlines it implies.
- November: agree group vs. local materiality and the cut-off for audit adjustments.
- December: confirm the auditor for next year; prepare inventory count instructions.
- January: deliver the group package; start the K-GAAP close and the GAAP reconciliation.
- February: finalise the financial statements (with board approval) and submit them to the auditor six weeks before the AGM.
- March: review the draft audit report and adjustments; AGM; tax return.
- April: reconcile final Korean numbers to the group package and document the differences.
Sources: Act on External Audit of Stock Companies, etc., Articles 6, 10 and 23; Enforcement Decree Articles 8 and 27 (as amended 26 May 2026); Corporate Tax Act Article 60. This article is general information, not advice for a specific company.