Statutory Audit

Act on External Audit of Stock Companies has been amended in the year 2018.    Based on new law, the requirement of being audited by the external auditor has been diversified than before.   There are two kinds of stock companies in Korea.   One is CH (Chusik Hoesa), the other, YH (Yuhan Hoesa).    CH and YH are treated a bit differently in the new law.

Please click here  for detailed information.

Act on External Audit of Stock Companies

Article 4 Companies subject to external audit

Companies enumerated below needs to be audited by the independent external auditors like CPA firm

  1. Companies listed to Korea Stock Exchange
  2. Companies intended to list in the current year or the next
  3. Companies which meet the criteria determined based on Enforcement Decree of this Act in terms of the amount of asset, liability, revenue and number of employees, etc.

In the case of the YH (Yuhan Hoesa), separate criteria will be applied.