An amendment on outside auditing

Corporations are required to include all affiliated companies in the consolidated financial statement from this fiscal year if the affiliates are actually under the control of them.

The consolidated financial statement means that a particular company a writes balance sheet and statement of profit and loss including those of the affiliates it controls. Currently, corporations are required to submit the consolidated financial statement of those affiliates that it has over 50% of stocks or owns over 30% stake as a leading shareholder.

The Ministry of Finance & Economy said July 16 that it will submit an amendment on outside auditing to the State Council so that it could implement it from the end of this month.

Also, the amendment stipulates that companies that wish to be listed on the Korea Stock Exchange may not require the separate outside auditing, a necessary procedure for listing, if they have had an audit from an accounting company designated by the Securities Futures Commission in the previous year and submit the relevant audit report.