Statutory Audit

Korean companies above certain size thresholds must be audited every year under the Act on External Audit of Stock Companies, etc. (the "External Audit Act"). Many foreign-owned subsidiaries cross these thresholds without HQ noticing until a deadline is missed.

What this covers

• Checking whether your Korean entity is subject to a statutory audit, and from which year
• Auditor appointment timing and first-year audit planning
• Annual statutory audit of separate (and, where required, consolidated) financial statements
• Communicating findings in English to HQ and group auditors

Typical questions

• Our subsidiary grew quickly last year — does it need an audit now?
• We're a limited company (yuhan hoesa). Do the same thresholds apply?
• What does the Korean auditor need from us, and when?

Related reading: Does your Korean subsidiary need a statutory audit?