Big 4 or Mid-Sized Firm Background... Intensifying Election for Accounting Society President

Elections at Regular General Meeting on 17th Next Month
Kim Young-sik and Choi Jong-man Likely to Face Off

Electronic Voting and Candidate Chae Yi-bae
Small Businesses and Young Voters as Key Variables

[Asia Economy Reporter Park Jihwan] The upcoming election for the next president of the Korean Institute of Certified Public Accountants (KICPA), scheduled for June, is expected to be a showdown between the Big 4 accounting firms and small-to-medium-sized accounting firms. There is also a significant possibility that the contest will expand into a generational battle between the established vested interests and younger members. This election will be the first to introduce electronic voting due to the impact of the COVID-19 pandemic, drawing attention to how this might affect the results.

According to the accounting industry on the 4th, the candidates for the KICPA president election next month include Kim Young-sik, Chairman of Samil Accounting Corporation; Jung Min-geun, Vice Chairman of Deloitte Anjin (also Vice Chairman of KICPA); Choi Jong-man, CEO of Shinhan Accounting Corporation (also Vice Chairman of KICPA); Hwang In-tae, Professor of Business Administration at Chung-Ang University; Lee Man-woo, Professor of Business Administration at Korea University; and Chae Yi-bae, member of the Minsheng Party.

The most likely scenario is a frame battle based on scale and background between the 'Big 4' and 'small-to-medium firms.' It is a contest between Kim, the chairman from the Big 4, Vice Chairman Jung, and CEO Choi, who previously served as chairman of the mid-sized accounting firms' council. Within the industry, it is widely expected that the election will be a two-way race between Kim, who has the influence and recognition from leading the largest accounting firm, and Choi, who will represent the voices of the smaller firms. In this two-way race, Kim is evaluated to be ahead in various aspects.

Historically, candidates from the Big 4 have shown strong performance in elections. Due to the in-person voting method, voter turnout was around 30%, and the Big 4’s mobilization power, representing more than 25% of the approximately 20,000 KICPA members, largely determined the outcome.

However, since this election will be conducted via electronic voting, a significant increase in voter turnout is expected to be the biggest variable. Predictions suggest that turnout could more than double compared to previous elections. Higher participation is anticipated from accountants belonging to small and medium firms who previously found it difficult to come to polling stations, self-employed accountants, and younger accountants who were not actively engaged in voting.

An industry insider said, "If the election were conducted by the traditional voting method, the victory of a Big 4 candidate could be easily predicted, but this election is difficult to forecast. The results could change depending on how the votes from small and medium firms consolidate." Furthermore, if Kim from Samil and Jung from Anjin both run simultaneously, the Big 4 votes could be split, which might work to the advantage of CEO Choi, who represents the interests of smaller firms.

The candidacy of Representative Chae is also a major variable. It is reported that Chae enjoys strong support from younger accountants. As an accountant himself, Representative Chae played a significant role in accounting reforms such as the introduction of the new external audit law during the 20th National Assembly. An industry insider noted, "The KICPA membership has become significantly younger compared to the past, and even the average age of accountants in Big 4 firms is mostly in their early to mid-30s. Previously, younger members viewed the KICPA elections as a playground for vested interests and showed little interest, but perceptions have changed considerably recently, so this election could proceed as a contest between vested interests and the younger generation."

Academics running for the position appear to have relatively low chances of winning. While they may have strengths in pushing for innovative institutional reforms, their lack of a solid support base compared to other candidates is seen as a weakness.

To avoid unnecessary overheating of the election, the deposit for candidacy has been raised from 10 million won to 50 million won, and the president’s annual salary has been reduced from 300 million won to 50 million won. Candidate registration will take place from the 18th to the 22nd of this month, with election campaigning starting simultaneously. The president will be elected at the regular general meeting scheduled for June 17.

This content was produced with the assistance of AI translation services.