How are the financial statements of a company about to list verified?

A company preparing to list undergoes an accounting audit by an auditor designated by the Securities and Futures Commission and, if it meets certain criteria, a financial statement review by the Financial Supervisory Service and the Korean Institute of Certified Public Accountants.

If serious accounting fraud is found in the review, it is converted into an audit inspection, and if the inspection results in a sanction for 'gross negligence or worse', the listing review is rejected. Prompted by cases in which questions were raised about companies' financial condition, for example after their share prices plunged right after listing, the financial authorities have strengthened financial statement reviews of companies planning to list since 2025.