Full-Time Auditor Appointment Mandatory for Saemaul Geumgo Branches with Assets Over 800 Billion Won

Stronger Internal Controls for Large Saemaul Geumgo Branches
Annual External Audits Required for Branches with Over 300 Billion Won in Assets
Full-Time Auditors Now Mandatory for Largest Branches

Large-scale Saemaul Geumgo branches will now be required to appoint a full-time auditor in order to strengthen internal controls. In addition, they will be subject to annual accounting audits by external auditors, rather than the current biennial audits, to improve financial soundness.

The Ministry of the Interior and Safety announced on June 19 that it had approved a partial amendment to the Enforcement Decree of the Saemaul Geumgo Act containing these measures at a Cabinet meeting. The amended Enforcement Decree will take effect on July 8.

Previously, the Saemaul Geumgo Act was amended to strengthen oversight and supervision in response to the large-scale withdrawals from Saemaul Geumgo branches in 2023. This revision of the Enforcement Decree is a follow-up measure to further refine the system in line with the amended law.

First, Saemaul Geumgo branches with assets of 800 billion won or more will now be required to appoint a full-time auditor. While branches with assets of 50 billion won or more can continue to have full-time executives (directors or auditors) as before, those with assets of 800 billion won or more must now appoint a full-time auditor.

Branches with assets of 300 billion won or more are now required to undergo annual external accounting audits. Currently, branches with assets of 50 billion won or more are subject to biennial external audits through administrative guidance, but from now on, those with assets of 300 billion won or more must undergo external accounting audits every year. The aim is to enhance accounting transparency and financial soundness.

Additionally, the effectiveness of disciplinary measures against employees has been strengthened. For executives such as general managers and managing directors who have substantial operational responsibility, supervisory authorities are now empowered to directly impose disciplinary actions. For other employees, only requests for disciplinary action can be made. The legal basis for establishing a 'Disciplinary Review Committee' within the Ministry of the Interior and Safety has also been created, further strengthening the protection of the rights and interests of those subject to disciplinary action.

Han Soonki, Director General of Local Finance and Economy at the Ministry of the Interior and Safety, stated, "With this amendment to the Enforcement Decree, management innovation at Saemaul Geumgo has now entered full swing," and added, "We will continue to improve institutional frameworks and supervisory systems going forward."

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