In Korea, companies (whether a stock company and/or a LLC) with certain size or transaction volumes are subject to external audit. External audit can only be performed by public accounting firms in Korea.
The scale of business for external audit is fully described in the law of ENFORCEMENT DECREE OF THE ACT ON EXTERNAL AUDIT OF STOCK COMPANIES. Since the relevant clauses change almost every year in Korea, it is important to be familiar with the up-to-date rules for external audit requirements.
As of FY2020, a stock company with two or more of following conditions shall be subject to external audits in Korea:
(1) Total assets 12 billion won or more; and/or
(2) Total liabilities 7 billion won or more; and/or
(3) Sales 10 billion won or more; and/or
(4) Total number or employees 100 or more.
Once qualified and subject to external audit, the company shall appoint the external auditor, the Korean public accounting firm, and report it to Korean Financial Supervisory Service in April. A failure of reporting will be subject to penalties.