Korea listed firms with non-appropriate audit opinions fall to 53 in 2025, association says
In short
The Korea Listed Companies Association said 53 of 2,485 KOSPI and KOSDAQ companies with December fiscal year-ends, or 2.1%, received non-appropriate audit opinions on their 2025 financial statements, down from 56 (2.3%) a year earlier. Non-appropriate opinions on internal accounting controls fell to 70 companies (2.8%) from 75 (3.1%), the lowest rate in six years. Improvement was concentrated among larger firms, while companies with assets under 100 billion won that receive only a review saw non-appropriate cases edge up.
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The Korea Listed Companies Association released an analysis on October 6 of audit opinions for 2,485 KOSPI and KOSDAQ companies with December fiscal year-ends as of the end of 2025. It found that 53 companies, or 2.1%, received non-appropriate audit opinions on their financial statements, down from 56 companies (2.3%) a year earlier, Yonhap and Seoul Economic Daily reported. [ 1 , 2 ]
Non-appropriate audit or review opinions on internal accounting controls were issued to 70 companies (2.8%), down from 75 (3.1%) the previous year. The association said the internal accounting non-appropriate rate, which stood at 3.8% in 2020, was 3.2% in 2021 through 2023 and 3.1% in 2024, reached its lowest level in six years at 2.8%. [ 1 , 2 ]
By company size, 25 companies with assets of 100 billion won or more (1.5%) received non-appropriate internal accounting opinions, down from 31 (1.9%). Among smaller companies with assets under 100 billion won, which receive a review rather than an audit, non-appropriate cases rose to 45 (5.3%) from 44. The two documents give different prior-year rates for that smaller group: Yonhap puts the 2024 rate at 4.2%, while Seoul Economic Daily puts it at 5.2%. [ 1 , 2 ]
The association said none of the 201 listed companies with assets of 2 trillion won or more received a non-appropriate opinion on either financial statements or internal accounting controls for a second consecutive year. Among them, all 197 subject to consolidated internal accounting control audits received appropriate opinions, which the association said confirms that group-level internal control at large listed companies has operated steadily since consolidated audits were introduced in the 2023 business year. [ 1 , 2 ]
Internal self-assessment moved closer to external auditors' findings, the association said. Of the 70 companies whose external auditor issued a non-appropriate internal accounting opinion, management itself assessed controls as non-appropriate in 20.0% of cases, up from 8.0% a year earlier, while audit committees or auditors did so in 22.9%, up from 10.7%. The association called the narrowing gap a sign of improved self-checking, but said many companies still differ from their external auditors and urged closer self-evaluation of weak internal controls. [ 1 , 2 ]
Seoul Economic Daily reported that accounting issues cited as reasons for non-appropriate opinions fell 15.9% to 106 cases, while internal control issues rose 7.8% to 166 cases. Inadequate controls over the financial statement preparation process were the largest single category at 38 cases, or 22.9%, and the association said practical improvements such as stronger settlement infrastructure and staffing are needed. [ 2 ]
Why it matters
Audit opinions are a signal investors and regulators use to judge how reliably listed companies report their finances. The association said the data show stricter internal accounting certification taking hold among larger firms, while it flagged that control weaknesses remain more common at smaller, review-only companies.
Key facts
- The Korea Listed Companies Association analysed 2,485 KOSPI and KOSDAQ companies with December fiscal year-ends as of end-2025. [ 1 , 2 ]
- 53 companies (2.1%) received non-appropriate audit opinions on their financial statements, down from 56 (2.3%) a year earlier. [ 1 , 2 ]
- 70 companies (2.8%) received non-appropriate audit or review opinions on internal accounting controls, down from 75 (3.1%). [ 1 , 2 ]
- The internal accounting non-appropriate rate fell to its lowest level in six years, from 3.8% in 2020. [ 1 , 2 ]
- Among companies with assets of 100 billion won or more, non-appropriate internal accounting opinions fell to 25 (1.5%) from 31 (1.9%). [ 1 , 2 ]
- Among companies with assets under 100 billion won, which receive a review rather than an audit, non-appropriate cases rose to 45 from 44. [ 1 , 2 ]
- None of the 201 listed companies with assets of 2 trillion won or more received a non-appropriate opinion for a second consecutive year, and all 197 subject to consolidated internal accounting audits received appropriate opinions. [ 1 , 2 ]
- Accounting issues cited as reasons fell 15.9% to 106 cases, while internal control issues rose 7.8% to 166 cases, of which 38 (22.9%) concerned the financial statement preparation process. [ 2 ]
Confirmed by several sources
- 53 listed companies (2.1%) received non-appropriate audit opinions on their 2025 financial statements, down from 56 (2.3%) the previous year. [ 1 , 2 ]
- 70 listed companies (2.8%) received non-appropriate internal accounting control opinions, down from 75 (3.1%), the lowest rate in six years. [ 1 , 2 ]
- Companies with assets of 100 billion won or more saw non-appropriate internal accounting opinions fall to 25 (1.5%) from 31 (1.9%). [ 1 , 2 ]
- No company among the 201 listed firms with assets of 2 trillion won or more received a non-appropriate opinion on either financial statements or internal accounting controls for a second consecutive year. [ 1 , 2 ]
- Manager self-assessments of non-appropriate internal accounting controls rose to 20.0% from 8.0%, and audit committee or auditor findings rose to 22.9% from 10.7%. [ 1 , 2 ]
Still unclear
- The prior-year non-appropriate rate for companies with assets under 100 billion won. Yonhap gives 44 companies at 4.2% for the previous year, while Seoul Economic Daily gives 44 companies at 5.2%; the two documents disagree on the rate.
- Whether the 2,485 companies and the counts cover the same reporting scope across both outlets. Both documents state the same total, but only the association's analysis is cited, and no breakdown of audited versus reviewed companies beyond the asset threshold is given.