April 25, 2024
Industrials
Foreign firms’ local LLCs to face tougher regulations
[THE INVESTOR] Limited liability companies operating in South Korea could soon be subjected to audit regulations on par with those applied to listed companies.
Related changes were included in the proposed revision to the External Audit of Stock Companies Act approved by the Cabinet on Jan. 3.
The Financial Supervisory Commission plans to submit the revision to the National Assembly within the month.
Under the proposed revision, LLCs such as the local operations of foreign companies including Apple, Gucci and Microsoft will be required to receive external audits. Other regulations such as disclosing financial statements will also be applied to them.
In addition, unlisted stock companies with assets exceeding 500 billion won (US$416.26 million) will be subjected to the same accounting standards as listed companies.
By Choi He-suk (cheesuk@heraldcorp.com)
Related changes were included in the proposed revision to the External Audit of Stock Companies Act approved by the Cabinet on Jan. 3.
The Financial Supervisory Commission plans to submit the revision to the National Assembly within the month.
Under the proposed revision, LLCs such as the local operations of foreign companies including Apple, Gucci and Microsoft will be required to receive external audits. Other regulations such as disclosing financial statements will also be applied to them.
In addition, unlisted stock companies with assets exceeding 500 billion won (US$416.26 million) will be subjected to the same accounting standards as listed companies.
By Choi He-suk (cheesuk@heraldcorp.com)
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