Korean Institute of Certified Public Accountants

In the Republic of Korea, responsibility for the quality assurance review system is shared within the public oversight framework led by the Securities and Futures Commission (SFC) under the Financial Services Commission (FSC), with inspections conducted by the Financial Supervisory Service (FSS) for listed companies and other higher-risk entities and by the Korean Institute of Certified Public Accountants (KICPA) for most non-listed externally audited entities. KICPA operates its Audit Quality Control Review Committee for firms within its delegated scope and links inspection findings to its investigative and disciplinary processes through referrals and recommended sanctions.

KICPA continues to support implementation of quality assurance requirements by compiling and communicating common inspection findings to auditors, issuing guidance on recurring deficiencies identified through reviews, and providing training and continuing professional development programs focused on audit quality and compliance with applicable standards. KICPA also engages with members through seminars, technical publications, and practice support activities aimed at improving audit methodologies and strengthening quality control systems at the firm level.

At the jurisdiction level, the quality assurance framework remains operational and broadly aligned with the requirements of Statement of Membership Obligations 1. However, current evidence indicates that International Standard on Quality Management 1 and International Standard on Quality Management 2 have not yet been adopted and made effective in the jurisdiction, although revision efforts are underway.

KICPA therefore demonstrates active support for the operation of the quality assurance system and member implementation within its delegated responsibilities. However, as jurisdiction-level gaps remain, particularly the absence of adopted and effective quality management standards aligned with the current benchmark, SMO 1 fulfillment is assessed as Review & Improve.

KICPA is encouraged to continue advocating for the adoption and implementation of International Standard on Quality Management 1 and International Standard on Quality Management 2 and to further enhance implementation support for members as these standards are introduced.

Current Status: Review & Improve

In the Republic of Korea, initial professional development and continuing professional development requirements for Certified Public Accountants are established within the statutory framework led by the Financial Services Commission (FSC), with implementation support from the Korean Institute of Certified Public Accountants (KICPA). KICPA continues to support the jurisdiction-level framework by delivering continuing professional development programs across accounting, auditing, taxation, business advisory, information technology, and professional ethics, including substantial online learning provision to improve accessibility for members.

Since the previous assessment, KICPA has continued to strengthen member support through ethics-focused education and implementation tools. IFAC sources report that KICPA requires members to complete eight hours of ethics-related continuing professional development annually and has developed an Ethics Education Toolkit that includes case study videos, sample courses, and other training materials. KICPA also remains engaged in international standard-setting discussions and has continued to support review of the education framework in coordination with national authorities and other stakeholders.

At the regulatory level, the education and qualification framework remains under active review. Earlier reforms to the Certified Public Accountant qualification and apprenticeship system have continued, and in December 2025 the FSC launched a task force to improve CPA selection and training arrangements, indicating that the framework is still evolving. While KICPA demonstrates active support for implementation and ongoing professional development, available evidence does not yet demonstrate full alignment of the jurisdiction-level framework with the latest International Education Standards in effect at the time of the assessment. Accordingly, Statement of Membership Obligations 2 fulfillment is assessed as Execute.

KICPA is encouraged to continue working with the FSC and other stakeholders to advance reforms to the qualification and training framework and to demonstrate fuller alignment with the latest International Education Standards across initial and continuing professional development.

Current Status: Execute

Under the Act on External Audit of Stock Companies, responsibility for auditing standards in the Republic of Korea is shared between the Financial Services Commission (FSC) and the Korean Institute of Certified Public Accountants (KICPA) through the Korean Auditing and Assurance Standards Board. Korean Standards on Auditing continue to be issued following recommendation by the Korean Auditing and Assurance Standards Board and approval by the FSC. Available sources indicate that the standards in force remain based on an earlier International Standards on Auditing baseline, and the latest standards in effect at the time of the assessment have not yet been fully adopted in the jurisdiction.

Within this shared framework, KICPA continues to support implementation by developing training materials, providing continuing professional development and subject-specific seminars, disseminating updates and exposure drafts issued by the International Auditing and Assurance Standards Board, and supplying practice support tools such as sample audit reports and updated audit working paper forms. Recent KICPA materials also indicate continued efforts to reflect revised accounting and auditing requirements in practical tools and guidance for members. KICPA therefore continues to play an active implementation and support role under a shared regulatory model. However, because jurisdiction-level adoption remains below the current benchmark, SMO 3 fulfillment is assessed as Execute.

KICPA is encouraged to continue working with the FSC to accelerate adoption of the latest International Standards on Auditing and to expand implementation support for members as updated standards are introduced.

Current Status: Execute

Under the Certified Public Accountant Act, ethical requirements for Certified Public Accountants in the Republic of Korea are established by the Korean Institute of Certified Public Accountants (KICPA) under the oversight of the Financial Services Commission (FSC). KICPA therefore has direct responsibility for supporting implementation of ethical requirements for its members within a shared statutory framework.

Since the previous assessment, KICPA has continued to support implementation through mandatory ethics-focused continuing professional development, including a requirement for members to complete eight hours of ethics-related continuing professional development annually. KICPA also reports that it has developed an Ethics Education Toolkit with case study videos, sample courses, and other training materials, and that it uses periodic surveys and a Center for Ethics Complaints to monitor ethics-related issues and support compliance.

At the jurisdiction level, Korea’s legal and professional framework continues to reflect alignment with the independence requirements of the 2018 International Code of Ethics for Professional Accountants (including International Independence Standards), but available sources do not demonstrate that the latest Code in effect at the time of the assessment has been fully adopted and made effective. KICPA reports that adoption of the latest Code remains underway.

KICPA continues to demonstrate active implementation support and engagement in this area, including member education and monitoring activities. However, because jurisdiction-level adoption remains below the current benchmark, SMO 4 fulfillment is assessed as Execute.

KICPA is encouraged to continue working with the FSC to reduce the time lag in adopting the latest International Code of Ethics for Professional Accountants (including International Independence Standards) and to maintain strong implementation support as updated requirements are introduced.

Current Status: Execute

Under the National Accounting Act and the Local Accounting Act, responsibility for public sector accounting standards in the Republic of Korea rests with the Ministry of Economy and Finance and the Ministry of the Interior and Safety. The Korean Institute of Certified Public Accountants (KICPA) does not have direct responsibility for establishing public sector accounting standards but continues to play a supporting and advocacy role in this area.

Since the previous assessment, KICPA has continued to promote the use of accrual-based public sector accounting and to advocate for consideration of International Public Sector Accounting Standards through its Public Sector Committee and related research activities. KICPA also supports implementation by disseminating International Public Sector Accounting Standards Board exposure drafts, encouraging member participation in the standard-setting process, and providing thought leadership through publications and outreach initiatives aimed at enhancing transparency and financial reporting in the public sector.

At the jurisdiction level, public sector accounting standards remain based on national frameworks and International Public Sector Accounting Standards have not been adopted. Nevertheless, KICPA continues to demonstrate ongoing engagement and best-endeavor activities to promote convergence and raise awareness of international standards.

Accordingly, Statement of Membership Obligations 5 fulfillment is assessed as Sustain, as KICPA continues to actively support and advocate for the adoption and implementation of international public sector accounting standards despite having no direct standard-setting authority.

Current Status: Sustain

In the Republic of Korea, the investigative and disciplinary system remains established within a shared framework involving the Financial Services Commission (FSC) and the Korean Institute of Certified Public Accountants (KICPA). Under the Certified Public Accountant Act, the FSC retains statutory authority to impose disciplinary sanctions on Certified Public Accountants, while KICPA continues to operate investigation and disciplinary processes at the professional level, including through its Ethics Committee and related bodies.

Since the previous assessment, the jurisdiction-level framework has been further formalized through amendments to the Certified Public Accountant Act and its Enforcement Decree. In particular, the Act was revised in July 2023 to establish the Certified Public Accountants Qualification and Disciplinary Committee under the FSC, and the Enforcement Decree was revised in December 2023 to set procedural requirements, including a 30-day timeframe for disciplinary resolutions, notification requirements, and provisions on public disclosure of disciplinary measures.

Within this framework, KICPA continues to support implementation by linking quality assurance findings to disciplinary processes, administering disciplinary measures for breaches of its rules and ethics requirements, and maintaining channels for complaints and ethics-related reporting. KICPA also continues to make information available to members and the public on complaints and professional conduct matters, including through its ethics complaint mechanisms. IFAC’s current profile for KICPA continues to indicate that the system is aligned with the requirements of SMO 6.

KICPA therefore continues to demonstrate sustained fulfillment of its responsibilities under SMO 6 through ongoing operation, support, and coordination within a comprehensive jurisdiction-level system. Accordingly, SMO 6 fulfillment is assessed as Sustain.

Current Status: Sustain

Under the Act on External Audit of Stock Companies, accounting standards in the Republic of Korea are established by the Korean Accounting Standards Board (KASB), which issues Korea International Financial Reporting Standards (K-IFRS) in line with International Financial Reporting Standards (IFRS Accounting Standards) as issued. The Korean Institute of Certified Public Accountants (KICPA) does not have direct responsibility for adoption but plays an active supporting role in implementation and standard-setting engagement.

Since the previous assessment, KICPA has continued to support members through continuing professional development programs, seminars, and technical guidance related to K-IFRS and IFRS Accounting Standards. KICPA also participates in the standard-setting process by reviewing and providing comments on exposure drafts issued by KASB and the International Accounting Standards Board, and by disseminating updates and developments to members.

KICPA therefore continues to demonstrate sustained support for implementation through education, technical input, and engagement with stakeholders within a jurisdiction where IFRS Accounting Standards are adopted. Accordingly, SMO 7 fulfillment is assessed as Sustain.

Current Status: Sustain