Gov't seeks closer monitoring on foreign firms' limited Korean arms

[THE INVESTOR] Limited companies operating in South Korea could be subjected to tougher monitoring standards matching that of public companies.

According to a local daily, the government will propose revisions in related regulations to require limited companies to be receive external audits, and to disclose results during the regulation session of the National Assembly in September. 

The daily, citing Ministry of Strategy and Finance and Financial Services Commission sources, reported that the planned revisions would concern limited companies with assets of 12 billion won (US$10.85 million) or more. At present, they are not required to be audited by external parties. About 90 percent of limited companies in the country have 10 billion won or less in assets. 

Related article: Degree of disclosure a stumbling block for tighter control on limited companies

The daily said that the changes would impact the South Korean operations of Google, Oxy Reckitt Benckiser, Apple, Facebook and other larger companies.

Oxy Reckitt Benckiser became a limited company in 2011, freeing it from external audits. The scandal involving humidifier disinfectants marketed by the company that led to many deaths came to public attention in April 2011.

By Choi He-suk (cheesuk@heraldcorp.com)