Advanced Search

Enforcement Decree Of The Certified Public Accountant Act


Published: 2013-08-27

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$40 per month.
CHAPTER I GENERAL PROVISIONS
law view
 Article 1 (Purpose)   print
The purpose of this Decree is to provide for the matters delegated by the Certified Public Accountant Act and the matters necessary for the enforcement thereof. <Amended by Presidential Decree No. 19374, Mar. 10, 2006>
CHAPTER II EXAMINATIONS
law view
 Article 2 (Subjects, Method, etc. of Certified Public Accountants Examination)   print
(1) Subjects and distribution of marks by subjects of the certified public accountants examination (hereinafter referred to as the "examination") provided for in Article 5 (2) of the Certified Public Accountant Act (hereinafter referred to as the "Act") shall be as set out in attached Tables 1 and 2. <Amended by Presidential Decree No. 18352, Apr. 1, 2004; Presidential Decree No. 19374, Mar. 10, 2006>
(2) While the preliminary examination shall be a multiple-choice test, the secondary examination shall be an essay test.
(3) English subject among those of the preliminary examination as referred to in paragraph (1) shall be substituted by the record of an English test conducted by another examination agency (hereinafter referred to as the "English test") on or after the 1st of January of the year whereto belongs the date when two years have passed retroactively from the announcement date of the examination. <Amended by Presidential Decree No. 18352, Apr. 1, 2004>
(4) Types and qualifying marks of the English test as referred to in paragraph (3) shall be as shown in the attached Table 3, and any person who intends to apply for the examination shall submit the record of the English test issued by another examination agency, along with a written application as prescribed by Ordinance of the Prime Minister. <Newly Inserted by Presidential Decree No. 18352, Apr. 1, 2004; Presidential Decree No. 19374, Mar. 10, 2006; Presidential Decree No. 20653, Feb. 29, 2008>
law view
 Article 2-2 (Qualifications for Taking Examination)   print
(1) The kinds of subjects (hereinafter referred to as "regular subjects" in this Article ) and the number of credits as provided for in Article 5 (4) of the Act shall be as follows:
1. Accounting and tax-related subjects: 12 credits;
2. Business administration: 9 credits; and
3. Economics: 3 credits.
(2) In the case of completing the required course at schools under Article 5 (3) 1 of the Act, the standards for recognizing credits under paragraph (4) of the said Article shall follow the school regulations and in other cases, the Act on Recognition of Credits, etc. or the Act on the Acquisition of Academic Degrees through Self-Education: Provided, That the examination board as referred to in Article 6 may, subject to its deliberation, recognize the credits of a subject not set as a major of a degree course for the relevant regular subject if the contents of the subject are related to the field of the relevant regular subject, or may decide not to recognize the credits of a subject set as a major of a degree course for the relevant regular subject if it is evident that the contents of the subject are not related to the field of the relevant regular subject. <Amended by Presidential Decree No. 19374, Mar. 10, 2006>
(3) Qualifications for taking examination under Article 5 (4) of the Act shall be proved by a certificate of acquiring credits of the regular subjects issued by the head of a school or credit-recognition agency from which the credits are earned: Provided, That if a certificate of acquiring credits of the regular subjects can not be submitted for any inevitable grounds, the examination board as referred to in Article 6 may allow its substitution by the certificate of records of the regular subjects, subject to its deliberation.
(4) Anyone who intends to apply for the examination shall submit the certificate as referred to in paragraph (3) along with a written application as prescribed by Ordinance of the Prime Minister. <Amended by Presidential Decree No. 19374, Mar. 10, 2006; Presidential Decree No. 20653, Feb. 29, 2008>
(5) Persons entitled to take the secondary examination shall be limited to those who pass or are exempt from the preliminary examination.
[This Article Newly Inserted by Presidential Decree No. 18352, Apr. 1, 2004]
law view
 Article 3 (Determination of Successful Candidates)   print
(1) Candidates passing in the preliminary examination shall be determined in the order of scored marks out of the aggregate marks in all subjects in consideration of the results of examination and number of candidates from among those who score not less than 40 marks out of 100 in each subject and an average of not less than 60 marks in all subjects, excluding English subject. <Amended by Presidential Decree No. 18352, Apr. 1, 2004>
(2) Candidates passing in the secondary examination shall be those who score not less than 60 marks out of 100 in each and every subject: Provided, That where those who score not less than 60 marks out of 100 in each and every subject fall short of the estimated minimum number of candidates to be selected which is announced by the Financial Services Commission at the time of the announcement of the examination, deeming it necessary for supply and demand of certified public accountants, the shortage may be filled in the order of scored marks out of the aggregate marks in all subjects, not exceeding the publicized estimated minimum number of candidates to be selected, from among those who score not less than 40 marks out of 100 in each and every subject. <Amended by Presidential Decree No. 18352, Apr. 1, 2004; Presidential Decree No. 20653, Feb. 29, 2008>
(3) Where a candidate who passed the preliminary examination has scored not less than 60 marks out of 100 in each subject of the secondary examination executed in the year of the preliminary examination, he shall be exempt from the examination of such subject in the next secondary examination only once. <Amended by Presidential Decree No. 19374, Mar. 10, 2006>
(4) In determining successful candidates under the proviso of paragraph (2), their aggregate marks shall be calculated by applying the marks scored in the immediately preceding secondary examination with respect to the subjects exempt from the secondary examination pursuant to paragraph (3) and if, in spite of the provisions of paragraph (3), they have again attempted the examination of the subjects subject to the exemption, by applying the marks obtained by it; and although the number of successful candidates is expected to exceed the estimated number of candidates to be selected, due to candidates who score the same marks, successful candidates shall include those who score the same marks. In this case, their marks shall be calculated down to the secondary decimal place. <Newly Inserted by Presidential Decree No. 18352, Apr. 1, 2004>
law view
 Article 4 (Those Who are Exempt from Preliminary Examination)   print
(1) "Organizations prescribed by Presidential Decree" in Article 6 (1) 3 of the Act means any of the following organizations: <Amended by Presidential Decree No. 17238, Jun. 18, 2001; Presidential Decree No. 18352, Apr. 1, 2004; Presidential Decree No. 19374, Mar. 10, 2006; Presidential Decree No. 20947, Jul. 9, 2008; Presidential Decree No. 24697, Aug. 27, 2013>
1. An institution in which the Government invests in accordance with the Framework Act on the Management of Government-Invested Institutions (hereinafter referred to as a "government-invested institution");
2. A stock-listed corporation at the securities market under Article 176-9 (1) of the Enforcement Decree of the Financial Investment Services and Capital Markets Act (hereinafter referred to as a "stock-listed corporation at the securities market"); and
3. The Credit Guarantee Fund under the Credit Guarantee Fund Act and the Korea Technology Credit Guarantee Fund under the Korea Technology Credit Guarantee Fund Act (hereinafter referred to as the "guarantee agency").
(2) "Particular level determined by Presidential Decree" in Article 6 (1) 3 of the Act means any level of the following subparagraphs: <Amended by Presidential Decree No. 15748, Apr. 1, 1998; Presidential Decree No. 17238, Jun. 18, 2001; Presidential Decree No. 18352, Apr. 1, 2004; Presidential Decree No. 19374, Mar. 10, 2006; Presidential Decree No. 20947, Jul. 9, 2008; Presidential Decree No. 22493, Nov. 15, 2010>
1. A deputy, in case of a bank under Article 2 of the Banking Act, a government-invested institution, or a guarantee agency;
2. The head of section or equivalent thereto, in case of a stock-listed corporation at the securities market.
(3) "Fields relating to accounting" in Article 6 (1) 3 of the Act means the field whose main work is to prepare financial statements.
(4) "Person as prescribed by Presidential Decree" in Article 6 (1) 5 of the Act means a person, holding the office of deputy or higher at the Financial Supervisory Service established under the Act on the Establishment, etc. of Financial Services Commission (hereinafter referred to as the "Financial Supervisory Service"), with experiences in any of the following services for the period of not less than five years: <Amended by Presidential Decree No. 15748, Apr. 1, 1998; Presidential Decree No. 17238, Jun. 18, 2001; Presidential Decree No. 19374, Mar. 10, 2006; Presidential Decree No. 20653, Feb. 29, 2008; Presidential Decree No. 20947, Jul. 9, 2008>
1. Services relating to external audits under the Act on External Audit of Stock Companies;
2. Services relating to finance management of a stock-listed corporation under the Capital Market and Financial Investment Business Act (hereinafter referred to as the "registered corporation").
(5) In computing the period of services in such fields as specified in each subparagraph of Article 6 (1) of the Act, for a person who has experience in the field concerned at two institutions or more, the periods of services in each institution shall be aggregated.
law view
 Article 5 (Administration and Public Notice of Examination)   print
(1) The examination shall be held at least once every year.
(2) The Financial Services Commission shall give public notice with regard to the contents of the following subparagraphs in daily newspapers, etc. not later than 90 days prior to the date of examination: Provided, That if changes in public notice are necessary for unavoidable causes, the public notice with regard to such changes shall be given in daily newspapers, etc. not later than 10 days prior to the date of examination: <Amended by Presidential Decree No. 15748, Apr. 1, 1998; Presidential Decree No. 20653, Feb. 29, 2008; Presidential Decree No. 23759, May 1, 2012>
1. Qualifications for taking the examination;
2. Method, date and time of the examination;
3. Subjects of the examination;
4. Date and time and method of notification of successful candidates;
5. Places where application forms for examination are available and received, and time-limit of application for examination;
6. Other necessary matters relating to administration of the examination.
law view
 Article 6 (Examination Board)   print
(1) The examination board shall be established in the Financial Services Commission for the administration of the examination (hereafter referred to in this Article as "examination board"). <Amended by Presidential Decree No. 15748, Apr. 1, 1998; Presidential Decree No. 16846, Jun. 23, 2000; Presidential Decree No. 20653, Feb. 29, 2008>
(2) The examination board shall be composed of a Chairperson, examiners whom the chairman appoints or designates, at each occasion, from among those who have vast knowledge and practical experience in each subject of examination. <Amended by Presidential Decree No. 16846, Jun. 23, 2000>
(3) The Governor of the Financial Supervisory Service (hereinafter referred to as the "Governor of the Financial Supervisory Service") shall be the Chairperson. <Amended by Presidential Decree No. 15748, Apr. 1, 1998>
(4) The examination board shall deliberate the following subparagraphs: <Amended by Presidential Decree No. 15748, Apr. 1, 1998; Presidential Decree No. 16846, Jun. 23, 2000; Presidential Decree No. 20653, Feb. 29, 2008>
1. Matters relating to eligibility to attempt the examination;
2. Matters relating to setting questions for the examination;
3. Matters relating to method of the examination;
4. Matters relating to the determination of successful candidates;
5. Other matters referred to by the Chairperson of the Financial Services Commission or the Chairperson.
(5) The Chairperson shall exercise powers over general matters of the examination board, represent it, call and preside over its meetings. <Amended by Presidential Decree No. 16846, Jun. 23, 2000>
(6) Where the Chairperson is incapable of carrying out his functions due to unavoidable causes, an examiner designated by the Chairperson shall act for him: Provided, That if the Chairperson can not designate his substitute because of the occurrences of unavoidable causes, an examiner designated by the Chairperson of the Financial Services Commission shall act for the Chairperson. <Amended by Presidential Decree No. 15748, Apr. 1, 1998; Presidential Decree No. 20653, Feb. 29, 2008>
(7) Any decision at meetings of the examination board shall be made with the attendance of a majority of all members and with concurrent vote of a majority of those present. <Amended by Presidential Decree No. 16846, Jun. 23, 2000>
(8) Matters necessary for the operation of the examination board other than those provided for in paragraphs (1) through (7) shall be deter mined by the Chairman through resolutions of the examination board. <Amended by Presidential Decree No. 16846, Jun. 23, 2000>
law view
 Article 7 (Fees for Attempting Examination)   print
(1) A person who intends to attempt the examination shall pay the Financial Supervisory Service the amount set out in Ordinance of the Prime Minister as fees in cash or by means of electronic currency, electronic settlement, etc. using information and communications networks: Provided, That the Financial Services Commission may allow him to pay such fees by means of electronic currency, electronic settlement, etc. using information and communications networks. <Amended by Presidential Decree No. 15748, Apr. 1, 1998; Presidential Decree No. 16846, Jun. 23, 2000; Presidential Decree No. 18312, Mar. 17, 2004; Presidential Decree No. 18352, Apr. 1, 2004; Presidential Decree No. 20653, Feb. 29, 2008>
(2) Except for cases falling under any of the following subparagraphs, no fee referred to in paragraph (1) shall be refunded. In such cases, an amount paid in excess or in error, an amount paid in full, and an amount equivalent to 50/100 of a fee paid shall be returned in cases of subparagraph 1, subparagraphs 2 and 3, and subparagraph 4, respectively: <Amended by Presidential Decree No. 22717, Mar. 22, 2011>
1. Where a fee is paid in excess or in error;
2. Where an examinee fails to apply to an examination due to a cause attributable to the examination agency;
3. Where an application is cancelled during the period for application;
4. Where an application is cancelled during the period from the date following the deadline for application to the date preceding the date of examination.
law view
 Article 8 (Public Notice of Successful Candidates and Delivery of Passing Certificates)   print
The Financial Services Commission, where successful candidates are determined, shall give public notice thereon in the Gazette and deliver passing certificates to candidates who pass the secondary examination. <Amended by Presidential Decree No. 15748, Apr. 1, 1998; Presidential Decree No. 20653, Feb. 29, 2008>
law view
 Article 9 (Sanctions against Cheating)   print
Where a candidate cheats in the examination or contravenes rules and regulations relating to the examination, the Financial Services Commission shall stop his taking the examination concerned or have it null and void, and take measures to suspend his eligibility for attempting the examination for a period of five years from the date on which such measures are taken. <Amended by Presidential Decree No. 15748, Apr. 1, 1998; Presidential Decree No. 20653, Feb. 29, 2008>
law view
 Article 9-2 (Certified Public Accountant Qualification System Deliberation Committee)   print
(1) The Certified Public Accountant Qualification System Deliberation Committee (hereafter referred to in this Article as the "System Deliberation Committee") under Article 6-2 of the Act shall be composed of seven members including a Chairperson.
(2) The Vice-Chairperson of the Financial Services Commission shall be the Chairperson of the System Deliberation Committee (hereinafter referred to in this Article as the "Chairperson"), and its members shall be commissioned by the Financial Services Commission from among the following persons: <Amended by Presidential Decree No. 19374, Mar. 10, 2006; Presidential Decree No. 19513, Jun. 12, 2006; Presidential Decree No. 20653, Feb. 29, 2008>
1. Two persons from among the public officials of Grade III or public officials in general service belonging to the Senior Civil Service of the Financial Services Commission;
2. Deleted; <by Presidential Decree No. 20653, Feb. 29, 2008>
3. One person recommended by the president of the Korean Institute of Certified Public Accountants (hereinafter referred to as the "Institute of Certified Public Accountants") under Article 41 of the Act;
4. One person recommended by the head of a corporation or organization which is entrusted by the Financial Services Commission with the business of setting or amendment of accounting standards under Article 13 (4) of the Act on External Audit of Stock Companies and Article 7-2 of the Enforcement Decree of the same Act;
5. One person recommended by a citizens' organization (referring to a nonprofit non-governmental organization under Article 2 of the Assistance for Nonprofit, Non-Governmental Organizations Act);
6. One civil expert having abundant knowledge and experience in accounting system.
(3) The Chairperson shall represent the System Deliberation Committee, exercise the overall control of its affairs, and call and preside over its meeting.
(4) If the Chairperson is unable to perform his duties due to inevitable reasons, a member designated by the Chairperson shall act for the Chairperson.
(5) A meeting of the System Deliberation Committee shall take decision with the attendance of a majority of the total members and with concurrent vote of a majority of those present.
(6) The terms of office for members referred to in paragraph (2) 3 through 6 shall be three years and renewable.
(7) Other than the matters as provided in paragraphs (1) through (6), matters necessary for the operation, etc. of the System Deliberation Committee shall be determined by the Chairperson subject to a resolution by the System Deliberation Committee.
[This Article Newly Inserted by Presidential Decree No. 16846, Jun. 23, 2000]
CHAPTER III TRAINING, REGISTRATION, ETC.
law view
 Article 10 (Registration)   print
(1) A person who wishes to get registered as a certified public accountant in accordance with Article 7 (1) of the Act shall submit to the Financial Services Commission a registration form accompanied with a copy of a certificate under Article 8: <Amended by Presidential Decree No. 15748, Apr. 1, 1998; Presidential Decree No. 20653, Feb. 29, 2008; Presidential Decree No. 23884, Jun. 27, 2012>
(2) Where the Financial Services Commission receives an application for registration prescribed in paragraph (1), it shall have the applicant registered on certified public accountants register without delay and deliver the registration certificate to the applicant. <Amended by Presidential Decree No. 15748, Apr. 1, 1998; Presidential Decree No. 20653, Feb. 29, 2008>
(3) A person who has been registered as a certified public accountant, where there are changes in registered matters, shall file forthwith a report on such changes with the Financial Services Commission. <Amended by Presidential Decree No. 15748, Apr. 1, 1998; Presidential Decree No. 20653, Feb. 29, 2008>
law view
 Article 11 (Renewal of Registration)   print
(1) Pursuant to Article 7 (4) of the Act, a person who has been registered as a certified public accountant shall have his registration renewed every five years. <Amended by Presidential Decree No. 19374, Mar. 10, 2006>
(2) A person who wishes to get his registration renewed under para graph (1), shall submit an application form for the renewal of registration of a certified public accountant to the Financial Services Commission not later than 30 days prior to the date on which five years have elapsed from the date of registration. <Amended by Presidential Decree No. 15748, Apr. 1, 1998; Presidential Decree No. 20653, Feb. 29, 2008>
(3) The Financial Services Commission shall notify a person who has registered as a certified public accountant, in advance, of the fact that when he/she intends to renew registration, he/she shall apply for renewal thereof up to 30 days before the registration's effective period expires and of the renewal procedure under paragraph (2) up to 60 days before the registration's effective period expires, using a text message of a cellular phone, e-mail, fax, telephone, etc. <Newly Inserted by Presidential Decree No. 23884, Jun. 27, 2012>
law view
 Article 12 (In-service Training)   print
(1) Pursuant to Article 7 (1) of the Act, in-service training shall be administered by any of the following institutions for one year or more: <Amended by Presidential Decree No. 15748, Apr. 1, 1998; Presidential Decree No. 16846, Jun. 23, 2000; Presidential Decree No. 17238, Jun. 18, 2001; Presidential Decree No. 18352, Apr. 1, 2004; Presidential Decree No. 19374, Mar. 10, 2006; Presidential Decree No. 20653, Feb. 29, 2008; Presidential Decree No. 20947, Jul. 9, 2008; Presidential Decree No. 21969, Dec. 31, 2009>
1. An accounting corporation;
1-2. An audit team under Article 3 (1) 2 of the Act on External Audit of Stock Companies;
2. The Institute of Certified Public Accountants;
3. The Financial Supervisory Service (limited to a division or section taking charge of services relating to external auditing under the Act on External Audit of Stock Companies, or general functions of finance management of stock-listed corporations);
4. Other institutions determined by the Financial Services Commission, through recommendation by the Institute of Certified Public Accountants.
(2) Deleted. <by Presidential Decree No. 18352, Apr. 1, 2004>
(3) In computing the period of in-service training under paragraph (1) which a person who has completed at two institutions or more (including the course of training under paragraph (5)), the periods of in-service training at each such institution shall be aggregated. <Amended by Presidential Decree No. 18352, Apr. 1, 2004>
(4) The Institute of Certified Public Accountants shall have responsibility to administer the matters relating to in-service training and determine the details, methods, and procedures of in-service training, the aggregate computation of in-service training periods, and other necessary matters with approval from the Financial Services Commission. <Amended by Presidential Decree No. 18352, Apr. 1, 2004; Presidential Decree No. 20653, Feb. 29, 2008>
(5) The Institute of Certified Public Accountants may establish a separate course of in-service training for the persons who fail to receive in-service training at the establishments as referred to in paragraph (1), and in that case, the Financial Services Commission may provide a financial support for the expenses, etc. required for operating such course of in-service training, in accordance with Article 7 (2) of the Act. <Amended by Presidential Decree No. 18352, Apr. 1, 2004; Presidential Decree No. 20653, Feb. 29, 2008>
law view
 Article 13 (Coverage of Liability for Compensation)   print
(1) A certified public accountant (excluding certified public accountants belonging to accounting corporations; hereafter the same shall apply in this Article) who has registered pursuant to Article 7 of the Act shall, where he has made a business registration under Article 8 of the Value-Added Tax Act in order to perform the duties under Article 2 of the Act, take measures to cover liability for compensation exceeding 50 million won for each certified public accountant in any of the following manners within 15 days from the date of business registration and file a report on such fact with the Institute of Certified Public Accountants, along with documentary evidences: <Amended by Presidential Decree No. 17238, Jun. 18, 2001; Presidential Decree No. 19374, Mar. 10, 2006; Presidential Decree No. 24638, Jun. 28, 2013>
1. Purchase of insurance;
2. Joining in the mutual benefits projects operated by the Institute of Certified Public Accountants so as to cover liability for compensation under Article 19 of the Act.
(2) A certified public accountant who has purchased insurance in accordance with paragraph (1) shall take measures to cover liability for compensation specified in any subparagraphs of paragraph (1) by the date of payment in case where the compensation concerned has been paid for reasons of occurrences of grounds for compensation, or by the expiry of insurance period in case where the period of insurance has been elapsed, and shall file reports with the Institute of Certified Public Accountants within 15 days from the date on which such measures are taken.
(3) Where the Institute of Certified Public Accountants disburses the compensation owed by a certified public account for his liability for compensation from funds established by mutual benefits projects, the certified public accountant who has subscribed to mutual benefits projects shall pay the sum of money accountable for the disbursement for compensation or take measures provided for in paragraph (1) 1 to cover liability for compensation by the date on which the Institute of Certified Public Accountants disburses the compensation and file reports with the Institute of Certified Public Accountants within 15 days from the date on which such measures are taken.
(4) Requirements for, procedures for, repayment of payment out of funds established by mutual benefits projects, or matters necessary for mutual benefits projects other than those provided for in paragraphs (1) through (3) shall be determined by the Institute of Certified Public Accountants.
law view
 Article 14 (Restrictions on Functions)   print
(1) "Person as prescribed by Presidential Decree" in Article 21 (1) 3 of the Act means a person falling under any of the following subparagraphs who has a relationship with either a certified public accountant or his spouse: <Amended by Presidential Decree No. 17238, Jun. 18, 2001; Presidential Decree No. 18352, Apr. 1, 2004; Presidential Decree No. 19374, Mar. 10, 2006>
1. A person whose stocks or contributed shares are owned by a certified public accountant or his spouse;
2. A person who has a credit or obligation worth not less than 30 million won against a certified public accountant or his spouse: Provided, That the credit or obligation falling under any of the following items shall be excluded:
(a) The credit directly connected with the service of the certified public accountant pursuant to the provisions of Article 2 of the Act;
(b) The credit, such as deposit, installment savings within the extent of the amount protected in accordance with the Depositor Protection Act;
(c) The credit, such as membership, license to a facility, which has been purchased in accordance with the standard stipulation or at a normal price;
(d) The credit, such as retirement pension pursuant to the Guarantee of Workers' Retirement Benefits Act;
(e) The obligation established after supplying collateral in accordance with the normal procedures, such as a loan secured against house, a loan secured against saving, etc. which have been extended by the institutions pursuant to the provisions of Article 38 of the Act on the Establishment, etc. of Financial Services Commission;
(f) The obligation that has not been overdue from among the obligations with the date of payment not longer than 2 months following the use of credit card pursuant to the provisions of subparagraph 3 of Article 2 of the Specialized Financial Credit Business Act;
(g) The credit or obligation occurred involuntarily from merger, inheritance or lawsuit, etc. during the period of audit;
3. A person who rents office premises to a certified public accountant without charging rents or for such rent as is considerably low compared to normal transaction prices;
4. A person who continues to remunerate a certified public accountant or to provide other special economic benefits with him for his services other than for what are considered as normal services by certified public accountants; and
5. A person who has provided or committed to provide the stocks of his own firm, bonds with warrant, convertible bonds, or stock options to a certified public accountant as a price for rendering the services under Article 2 of the Act.
(2) "Business that is prescribed by Presidential Decree" in Article 21 (2) 4 of the Act means the business (hereinafter referred to as the "business of actual inspection, etc.") of actual inspection, financial report, and valuation of assets, capital, and other rights (including those not indicated in financial statements; hereinafter referred to as the "assets, etc.") of a specific company and any other business of presenting any opinion on the appropriateness of the transactions of the assets, etc. and other contracts therefor, for the purposes of selling the whole or part of the assets, etc. <Newly Inserted by Presidential Decree No. 18352, Apr. 1, 2004; Presidential Decree No. 19374, Mar. 10, 2006>
(3) Where a council of creditors has been organized for the purpose of collecting bad credits, the business of actual inspection, etc. carried out by the members of the council of creditors (hereinafter referred to as the "members") for the purpose of joint sale of assets, etc. which had been acquired through conversion into investment or proffer of collateral, etc. by the largest stockholder may be carried out by a certified public accountant, notwithstanding the provisions of paragraph (2): Provided, That the certified public accountant falling under any of the following subparagraphs shall be excluded: <Newly Inserted by Presidential Decree No. 19374, Mar. 10, 2006>
1. The certified public accountant rendering the service of auditing or identifying the members who have charge of the service of joint sale of assets, etc.;
2. The certified public accountant rendering the service of auditing or identifying the members who have 50/100 or more of the assets, etc. that are intended for joint sale;
3. The certified public accountant who renders the service of auditing or identifying the members whose sum total of the assets, etc. in possession are 50/100 or more of the assets, etc. intended for joint sale.
(4) "Procedures prescribed by Presidential Decree" in Article 21 (3) of the Act means procedures that a certified public accountant consults with an auditor (including the audit committee under Article 415-2 of the Commercial Act; hereafter in this Article referred to as the "auditor, etc.") of a company about its business prior to the conduct of any other business than those as referred to in any subparagraph of Article 21 (2) of the Act and seeks a consent of the auditor, etc. to such business as having the potential for causing the conflict of interest. <Newly Inserted by Presidential Decree No. 18352, Apr. 1, 2004>
(5) With respect to the business dealt with pursuant to the procedures as referred to in paragraph (3), the certified public accountant concerned shall put on record the matters about which he has consulted with the auditor, etc. and to which he has obtained a consent from the auditor, etc., and keep it for 8 years. <Newly Inserted by Presidential Decree No. 18352, Apr. 1, 2004>
CHAPTER IV ACCOUNTINGCORPORATION, ETC.
law view
 Article 15 (Registration of Accounting Corporation)   print
(1) A person wishing to register an accounting corporation pursuant to Article 24 (1) of the Act, shall submit an application for the registration of an accounting corporation to the Financial Services Commission along with documents of the following subparagraphs: <Amended by Presidential Decree No. 15748, Apr. 1, 1998; Presidential Decree No. 17238, Jun. 18, 2001; Presidential Decree No. 20653, Feb. 29, 2008>
1. Articles of incorporation;
2. Resume of the representative director;
3. Documents indicating registration number and date of directors and member accountants;
4. Documents certifying payment of capital (a certificate of payment of capital issued by banks or other financial institutions in case of monetary contribution; and a certificate of performance and an appraisal sheet issued by authorized appraisal institution in case of proprietary contribution);
5. Business plans and budgetary document;
6. Documents indicating places in which main or branch offices are to be located.
(2) The Financial Services Commission shall issue a certificate of registration of an accounting corporation to a person who has made a registration therefor under paragraph (1). <Amended by Presidential Decree No. 15748, Apr. 1, 1998; Presidential Decree No. 17238, Jun. 18, 2001; Presidential Decree No. 20653, Feb. 29, 2008>
law view
 Article 15-2 (Restriction on Functions of Accounting Corporation)   print
(1) "Person prescribed by Presidential Decree" in Article 33 (1) 3 of the Act means a person falling under any of the following subparagraphs: <Amended by Presidential Decree No. 19374, Mar. 10, 2006>
1. A person who employs the staff member of an accounting corporation in charge of the business of auditing or certifying his financial statements, etc. or his spouse within the past one year as his officer or other equivalent thereto (including a staff member in charge of his financial affairs);
2. A person who has credits or obligations worth not less than 100 million won against an accounting corporation. In this case, the proviso to Article 14 (1) 2 shall apply mutatis mutandis to the accounting corporation; or
3. A person who has the relation as referred to in Article 14 (1) 3 through 5 with an accounting corporation.
(2) The provisions of Article 14 (2) through (5) shall apply mutatis mutandis to accounting corporations. In this case, a "certified public accountant" shall be deemed an "accounting corporation". <Amended by Presidential Decree No. 19374, Mar. 10, 2006>
[This Article Newly Inserted by Presidential Decree No. 18352, Apr. 1, 2004]
law view
 Articles 16 through 18 Deleted.<by Presidential Decree No. 17238, Jun. 18, 2001>   print
law view
 Article 19 (Maintenance of Capital)   print
"Amount determined by Presidential Decree" in Article 27 (2) of the Act means 500 million won. <Amended by Presidential Decree No. 17238, Jun. 18, 2001>
law view
 Article 20 (Accumulation of Compensation Reserve)   print
(1) Pursuant to Article 28 (1) of the Act, an accounting corporation shall reserve the amount accountable for two percent of the turnover of the present business year in each business year for compensation reserve.
(2) Under paragraph (1), an accounting corporation shall reserve the compensation reserve until it reaches the amount accountable for an average of 10 percent of the turnover of the two preceding business years and the present business year.
(3) Where an accounting corporation exercises indemnity against liability of a director or a member accountant for payment out of compensation reserve, it shall add the indemnity amount to the compensation reserve.
law view
 Article 21 (Limited Contribution, etc. in Other Corporations)   print
The aggregate amount of contributions into other corporations and security for liability of other persons by an accounting corporation provided for in Article 29 (1) of the Act shall not exceed the amount accountable for 25 percent (10 percent of its own equity in case of the amount of securing liability of other persons) of its own equity provided for in Article 29 (2) of the Act (referred to as "its own equity"; hereafter the same shall apply in this Article): Provided, That where the amount computed by the reduction of the compensation reserve out of its own equity exceeds 500 million won, the amount not exceeding 50 percent thereof may be contributed into other corporations. <Amended by Presidential Decree No. 17238, Jun. 18, 2001>
law view
 Article 22 (Branch Office)   print
An accounting corporation which establishes branch offices pursuant to Article 32 (1) of the Act shall have three or more full-time certified public accountants for each branch office.
[This Article Wholly Amended by Presidential Decree No. 16846, Jun. 23, 2000]
law view
 Article 23 (Management or Operation of Deposits)   print
(1) Where an accounting corporation, pursuant to Article 37 (3) of the Act, deposits a sum of money accountable for the compensation reserve (hereinafter referred to as "deposits") with the Institute of Certified Public Accountants, deposits shall be placed with the designation of a director to whom deposits shall be refunded (hereinafter referred to as "depositor"), and with the determination of the amount of deposits: Provided, That if an accounting corporation which remains or is created after an accounting corporation is dissolved because of merger succeeds the compensation reserve of the dissolved accounting corporation, de posits shall be deemed to have been placed in accordance with Article 37(3) of the Act.
(2) In case of deposits under the main sentence of paragraph (1), a depositor shall be a director at the time of dissolution, and the sum of money shall be computed by the rate of contribution at the time of dissolution.
(3) The Institute of Certified Public Accountants shall maintain separate accounts of deposits from its other assets by identifying depositors.
(4) Where a person suffering damage applies for payment of deposits to the Institute of Certified Public Accountants for reasons of final judg ment of compensation or judicial settlement (including the cases in which disputing parties accept conciliatory proposals in accordance with Article 29 (3)), together with documentary evidences of such reasons, payments not exceeding deposits by each depositor shall be made within a month from the date of application.
(5) The Institute of Certified Public Accountants shall save deposits under paragraph (1) into banks or other financial institutions, or manage or operate them by purchasing government bonds or other corporate bonds by which the principal is promised to be guaranteed.
(6) The Institute of Certified Public Accountants shall refund the remaining sum of money out of deposits to depositors three years after the date on which deposits are made (hereinafter referred to as the "refund date"): Provided, That where judicial actions are pending with respect to liability for compensation under Article 28 of the Act as of the refund date, the remaining sum shall be refunded after payments out of deposits by a final judgment of such actions. <Amended by Presidential Decree No. 15748, Apr. 1, 1998>
(7) Matters necessary for management of deposits other than those provided for in paragraphs (1) through (6) shall be determined by the Institute of Certified Public Accountants.
law view
 Article 23-2 (Registration of Foreign Certified Public Accountants)   print
(1) Any person who intends to make a registration of foreign certified public accountants pursuant to Article 40-4 (1) of the Act shall submit an application form for registration of foreign certified public accountants to the Financial Services Commission, attaching the following documents thereto:
1. A document evidencing that the said person is a certified public accountant in the original qualification nation;
2. A document evidencing that the said person does not fall under grounds for disqualification referred to in Article 4 of the Act;
3. A document confirming a history of actions taken by the supervisory agency of the original qualification nation against the said person in connection with his/her status, such as disciplinary actions;
4. One copy of resume;
5. Three identical passport-sized photographs.
(2) Any person who has made a registration of foreign certified public accountants shall, when there is any change in registered matters, report such fact to the Financial Services Commission without delay, attaching thereto documents evidencing such change.
[This Article Newly Inserted by Presidential Decree No. 23002, Jun. 30, 2011]
law view
 Article 23-3 (Renewal of Registration of Foreign Certified Public Accountants)   print
(1) Any person who intends to have his/her registration of foreign certified public accountants renewed pursuant to Article 40-4 (5) of the Act shall submit an application form for the renewal of registration of foreign certified public accountants to the Financial Services Commission, attaching documents referred to in each subparagraph of Article 23-2 (1) thereto.
(2) The Financial Services Commission shall notify a person who has registered as a foreign certified public accountant, in advance, of the fact that when he/she intends to renew registration, he/she shall apply for renewal thereof up to a month before the registration's effective period expires and of the renewal procedure under paragraph (1) up to 60 days before the registration's effective period expires, using a text message of a cellular phone, e-mail, fax, telephone, etc. <Newly Inserted by Presidential Decree No. 23884, Jun. 27, 2012>
[This Article Newly Inserted by Presidential Decree No. 23002, Jun. 30, 2011]
law view
 Article 23-4 (Registration of Foreign Accounting Corporations)   print
Any person who intends to make a registration of foreign accounting corporations pursuant to Article 40-7 (1) of the Act shall submit an application form for registration of foreign accounting corporations to the Financial Services Commission, attaching the following documents thereto:
1. A document evidencing that the relevant foreign accounting corporation is an accounting corporation in the original qualification nation;
2. Articles of incorporation;
3. A resume of the representative of the foreign accounting office expected to be established in Korea;
4. A document stating the registration numbers and dates of registration of affiliated foreign certified public accountants;
5. Business plans and budgetary documents;
6. A document confirming a history of actions taken by the supervisory agency of the original qualification nation against the relevant accounting corporation, such as the suspension of practice;
7. A list of employees of the foreign accounting office expected to be established in Korea;
8. A document stating the expected location of the foreign accounting office.
[This Article Newly Inserted by Presidential Decree No. 23002, Jun. 30, 2011]
CHAPTER V KOREAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
law view
 Article 24 (By-laws)   print
By-laws of the Institute of Certified Public Accountants shall contain each of the following subparagraphs:
1. Denomination and place of headquarters;
2. Matters relating to the establishment of branch office;
3. Matters relating to appointment of officers and their functions;
4. Matters relating to admission and withdrawal of members;
5. Matters relating to composition, functions and duties, meetings of general meetings of members, board of directors, ethics committee, other bodies;
6. Matters relating to supervision of services by members;
7. Matters relating to discipline;
8. Matters relating to professional ethics, rights and obligations of members;
9. Matters relating to membership dues;
10. Matters relating to accounting and assets;
11. Matters relating to training of members;
12. Matters relating to mutual benefits projects to cover liability for compensation of members;
13. Matters relating to organization of the Institute of Certified Public Accountants.
law view
 Article 25 (Officers and Directors)   print
(1) There shall be officers and directors at the Institute of Certified Public Accountants as follows:
1. A Chairperson;
2. Five vice-chairmen or less;
3. Fifteen directors or less;
4. Two auditors.
(2) There shall be at least one full-time Vice-Chairperson and at least one full-time director from among such officers and directors as provided in paragraph (1).
law view
 Article 26 (Notification, etc. of Holding of General Meetings)   print
(1) Where the Institute of Certified Public Accountants wishes to hold general meetings, it shall notify the Financial Services Commission of date and time, place and agenda of general meetings not later than a week prior to the date on which the general meetings are to be held. <Amended by Presidential Decree No. 15748, Apr. 1, 1998; Presidential Decree No. 20653, Feb. 29, 2008>
(2) In case where the Institute of Certified Public Accountants holds general meetings in accordance with paragraph (1), it shall notify forthwith the Financial Services Commission of results of such general meetings. <Amended by Presidential Decree No. 15748, Apr. 1, 1998; Presidential Decree No. 20653, Feb. 29, 2008>
law view
 Article 27 (Composition, etc. of Disputes Conciliation Commission)   print
(1) The Disputes Conciliation Commission referred to in Article 45 (2) of the Act (hereafter referred to as the "Dispute Conciliation Commission" in this Chapter) shall be composed of seven members including a Chairperson. <Amended by Presidential Decree No. 16846, Jun. 23, 2000>
(2) The full-time Vice-Chairperson of the Institute of Certified Public Accountants shall be designated by the president of the Institute of Certified Public Accountants as the Chairperson, and members shall be appointed by the president of the Institute of Certified Public Accountants from among the following persons: <Amended by Presidential Decree No. 15748, Apr. 1, 1998; Presidential Decree No. 17238, Jun. 18, 2001; Presidential Decree No. 19374, Mar. 10, 2006; Presidential Decree No. 19958, Mar. 27, 2007>
1. A person who is recommended by the Governor of the Financial Supervisory Service from among its assistant vice-governors;
2. A person who is recommended by the heads of associations whose members are stock-listed corporations and which were established under Article 181 (1) of the Securities and Exchange Act from among their officers and directors;
3. One officer of a consumer organization registered with the Fair Trade Commission pursuant to Article 29 of the Framework Act on Consumers;
4. An attorney at law;
5. A university professor;
6. A certified public accountant of not less than 10 years' practice experience.
(3) The term of office of the Chairperson and members shall be two years and renewable.
(4) Any decision at meetings of the Dispute Conciliation Commission shall be made with the attendance of four or more members and with concurrent vote of a majority of those present. <Amended by Presidential Decree No. 16846, Jun. 23, 2000>
(5) Matters necessary for the operation of the Dispute Conciliation Commission other than those provided for in paragraphs (1) through (3) shall be determined by the Dispute Conciliation Commission. <Amended by Presidential Decree No. 16846, Jun. 23, 2000>
law view
 Article 28 (Request for Conciliation)   print
(1) Pursuant to Article 45 (1) of the Act, disputing parties may request the president of the Institute of Certified Public Accountants to provide conciliation.
(2) Pursuant to paragraph (1) above, a person wishing to make a request for conciliation shall submit a request, in writing, for conciliation to the Institute of Certified Public Accountants, together with each document of the following subparagraphs:
1. Documents evidencing grounds of request for conciliation and facts thereof;
2. Power of attorney in the case of request by an agent;
3. Other evidential documents and materials necessary for conciliation.
(3) Forms of request for conciliation under paragraph (2) above shall be determined by the Institute of Certified Public Accountants.
law view
 Article 29 (Procedures for Conciliation of Disputes)   print
(1) In the case of request for conciliation, under Article 28 (1) above, the president of the Institute of Certified Public Accountants may notify the disputing parties of content of the request and encourage them to reach an agreement, and shall immediately refer it to the Dispute Conciliation Commission unless an agreement is made within 30 days from the date on which the request is made. <Amended by Presidential Decree No. 16846, Jun. 23, 2000>
(2) Where one of the disputing parties commences an action before the court during conciliation proceedings, the president of the Institute of Certified Public Accountants shall suspend the proceedings despite paragraph (1) and notify the parties of it.
(3) In the event that the Dispute Conciliation Commission prepares conciliatory proposals, the president of the Institute of Certified Public Accountants may present such conciliatory proposals to the requesting persons and the party concerned, and recommend them to accept such proposals. <Amended by Presidential Decree No. 16846, Jun. 23, 2000>
(4) The Dispute Conciliation Commission, where it deemed necessary to hold hearings of the disputing parties or other interested persons, may re quest them to appear and present their views. <Amended by Presidential Decree No. 16846, Jun. 23, 2000>
(5) The disputing parties or other interested persons may appear before the Dispute Conciliation Commission and present their views. <Amended by Presidential Decree No. 16846, Jun. 23, 2000>
(6) Pursuant to paragraphs (4) and (5), a person wishing to present his views may appoint his agent to appear and present his views.
(7) Matters necessary for dispute settlement procedures other than those specified in paragraphs (1) through (6) shall be determined by the Dispute Conciliation Commission. <Amended by Presidential Decree No. 16846, Jun. 23, 2000>
CHAPTER VI DISCIPLINE
law view
 Article 30 (Disciplinary Tribunal)   print
A Certified Public Accountants Disciplinary Committee (hereinafter referred to as the "Disciplinary Committee") shall be established in the Financial Services Commission, pursuant to Article 48 of the Act. <Amended by Presidential Decree No. 15748, Apr. 1, 1998; Presidential Decree No. 16846, Jun. 23, 2000; Presidential Decree No. 20653, Feb. 29, 2008>
law view
 Article 31 (Composition of Disciplinary Committee)   print
(1) The Disciplinary Committee shall be composed of seven members including a Chairperson. <Amended by Presidential Decree No. 16846, Jun. 23, 2000>
(2) The Chairperson shall be designated by the Chairperson of the Financial Services Commission from among public officials belonging to the Financial Services Commission, and the members shall be composed of the following persons: <Amended by Presidential Decree No. 15748, Apr. 1, 1998; Presidential Decree No. 16846, Jun. 23, 2000; Presidential Decree No. 19374, Mar. 10, 2006; Presidential Decree No. 20653, Feb. 29, 2008>
1. Each person nominated, upon the request of the Chairperson of the Financial Services Commission, by the Chairperson of the Board of Audit and Inspection and the Minister of Legislation from among public officials of Grade III or higher belonging to such Board and such Ministry;
2. One person nominated by the Chairperson of the Financial Services Commission from among public officials of Grade III or higher belonging to the Financial Services Commission;
3. One person nominated by the president of the Institute of Certified Public Accountants from among full-time vice-presidents of such Institute;
4. One of non-standing members of the Securities Futures Commission under the Act on the Establishment, etc. of Financial Services Commission (hereinafter referred to as the "Securities Futures Commission");
5. One person nominated, upon the request of the Chairperson of the Financial Services Commission, by the Minister of Strategy and Finance from among public officials of Grade III or higher belonging to such Ministry.
law view
 Article 32 (Chairperson)   print
(1) The Chairperson shall control general matters of meetings of the Disciplinary Committee, represent it, and call and preside over the meetings thereof. <Amended by Presidential Decree No. 16846, Jun. 23, 2000>
(2) Where the Chairperson is incapable of performing functions due to unavoidable causes, a member nominated by the Chairperson shall act for the chairman: Provided, That where the Chairperson is incapable of nominating his substitute to act for him for unavoidable reasons, the member nominated by the Financial Services Commission shall act for the Chairperson. <Amended by Presidential Decree No. 15748, Apr. 1, 1998; Presidential Decree No. 20653, Feb. 29, 2008>
law view
 Article 33 (Request for Disciplinary Decisions)   print
(1) Where the Financial Services Commission deems there are reasons falling under each of subparagraph of Article 48 (1) of the Act, it shall make a request, in writing, to the Disciplinary Committee, along with the documentary evidences. <Amended by Presidential Decree No. 15748, Apr. 1, 1998; Presidential Decree No. 16846, Jun. 23, 2000; Presidential Decree No. 20653, Feb. 29, 2008>
(2) Upon the request under paragraph (1), the Disciplinary Committee shall notify forthwith the person to whom allegations are made. <Amended by Presidential Decree No. 16846, Jun. 23, 2000>
law view
 Article 34 (Time-limit for Disciplinary Decisions)   print
In the case of request for disciplinary decisions, the Disciplinary Committee shall make a disciplinary decision within 30 days from the date on which the request is made: Provided, That if there are unavoidable causes, the period may be extended within 30 days through a decision of the Disciplinary Committee. <Amended by Presidential Decree No. 16846, Jun. 23, 2000>
law view
 Article 35 (Decisions of Disciplinary Committee)   print
Any decision at meetings of the Disciplinary Committee shall be made with the attendance of not less than four members and with concurrent vote of a majority of the members present. <Amended by Presidential Decree No. 16846, Jun. 23, 2000>
law view
 Article 36 (Exclusion or Challenge)   print
(1) A member of the Disciplinary Committee who is relatives of a person to whom allegations are made, or who is involved in grounds of discipline shall not take part in the deliberation of subjects of discipline. <Amended by Presidential Decree No. 16846, Jun. 23, 2000>
(2) Where a person to whom allegations are made deems a member of the Disciplinary Committee is likely to be under justifiable doubts as to reliable decisions, he may make a request for challenging the member, together with statements attesting reasons of such request. <Amended by Presidential Decree No. 16846, Jun. 23, 2000>
(3) Where there is a request for challenging a member of the Disciplinary Committee pursuant to paragraph (2), the Disciplinary Committee shall make a decision as to whether or not the member shall be challenged. In this case, the challenged member may not take part in making such decision. <Amended by Presidential Decree No. 16846, Jun. 23, 2000>
law view
 Article 37 (Notification, etc. of Disciplinary Decisions)   print
(1) In making a disciplinary decision against a person to whom allegations are made, the Disciplinary Committee shall notify forthwith the Financial Services Commission of such decisions, together with reasoned statements. <Amended by Presidential Decree No. 15748, Apr. 1, 1998; Presidential Decree No. 16846, Jun. 23, 2000; Presidential Decree No. 17238, Jun. 18, 2001; Presidential Decree No. 20653, Feb. 29, 2008>
(2) Where the Financial Services Commission has taken a disciplinary action pursuant to a decision of the Disciplinary Committee, it shall notify forthwith in writing, which clarifies the reasons for the disciplinary action, the president of the Institute of Certified Public Accountants and the Chairperson of the Securities Futures Commission, respectively. <Newly Inserted by Presidential Decree No. 17238, Jun. 18, 2001; Presidential Decree No. 20653, Feb. 29, 2008>
CHAPTER VII SUPPLEMENTARY PROVISIONS
law view
 Article 38 (Entrustment of Services)   print
(1) Pursuant to Article 52 (1) of the Act, the duties of the Financial Services Commission under Articles 7 through 9, 30 (2), 40-4 (1) through (3), 40-5, 40-6 and 40-13 (1) of the Act, and Articles 10, 11, 23-2 and 23-3 of this Decree, shall be entrusted with the Institute of Certified Public Accountants. <Amended by Presidential Decree No. 15748, Apr. 1, 1998; Presidential Decree No. 17238, Jun. 18, 2001; Presidential Decree No. 20653, Feb. 29, 2008; Presidential Decree No. 23002, Jun. 30, 2011>
(2) Pursuant to Article 52 (1) of the Act, duties of the Financial Services Commission as to disciplinary action referred to in Article 48 (2) 3 and 4 of the Act from among those duties under Article 48 (1) of the Act shall be entrusted with the Institute of Certified Public Accountants. In such cases, a decision-making body replacing the Certified Public Accountants Disciplinary Committee shall be the Ethics Committee pursuant to subparagraph 5 of Article 24. <Amended by Presidential Decree No. 15748, Apr. 1, 1998; Presidential Decree No. 20653, Feb. 29, 2008; Presidential Decree No. 23002, Jun. 30, 2011>
(3) Where the Institute of Certified Public Accountants performs entrusted duties pursuant to paragraph (2), the provisions of Articles 33 through 37 shall apply mutatis mutandis. In such cases, "Chairperson of the Financial Services Commission" in Article 33 shall be construed as "president of the Institute of Certified Public Accountants", "not less than four" in Article 35 as "majority", "Committee" in Articles 33 through 37 as "Ethics Committee", respectively. <Amended by Presidential Decree No. 15748, Apr. 1, 1998; Presidential Decree No. 20653, Feb. 29, 2008>
(4) A person who is dissatisfied with the disciplinary action taken by the Institute of Certified Public Accountants may request it to reopen hearings.
(5) Where the Financial Services Commission deems that disciplinary action taken by the Institute of Certified Public Accountants is unreasonable, it may request such Institute to reopen hearings, or may request the Certified Public Accountants Disciplinary Committee to revoke such disciplinary action and make a new disciplinary decision. <Amended by Presidential Decree No. 15748, Apr. 1, 1998; Presidential Decree No. 20653, Feb. 29, 2008>
(6) Pursuant to Article 52 (2) of the Act, the following duties from among duties of the Financial Services Commission relating to examinations under Article 5 of the Act, and services of the Financial Services Commission under Article 30 (3) of the Act shall be entrusted with the Governor of the Financial Supervisory Service: <Amended by Presidential Decree No. 15748, Apr. 1, 1998; Presidential Decree No. 20653, Feb. 29, 2008; Presidential Decree No. 23002, Jun. 30, 2011>
1. Delivery and receipt of applications for attempting examinations;
2. Administration of examinations and ancillary services thereof.
(7) As respects entrusted duties pursuant to paragraph (1), (2), or (6), both the Institute of Certified Public Accountants and the Governor of the Financial Supervisory Service shall notify the Financial Services Commission of the results thereof. <Amended by Presidential Decree No. 15748, Apr. 1, 1998; Presidential Decree No. 20653, Feb. 29, 2008>
law view
 Article 38-2 (Management of Sensitive Information and Personally Identifiable Information)   print
The Financial Services Commission (including a person who is entrusted with affairs of the Financial Services Commission under Article 52-5 (3) of the Act and Article 38 of this Decree) or the Disciplinary Committee may manage information equivalent to criminal history records under subparagraph 2 of Article 18 of the Enforcement Decree of the Personal Information Protection Act and data that contain resident registration numbers, passport numbers, or alien registration numbers under subparagraph 1, 2, or 4 of Article 19 of the same Decree, where it is inevitable to conduct the following affairs:
1. Affairs concerning the administration of the CPA examination under Article 5 of the Act;
2. Affairs concerning the registration of certified public accountants, accounting corporations, foreign certified public accountants, or foreign accounting corporations under Article 7, 24, 40-4, or 40-7 of the Act;
3. Affairs concerning the cancellation of registration of certified public accountants, accounting corporations, foreign certified public accountants, or foreign accounting corporations under Article 9, 39, 40-6, or 40-8 of the Act;
4. Affairs concerning the disciplinary action of foreign certified public accountants, or certified public accountants under Article 40-17 or 48 of the Act;
5. Affairs concerning the imposition, collection, etc. of penalty surcharges under Articles 52-2 through 52-5 of the Act.
[This Article Newly Inserted by Presidential Decree No. 23488, Jan. 6, 2012]
CHAPTER VIII LEVY AND COLLECTION OF PENALTY SURCHARGE
law view
 Article 39 (Criteria, etc. for Levy of Penalty Surcharge)   print
(1) Where the Financial Services Commission levies a penalty surcharge under Article 52-2 of the Act, it shall comply with the criteria falling under any of the following subparagraphs: <Amended by Presidential Decree No. 20653, Feb. 29, 2008>
1. The amount equivalent to 70/100 of the maximum amount of penalty surcharge as stipulated in Article 52-2 (1) of the Act (hereafter referred to as the "maximum amount of penalty surcharge" in this Article) shall be levied as a penalty surcharge, in case where the amount of error or ommission due to the relevant offenses is in excess of the amount under the following items:
(a) Accounting corporation: 40/100 of the gross value of assets of a firm subject to auditing or certification;
(b) Certified public accountant: 20/100 of the gross value of assets of a firm subject to auditing or certification;
2. The amount equivalent to 60/100 of the maximum amount of penalty surcharge shall be levied as a penalty surcharge, in case where an offense falls under any of the following items: Provided, That this shall not apply to the case where the offense falls under subparagraph 1:
(a) Where the offense subject to the levy of penalty surcharge is committed during the last 3 years over 3 times in case of an accounting corporation, and over twice in case of a certified public accountant;
(b) Where the scale of profits acquired due to the relevant offenses is in excess of 500 million won in case of an accounting corporation, and in excess of 100 million won in case of a certified public accountant;
3. In other cases than subparagraphs 1 and 2, the amount equivalent to not less than 20/100 and less than 60/100 of the maximum amount of penalty surcharge shall be levied as a penalty surcharge.
(2) The amount of penalty surcharge computed under paragraph (1) may be weighted or mitigated within the limit of one half of the relevant amount in view of the conditions under each subparagraph of Article 522 (2) of the Act: Provided, That the gross amount of penalty surcharge shall not exceed the maximum amount of penalty surcharge even where it is weighted.
(3) Where the Financial Services Commission levies a penalty surcharge under Article 52-2 of the Act, it shall notify in writing of the payment of penalty surcharge, clarifying the type of the relevant offense and the amount of such penalty surcharge. <Amended by Presidential Decree No. 20653, Feb. 29, 2008>
(4) Any person in receipt of notification under paragraph (3) shall pay the penalty surcharge within 60 days from the date of receiving such notification to a collecting agent designated by the Financial Services Commission. <Amended by Presidential Decree No. 20653, Feb. 29, 2008>
[This Article Newly Inserted by Presidential Decree No. 17238, Jun. 18, 2001]
law view
 Article 40 (Extension of Time of Payment and Installment Payment)   print
(1) An extension of time of payment under Article 52-4 (1) of the Act shall not exceed one year from the day next to that of payment.
(2) In case where granting an installment payment under Article 524 (1) of the Act, an interval between each time of installment payment shall be for not more than 6 months, and the frequency of installment shall be not more than 3 times.
(3) Matters necessary for the extension of time of payment or a written application for an installment payment under Article 52-4 (2) of the Act shall be determined by Ordinance of the Prime Minister. <Amended by Presidential Decree No. 20653, Feb. 29, 2008>
[This Article Newly Inserted by Presidential Decree No. 17238, Jun. 18, 2001]
law view
 Article 41 (Additional Dues)   print
The term "additional dues as prescribed by the Presidential Decree" in Article 52-5 (1) of the Act means the amount computed by multiplying the delinquent penalty surcharge by 6/100 per annum. In such cases, the period for collecting additional dues shall not exceed 60 months. <Amended by Presidential Decree No. 22717, Mar. 22, 2011>
[This Article Newly Inserted by Presidential Decree No. 17238, Jun. 18, 2001]
law view
 Article 42 (Urging)   print
(1) The urging under Article 52-5 (2) of the Act shall be made in writing within 15 days after the expiry of the payment term.
(2) The payment term of delinquent penalty surcharge shall, in case of issuing an urging notice under paragraph (1), be within 10 days from the date of issuing such notice.
[This Article Newly Inserted by Presidential Decree No. 17238, Jun. 18, 2001]
law view
 Article 43 (Entrustment of Disposition for Arrears)   print
(1) Where the Financial Services Commission entrusts the Commissioner of the National Tax Service with the duties of disposition for arrears under Article 52-5 (3) of the Act, it shall do so in writing along with the documents falling under any of the following subparagraphs: <Amended by Presidential Decree No. 20653, Feb. 29, 2008>
1. Resolution notice of revenue collection and a notice thereof; and
2. Urging notice of payment.
(2) The Commissioner of the National Tax Service shall, where he is entrusted with the duties of disposition for arrears under paragraph (1), notify in writing the Financial Services Commission of the date of completing such duties and other necessary matters within 30 days from the date of completing the duties of disposition for arrears. <Amended by Presidential Decree No. 20653, Feb. 29, 2008>
[This Article Newly Inserted by Presidential Decree No. 17238, Jun. 18, 2001]
ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Examples of Application as to Computation of Duration of Training)
At the time this Decree enters into force where a person who has passed the certified public accountants second examination administered in accordance with the amended provisions of the Enforcement Decree of the Certified Public Accountant Act, Presidential Decree No. 12427, used to work or is working for an establishment designated by the Minister of Finance and Economy pursuant to Article 12 (1), the period of his em ployment shall be included in the duration of training. In this circumstances, he must undergo training for not less than hours determined by the Institute of Certified Public Accountants pursuant to the amended provisions of Article 12 (5) at an accounting training institute under Article 46 (2) of the Act.
Article 3 (Examples of Application as to Accumulation of Compensation Reserve)
The amended provisions of Article 20 (1) above shall apply to the turnover of a business year which commences first after this Act takes effect.
Article 4 (Transitional Measures Relating to Recognition of Qualification for Certified Public Accountants with Regard to Those who Passed Certified Public Accountants Second Examination Administered Prior to 1988)
(1) A person who passed the certified public accountants second examination administered prior to the entry into force of the amended provisions of the Enforcement Decree of the Certified Public Accountant Act, Presidential Decree No. 12427 shall be recognized as qualified to act as certified public accountants, limited to each of the following subparagraphs:
1. Where he passed tests on tax law and finance management from among subjects of the second examination which are set out in Table 2: Provided, That if he is qualified to act as a certified tax consultant or falls within the category under Article 5-2 (2) of the Certified Tax Accountant Act, he shall be exempt from test on tax law;
2. Where he accomplished training as to tax law and finance management from among subjects of the second examination set out in Table 2 for not less than 100 hours in each subject at the accounting training institute pursuant to Article 46 (2) of the Act, and scored not less than 60 marks in each paper on tax law and finance management administered by the accounting training institute: Provided, That if he is qualified to act as certified tax consultant or falls within the category under Article 5-2 (2) of the Certified Tax Accountant Act, he is exempt from test and examination on tax law.
(2) Tests, pursuant to paragraph (1) 1, shall be administered at the same time as the certified public accountants second examination, and the text of Article 3 (2) and the amended provisions of Articles 7 through 9 shall apply to procedures on attempting the examination and the determination of passing candidates.
Article 5 (Transitional Measures as to Computation of Duration of Training)
The period of training during which a person who passed the certified public accountants second examination administered prior to the entry into force of the amended provisions of the Enforcement Decree of the Certified Public Accountants Act, Presidential Decree No. 12967 has obtained training after he got registered on trainee certified public accoun tants register shall be included in the duration of training, prescribed in the amended provisions of Article 12 (2).
Article 6 (Transitional Measures as to Security Measures for Compensation)
At the time this Decree enters into force a certified public accountant who filed reports as to the commencement of practicing shall take measures to secure compensation pursuant to the amended provisions of Article 13 on July 15, 1997, despite the amended provisions of Article 13 (1), and file reports as to this with the Institute of Certified Public Accountants.
Article 7 (Transitional Measures as to Accounting Firm)
An accounting firm at the time of implementation of this Decree shall submit documents specified in each subparagraph of the amended provisions of Article 15 (1) and a copy of register containing each content of subparagraph of the amended provisions of Article 16 (2) with the Minister of Finance and Economy on December 31, 1997.
Article 8 (Transitional Measures as to Maintenance of Capital)
In the case in which the amended provisions of Article 19 apply with regard to an accounting firm established by Article 5 (3) of the Addenda of the Act, the amount which is to be determined on December 31, 1999 in accordance with the Presidential Decree shall be 500 million won.
Article 9 (Transitional Measures as to Limited Contributions into Other Corporations)
At the time this Decree enters into force, an accounting firm who has exceeded limits of contribution pursuant to the amended provisions of Article 21 shall satisfy the limits on December 31, 1998.
Article 10 (Transitional Measures as to Certified Public Accountants Disciplinary Committee)
At the time this Decree enters into force, members of the Certified Public Accountants Disciplinary Committee pursuant to the former provisions shall be deemed to be members of the Certified Public Accountants Disciplinary Committee pursuant to this Decree. In these circumstances, the terms of office shall commence from the date on which the terms of office starts in accordance with the former provisions.
Article 11 (Transitional Measures as to Extent of Functions of Overseas Certified Public Accountants)
As respects the extent of functions and title of an overseas certified public accountant who got approved by the Minister of Finance and Economy as qualified to act as certified public accountant at the time of the implementation of the amended provisions of the Enforcement Decree of the Certified Public Accountant Act, Presidential Decree No. 14231, the provisions of Articles 14 and 15 of the amended provisions of the Enforcement Decree of the Certified Public Accountant Act, Presidential Decree No. 12967 shall apply.
Article 12 (Relationship with Other Acts and Subordinate Statutes)
At the time this Decree enters into force, references in other legislation to the former Enforcement Decree of the Certified Public Accountant Act or its provisions, where there are pertinent provisions to them, shall be construed to include this Decree or relevant provisions thereof with the effect of replacing the former provisions.
ADDENDUM<Presidential Decree No. 15748, Apr. 1, 1998>
This Decree shall enter into force on April 1, 1998.
ADDENDUM<Presidential Decree No. 16846, Jun. 23, 2000>
This Decree shall enter into force on the date of its promulgation.
ADDENDA<Presidential Decree No. 17238, Jun. 18, 2001>
(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of subpara graph 1 of Article 14 shall enter into force on January 1, 2002.
(2) (Transitional Measures on Previous Authorization Notice of Establishment of Accounting Corporation) An authorization notice of establishment of accounting corporation issued to an accounting corporation under previous Article 15 (2) at the time of enforcement of this Decree shall be regarded as a registration certificate of accounting corporation issued under the amended provisions of Article 15 (2).
ADDENDUM<Presidential Decree No. 18312, Mar. 17, 2004>
This Decree shall enter into force on the date of its promulgation.
ADDENDA<Presidential Decree No. 18352, Apr. 1, 2004>
(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 2, 22, and 3 shall enter into force on January 1, 2007.
(2) (Applicable Cases concerning Restriction on Functions) The amended provisions of Articles 14 (2) and 15-2 shall apply with respect to the portion which is contracted on or after the enforcement date of this Decree.
ADDENDUM<Presidential Decree No. 19374, Mar. 10, 2006>
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 2 (4), 2-2 (4) and 3 (3) shall enter into force on January 1, 2007.
ADDENDA<Presidential Decree No. 19513, Jun. 12, 2006>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2006.
Articles 2 through 4 Omitted.
ADDENDA<Presidential Decree No. 19880, Feb. 12, 2007>
(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation.
(2) (Transitional Measures Regarding TOEFL IBT) Where any person has acquired marks necessary to be a successful applicant at a TOEFL Internet-based test referred to in the attached Table 3 and has submitted his test record in accordance with the public announcement of the plan for holding the 2007 certified public accountants examination before the enforcement of this Decree, he shall be deemed to have passed the test of English subject referred to in Article 2 (1) and attached Table 1.
ADDENDA<Presidential Decree No. 19958, Mar. 27, 2007>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 28, 2007. (Proviso Omitted.)
Articles 2 through 8 Omitted.
ADDENDA<Presidential Decree No. 20653, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Article 2 Omitted.
ADDENDA<Presidential Decree No. 20947, Jul. 9, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 4, 2009. (Proviso Omitted.)
Articles 2 through 28 Omitted.
ADDENDA<Presidential Decree No. 21969, Dec. 31, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 8 Omitted.
ADDENDA<Presidential Decree No. 22493, Nov. 15, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 18, 2010.
Articles 2 through 5 Omitted.
ADDENDUM<Presidential Decree No. 22717, Mar. 22, 2011>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM<Presidential Decree No. 23002, Jun. 30, 2011>
This Decree shall enter into force on the date on which the Free Trade Agreement between the Republic of Korea and the European Unions and its Member States takes effect.
ADDENDA<Presidential Decree No. 23488, Jan. 6, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 Omitted.
ADDENDA<Presidential Decree No. 23759, May 1, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Article 2 (Applicability to Announcement of Examination)
Matters concerning the amendment of announcement period of the examination, etc. in this Decree shall apply to examinations administered on and after January 1, 2013.
ADDENDUM<Presidential Decree No. 23884, Jun. 27, 2012>
This Decree shall enter into force on the date of its promulgation.
ADDENDA<Presidential Decree No. 24638, Jun. 28, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2013. (Proviso Omitted.)
Articles 2 through 17 Omitted.
ADDENDA<Presidential Decree No. 24697, Aug. 27, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on August 29, 2013. (Proviso Omitted.)
Articles 2 through 13 Omitted.