June 30, 1999

Establishment of Accounting Standard Setting Organization
In Korea

Establishment of Accounting Standard Setting Organization In Korea

June 30, 1999

Financial Supervisory Commission

In an effort to enhance credibility and transparency in accounting and corporate environment, the Korean government made an agreement with the IBRD in October 1998, to establish a private-sector accounting standard setting organization.
In order to devise a plan for an efficient and most appropriate organizational structure under Korean climate, the Financial Supervisory Commission (FSC) formed a steering committee including KICPA and other related institutions.
On June 30, 1999, the inaugural meeting of 13 member institutions was held at the KICPA conference hall to officially launch the organization, named as the Korea Accounting Standards Institute (KASI).
In addition to the approval of the articles of incorporation in the meeting, inaugural member institutions appointed the president, board of directors, and a standing board member of the Korea Accounting Standards Board (KASB).
After the approval by the FSC, facility arrangement, and personnel recruiting, the KASI is expected to be fully operational soon.

In an effort to enhance credibility and transparency in accounting and corporate environment, the Korean government made an agreement with the IBRD in October 1998, to establish a private-sector accounting standard setting organization. In order to devise a plan for an efficient and most appropriate organizational structure under Korean climate, the Financial Supervisory Commission (FSC) formed a steering committee including KICPA and other related institutions. On June 30, 1999, the inaugural meeting of 13 member institutions was held at the KICPA conference hall to officially launch the organization, named as the Korea Accounting Standards Institute (KASI). In addition to the approval of the articles of incorporation in the meeting, inaugural member institutions appointed the president, board of directors, and a standing board member of the Korea Accounting Standards Board (KASB). After the approval by the FSC, facility arrangement, and personnel recruiting, the KASI is expected to be fully operational soon.

Establishment of Accounting Standard Setting Organization in Korea

1. Establishment Process

- Agreement between the Korean government and the IBRD for the establishment of a private-sector accounting standard setting organization by June, 1999 (October, 1998)

- Completion of the research project for the establishment of the organization (April, 1999)

- Public announcement on the establishment plan (April 27, 1999)

- Preliminary meeting with representatives from KICPA and other related institutions (May 6, 1999)

- Opinion gathering through the FSC and SFC meeting and task force activities (May 10-11, 1999)

- Steering committee activities (May 14, May 24, May 31, June 24, 1999)

2. The Korea Accounting Standards Institute (KASI)

1) Organizational Structure

- General member meeting:

13 members including KAA, KICPA, FKI, KLCA, KSE, FSS, etc.

- Board of directors (11 directors):

4 directors appointed by KICPA, FSS, KSE, and KAA

5 directors appointed by other member institutions

President of the KASI

Standing board member of the KASB

- KASB (7 members):

President of the KASI

Standing board member

5 non-standing board members

The president of the KASI serves as the chairperson of the KASB and manages the office of research and technical activities

- Office of research and technical activities (20 staff members):

Administrative staff members and Research and technical support team

3. Schedule of Expected Events

- Approval by the FSC (Early July)

- Registration of incorporation (Middle of July)

- Facility arrangement and personnel recruiting (July through August)

- Expected opening (September 1)