For Greater Accounting Transparency in Local Government Outsourced Projects... Korean Institute of Certified Public Accountants Holds Legislative Forum

Co-hosted with the National Vision 2050 Forum of Assembly Members

The Korean Institute of Certified Public Accountants and members of the National Assembly discussed ways to establish systems to enhance accounting transparency and fiscal responsibility in privately entrusted projects by local governments.

On July 7, the Korean Institute of Certified Public Accountants announced that, in cooperation with the National Assembly research group "National Vision 2050 Forum" (led by Assemblywoman Park Sumin), it held a legislative discussion on "Strengthening Accounting Oversight of Local Government Outsourced Projects" at the National Assembly Members’ Office Building the previous day.

During the opening remarks, Park Sumin, head of the National Vision 2050 Forum, stressed, "To prevent recurring accounting fraud in privately entrusted projects, it is essential to establish an accounting oversight system that is both professional and independent."

Kim Beomjoon, a professor at the Catholic University who delivered the keynote presentation, pointed out, "The importance of accounting in non-profit organizations and the public sector is growing," and suggested, "A professional accounting verification system is needed to supervise and manage the outsourcing projects and subsidy execution by local governments."

He particularly highlighted, through cases of misappropriation of private outsourcing funds, that merely reviewing documents is insufficient for controlling fiscal execution. He called for the introduction of an independent and professional external audit system as a solution to address information asymmetry and agency problems among local governments, entrusted organizations, and taxpayers.

The comprehensive panel discussion that followed was chaired by Jeong Seokwoo, head of the Korea Investors Forum. The panel included Heo Seungwon, Director of the Autonomous Decentralization System Division at the Ministry of the Interior and Safety; Park Seongjin, President of the Korean Government Accounting Association; Kim Sangno, Partner at Hangil Accounting Corporation; and Choi Gwangseon, Professor at Konkuk University Law School.

Choi Unyeol, President of the Korean Institute of Certified Public Accountants, remarked in his congratulatory address, "Although more than 14 trillion won in public funds are being invested in privately commissioned projects, the lack of mandatory accounting audits has resulted in inadequate oversight." He emphasized, "It is necessary to establish a consistent verification system to strengthen transparency and accountability in fiscal management."

Provided by the Korean Institute of Certified Public Accountants

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