Eun Sung-soo: "To Succeed in Accounting Reform, Companies, Industries, and Government Must Collaborate and Narrow Gaps"

The 3rd Accounting Day Event

[Asia Economy Reporter Minji Lee] "As we have pursued intensive accounting reforms over the past three years, accounting reform can succeed only when companies, the accounting industry, the National Assembly, and the government actively come together to narrow the gaps."

On the 30th, Eun Sung-soo, Chairman of the Financial Services Commission, made these remarks at the 3rd Accounting Day event held at the Four Seasons Hotel. Chairman Eun explained that more time is needed for the success of accounting reform, stating, "Reform is completed only when it is fully accepted on the ground."

The accounting industry introduced systems for accounting reform, such as the periodic designation system for auditors of listed companies, by revising the External Audit Act and its subordinate statutes in October 2017. Subsequently, efforts were made to improve sanction procedures, including allowing the double trial system, while simultaneously promoting innovations in enforcement and supervision methods.

On this day, Chairman Eun expressed empathy for the difficulties companies face due to the implementation of accounting reform. He said, "The government has established and operates a constant communication system with the market, such as the 'Accounting Reform Settlement Support Group,' to listen to the voices from the field and actively respond to support the market settlement of the reform."

He added, "To ensure a smooth landing of the system by alleviating the burdens on reform participants, improvement measures such as 'allowing downward re-designation in the auditor designation system,' 'implementing measures to ease conflicts between previous and current auditors,' and 'deleting reasons for ex officio designation in the enforcement decree' have been implemented," emphasizing, "We will continue to actively listen to difficulties and work on problem-solving."

He also urged the accounting industry to first understand and resolve the difficulties faced by companies. Furthermore, Chairman Eun stated, "Certified public accountants must have social responsibility and ethical awareness," and added, "I hope the industry itself will show efforts to resolve issues such as excessive fees."

Chairman Eun emphasized that with the success of accounting reform, the transparency and reliability of corporate accounting will improve, leading to an increase in corporate value and ultimately connecting to a new leap forward in the economy. He said, "As seen in the case of K-quarantine, transparency directly leads to trust, and when trust is the foundation, communication and development are possible," and revealed, "In the international organization (IMD) national competitiveness evaluation announced last June, the accounting sector rose 15 ranks, marking the highest ranking in the past 10 years."

Meanwhile, the event was hosted by the Korea Chamber of Commerce and Industry and the Korean Institute of Certified Public Accountants, with attendees including Yoon Kwan-seok, Chairman of the Political Affairs Committee, and Choi Jun-woo, member of the Securities and Futures Commission. Government awards were also presented to seven individuals who contributed to the development of accounting during the event.

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