JIPYONG LLC

Accounting regulation and oversight in Korea have become increasingly stringent since the comprehensive revision of the Act on External Audit of Stock Companies, Etc.  The revised framework introduced stricter requirements for investigating director misconduct, tougher sanctions for accounting fraud, and greater liability for damages on the part of auditors.  It also introduced periodic auditor designation for listed companies and certain other entities, as well as mandatory audits of internal accounting control systems.  These changes have imposed stricter accounting-related duties and responsibilities on company directors, statutory auditors, and external auditors.  Financial regulators continue to pursue reforms to accounting oversight, supervision, and sanctions to improve accounting transparency, increasing the need for companies to address accounting risks proactively.  Against this backdrop, and with the growing use of AI in the financial sector, Jipyong established the AI Accounting Supervision & Response Center to help clients anticipate and respond to these changes.

The Center provides comprehensive advice on accounting supervision, delisting, and related legal issues, including complex regulatory issues involving civil, criminal, and administrative litigation.  It also works with other practice groups and specialized centers as needed.  Together with the Finance Group and Continued Listing Advisory Center, it advises clients on responding to accounting supervision by the Financial Supervisory Service (FSS) and substantive reviews of listed companies’ eligibility for continued listing.  It also works with the Corporate & Financial Disputes Group and Criminal Defense Group to represent clients in civil, criminal, and administrative litigation involving accounting fraud.  Through these combined efforts, the Center seeks to protect its clients’ interests.

The Center brings together attorneys, certified public accountants, and specialist advisors to provide comprehensive, in-depth advice.  Key members include Senior Advisor Seok Dong KIM, former Chairman of the Financial Services Commission, and Center Head Soonchul PARK, a former member of the Financial Services Commission’s Accounting Review Committee and former Chief Prosecutor of the Seoul Southern District Prosecutors’ Office, which specializes in financial and accounting crimes.  The team also includes Senior Advisor Myung Chul KIM, formerly of the FSS, as well as Attorney Hee Jung SHIM and CPA Sang Su KU, both of whom have expertise in finance and accounting.