The Number of Auditor-Designated Companies Decreased by 80 This Year... 607 Companies Newly Designated

FSS Issues Prior Notice of Auditor Designation to 1,498 Companies This Year
665 Periodic Designations, 833 Ex Officio Designations

[Asia Economy Reporter Ji Yeon-jin] The number of companies with designated auditors this year decreased by 80 compared to last year.

The Financial Supervisory Service announced on the 17th that a total of 1,498 companies were pre-notified for auditor designation this year, down by 80 from 1,578 last year. Periodic designations accounted for 665 companies, and discretionary designations for 833 companies.

Periodic designation is a system where companies that have voluntarily appointed auditors for six consecutive years are assigned an accounting firm designated by the government for three years. This year, 229 companies were designated, including 166 listed companies and 63 unlisted companies. Including the 436 companies designated as periodic auditors since 2020, a total of 665 companies received periodic auditor designation.

The average asset size (based on separate financial statements) of listed companies with designated auditors is 2.9 trillion KRW, with the KOSPI market averaging 7.2 trillion KRW. The KOSDAQ market is at about 270 billion KRW. There are 36 companies with total assets exceeding 2 trillion KRW, and 46 companies with assets between 500 billion KRW and 2 trillion KRW. Among the top 100 companies by market capitalization, 15 companies including Hyundai Motor, SK Innovation, and LG are included.

For discretionary designations, 378 companies were newly designated, and 455 companies were continuously designated following last year. Due to financial criteria such as operating losses for three consecutive years, 352 companies were designated auditors, followed by 182 companies scheduled to be listed, and 119 companies under management status.

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