XBRL spearheads trust and transparency in Korean financial landscape
In a recent interview with Mr Lee Byungrhae (이 병 래 ), Secretary General of XBRL Korea and Vice Chairman of the Korean Institute of Certified Public Accountants, he highlighted the pivotal role of XBRL expansion in fortifying global trust, addressing the “Korea discount,” (international valuation gap) and enhancing corporate transparency.
With Korea expanding the use of XBRL, Lee anticipates heightened transparency of domestic company disclosures – facilitating both efficient local supervision and analysis by international investors.
The integration of XBRL into the financial authorities’ surveillance is expected to strengthen monitoring for accounting fraud, processing, and supervision. Lee foresees a significant opportunity for constant monitoring and greater accounting transparency for all companies.
The move towards enabling the automatic conversion of Korean disclosures to English using XBRL also opens avenues for increased foreign investment. Lee highlighted the potential benefits for investors, as details like lawsuits, related party transactions, and contingency provisions, when reported and converted into a database, provide clearer insights for investment decisions.
As Korea’s regulators continue to advance XBRL adoption, the financial landscape in Korea is poised for enhanced trust, transparency, and attractiveness to global investors.
Read the story here (in Korean).
