The current law requires any subsidy program operator who receives a subsidy of more than 300 million won to receive auditor’s verification on the settlement report and mandates the submission of the audit report prepared by an auditor for each fiscal year for any subsidy program operator who receives a subsidy of more than 1 billion won in the first fiscal year.

However, since the size of national funds financed for subsidy programs is substantial, such as the total amount of national subsidies being over 80 trillion won in 2019, it is necessary to strengthen independent auditors’ audits, etc., to transparently manage national subsidies and prevent fraudulent management.

Therefore, this amendment aims to expand the scope of persons responsible for verification of settlement report and submitting the audit report by lowering the standard amount for selecting subsidy program operators subject to verification of settlement report and subsidy program operators obligated to submit an audit report to 100 million won and 300 million won, respectively (Article 27 and Article 27-2).

Accounting audit for specific business entities (Article 27-2)