Korea, South
Financial Reporting Obligations for Companies in South Korea
1. Registry for Financial Statement Submission
In South Korea, companies must submit their financial statements to the Korea Corporate Information Disclosure System (DART, 전자공시시스템), managed by the Financial Supervisory Service (FSS). Online services are available via DART ( https://dart.fss.or.kr ) and the FSS website ( https://www.fss.or.kr ).
2. Legal Forms Required to Publish Financial Statements
The following legal forms in South Korea are required to submit and publish their financial statements:
- 주식회사 (Jusik Hoesa – Joint-stock company)
- 유한회사 (Yuhan Hoesa – Limited liability company)
- 합자회사 (Hapja Hoesa – Limited partnership company)
- 합명회사 (Hapmyeong Hoesa – General partnership company)
- 유한책임회사 (Yuhan Chaekim Hoesa – Limited liability partnership)
- 외국인투자기업 (Foreign-invested enterprise)
- 지점 (Branch of a foreign company)
- 사단법인 (Incorporated association)
- 재단법인 (Incorporated foundation)
- 공기업 (State-owned enterprise)
- 사회적 기업 (Social enterprise)
Legal forms generally not obliged include sole proprietorships (개인사업자) unless they incorporate into one of the above forms or exceed specific statutory triggers.
3. Audit Requirements for Financial Statements
The obligation to audit depends on legal form and size thresholds (total assets, total revenue, number of employees). The table below summarizes the requirements:
|
Legal Form |
Rule |
Criteria |
|
주식회사 (Jusik Hoesa) |
Audit required if 2 of 3 are exceeded |
Total assets ≥ KRW 12,000,000,000 |
| 유한회사 (Yuhan Hoesa) | Conditional audit based on size | Same thresholds as above |
| 합자회사 (Hapja Hoesa) | Conditional audit based on size | Same thresholds as above |
| 합명회사 (Hapmyeong Hoesa) | Conditional audit based on size | Same thresholds as above |
| 유한책임회사 (Yuhan Chaekim Hoesa) | Conditional audit based on size | Same thresholds as above |
| 외국인투자기업 (Foreign-invested enterprise) | Audit required based on size | Same thresholds as above |
| 지점 (Branch of a foreign company) | Audit required if size thresholds are exceeded | Same thresholds as above |
4. Stock Exchange Listing and Reporting Requirements
Companies listed on the Korea Exchange (KRX) must publish their financial statements there ( https://global.krx.co.kr ).
5. Deadlines for Submission of Financial Statements
The typical deadline for submitting annual financial statements is:
- Within three months of the fiscal year-end for most entities.
- Public companies generally within 90 days of year-end.
6. Partial Financial Statements Submission
Certain smaller entities (e.g., LLCs below the audit thresholds) may submit condensed or partial statements, often simplified for tax purposes.
7. Consequences of Late Submission
Failure to submit on time may result in fines (commonly KRW 5,000,000–50,000,000), possible restrictions on certain business activities, and in extreme cases administrative removal from the register for persistent non-compliance.
8. Foreign-owned Branches and Newly Established Companies
Foreign-owned branches must follow the same rules as domestic entities. Newly established companies submit their first financial statements within three months after the end of their first fiscal year.
Sources
|
Source |
Link |
|
DART – Korea Corporate Information Disclosure System |
|
|
Financial Supervisory Service (FSS) |
|
|
Korea Exchange (KRX) |
| Start Companies Search | Order Credit Report |
Keywords
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