SOUTH KOREA Law and Practice Contributed by: Ho Joon Moon, Tae Jung Kim, Do Kyeom Kim and Ji Geon Park, Lee & Ko
appoint an external auditor for its financial state - ments. Pursuant to the External Audit Act, individuals with a vested interest in the company cannot serve as auditors, ensuring that external audi - tors can perform their duties independently in a separate/independent capacity. 7.2 Requirements for Directors Concerning Management Risk and Internal Controls There is no specific and express legal require - ment for directors with regard to the manage - ment of risk and internal controls in a company, although they are expected (within the scope of their Fiduciary Duties) to assess and man - age risks, oversee internal controls and monitor general compliance. Specifically, the responsibilities that directors bear as trustees with respect to internal con - trols can include Fiduciary Duties, including their oversight duty described in 4.6. Legal Duties of Directors/Officers . If directors breaches these duties, they may be held liable for civil damages and subject to criminal penalties.
781 CHAMBERS.COM
Powered by FlippingBook