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On March 29, 2026, the Financial Supervisory Service (FSS) of South Korea announced its 2026 accounting audit and inspection operations plan, designed to advance capital market modernisation through enhanced reliability of accounting information. The FSS has established three core strategic directions for 2026. First, it will adopt a zero-tolerance approach to accounting fraud to support capital market advancement, including accelerated removal of poorly performing companies through intensive monitoring and rigorous inspections of high-risk entities, development of a medium to long-term roadmap to shorten audit and inspection cycles, and enhanced coordination between penalty authority adjustments and responses to unfair trading and accounting violations. Second, the FSS will advance audit supervision processes to enhance credibility, including strengthened defence rights and concrete criteria for assessing violation motives, improved internal accounting management system inspections and rapid thematic accounting issue reviews, and expanded use of new inspection systems with open application programming interface (API) access to inspection findings. Third, the FSS will strengthen auditor inspections and supervision to improve audit quality, including risk-based auditor selection and strict penalties for deficient audits, mandatory installation of management oversight mechanisms and expanded disclosure requirements, and public disclosure of quality management evaluation results to encourage capability enhancement. The FSS plans to conduct financial statement audits and inspections on 170 listed companies and perform auditor inspections on 10 accounting firms in accordance with these strategic directions. The detailed implementation plan is available in the attached documentation.