NATIONAL ACCOUNTING ACT

Article 1(Purpose) #

The purpose of this Act is to prescribe fundamental matters related to national accounting in order to ensure transparency in the management of national accounts, and produce and provide useful and appropriate information on public finance.

Article 2(Definitions) #

The terms used in this Act are defined as follows: <Amended on Jun. 9, 2020>

1. "Head of a central government office" means any of the following persons:

a. The head of a central administration agency established under the Constitution of the Republic of Korea, the Government Organization Act, or other statutes;

b. The Secretary General of the National Assembly, the Minister of the National Court Administration, and the Secretary General of the Department of Court Administration of the Constitutional Court, and the Secretary General of the National Election Commission;

2. "Fund management entity" means a person who is responsible for the management and operation of a fund (referring to any fund defined in subparagraph 2 of Article 3; hereafter in this subparagraph the same shall apply) under statutes (excluding persons entrusted with the management or operation of a fund);

3. Deleted. <Dec. 31, 2008>

Article 3(Scope of application) #

This Act shall apply to the following accounts and funds:

1. General accounts and special accounts under Article 4 of the National Finance Act;

2. Funds established under Article 5(1) of the National Finance Act (hereinafter referred to as "funds").

Article 4(Principles of national accounting) #

National accounting shall be conducted in compliance with the following principles:

1. National accounting shall be conducted fairly in accordance with objective data and evidence so that it can be reliable;

2. National accounting shall be conducted simply and clearly and supply sufficient information so as to make it possible to easily grasp details and results of financial activities;

3. Deleted. <Dec. 31, 2008>

Article 5(Fiscal year) #

The fiscal year of the State shall begin on January 1 and end on December 31 each year.

Article 6(Jurisdiction over business affairs regarding national accounting) #

(1) The Minister of Finance and Economy shall have general supervision and control of business affairs regarding national accounting, and the heads of central government agencies and fund management entities shall manage the business affairs regarding the accounting under their jurisdiction. <Amended on Feb. 29, 2008; Oct. 1, 2025>

(2) The head of a central government office shall, when he or she intends to enact, amend, or repeal any statute or regulation governing the business affairs under paragraph (1), consult with the Minister of Finance and Economy and the Board of Audit and Inspection of Korea. <Amended on Feb. 29, 2008; Oct. 1, 2025>

Article 7(Appointment of accounting officer) #

(1) The head of a central government office shall appoint an accounting officer to have general supervision and control of accounting affairs under their jurisdiction.

(2) An accounting officer shall perform the following duties:

1. Matters regarding accounting, such as internal control under Article 24;

2. Matters regarding accounting and settlement and analysis of accounts;

3. Guidance and supervision over public officials engaged in the duties referred to in subparagraphs 1 and 2;

4. Other matters prescribed by Presidential Decree in conjunction with the performance of accounting affairs.

(3) The appointment of an accounting officer may be substituted by the designation of a position already existing in a central government office by the head of the central government office.

Article 8 #

Deleted. <Jul. 18, 2023>

Article 9 #

Deleted. <Dec. 31, 2008>

Article 10(Relationship to other statutes) #

This Act shall take precedence over other statutes with regard to the accounting of general accounts, special accounts, and funds, and the settlement of accounts.

[This Article Wholly Amended on Dec. 31, 2008]

Article 11(Standards for national accounting) #

(1) The standards necessary for accounting treatment by the double-entry bookkeeping method according to the occurrence of economic transactions arising from the fiscal activities of the State (hereinafter referred to as "national accounting standards") shall be prescribed by Decree of the Ministry of Finance and Economy. <Amended on Dec. 31, 2008; Oct. 1, 2025>

(2) National accounting standards shall be formulated to ensure objectivity and uniformity so as to promote appropriateness in accounting and clearly state the financial position and details of financial management. <Amended on Jun. 9, 2020>

(3) Deleted. <Dec. 31, 2008>

(4) The Minister of Finance and Economy may entrust a specialized institution or organization with affairs regarding national accounting standards, as prescribed by Presidential Decree. <Amended on Feb. 29, 2008; Oct. 1, 2025>

Article 12 #

Deleted. <Dec. 31, 2008>

Article 13(Execution of settlement of accounts) #

(1) The head of a central government agency shall, for each fiscal year, prepare a consolidated settlement report (hereinafter referred to as "central government agency's report on settlement of accounts") that integrates the general accounts, special accounts, and funds under its jurisdiction, in accordance with Articles 14, 15, and 15-2.

(2) A fund management entity shall, if it is not the head of a central government office, prepare a report on settlement of accounts for the fund (hereinafter referred to as "fund's report on settlement of accounts") for each fiscal year under Articles 14, 15, and 15-2 (excluding provisions governing settlement of revenues and expenditures) and submit it to the head of the competent central government office. In such cases, a fund meeting the criteria prescribed by Presidential decree, taking into consideration the scale of fund operation, shall attach an auditor's report prepared by an accounting firm under Article 23 of the Certified Public Accountant Act to the fund's report on settlement of accounts.

(3) The Minister of Finance and Economy shall prepare a report on settlement of accounts for the State (hereinafter referred to as "State's report on settlement of accounts") by integrating a central government office's reports on settlement of accounts for each fiscal year and present it to the President for approval after it is deliberated by the State Council. <Amended on Oct. 1, 2025>

(4) Matters necessary for the method of, and the procedure for, accounting audit under the latter part of paragraph (2) shall be prescribed by Presidential Decree.

[This Article Wholly Amended on Dec. 31, 2008]

Article 14(Composition of report on settlement of accounts) #

A report on settlement of accounts shall be comprised of the following documents: <Amended on Mar. 26, 2024>

1. Outlines of settlement of accounts;

2. Settlement of revenues and expenditures (including settlement of revenues and expenditures of a fund in cases of a central government office's or the State's report on settlement of accounts, and referring to settlement of revenues and expenditures of a fund in cases of a fund's report on settlement of accounts);

3. Financial statements:

a. Statement of financial position;

b. Statement of financial management;

c. Statement of changes in net assets;

d. Cash flow charts;

4. Performance report.

[This Article Wholly Amended on Dec. 31, 2008]

Article 15(Preparation of report on settlement of accounts) #

(1) Outlines of settlement of accounts under subparagraph 1 of Article 14 shall be prepared to make it possible to plainly grasp results of execution of budget and a fund, details of financial management, and financial position by summarizing details of settlement of accounts.

(2) The settlement of revenues and expenditures under subparagraph 2 of Article 14 shall be prepared by consolidating results of execution according to the same classification as that of the budget of revenues and expenditures or the fund management plan. In such cases, the specific matters to be prepared shall be prescribed by Presidential Decree.

(3) Financial statements under subparagraph 3 of Article 14 shall be prepared in accordance with national accounting standards.

(4) Performance reports under subparagraph 4 of Article 14 shall be prepared by comparing goals of performance stated in the relevant performance plan under Article 85-6 of the National Finance Act with results of performance of the plan. <Amended on Dec. 21, 2021>

[This Article Wholly Amended on Dec. 31, 2008]

Article 15-2(Attachments to report on settlement of accounts) #

(1) The settlement of revenues and expenditures under subparagraph 2 of Article 14 (excluding settlement of revenues and expenditures of funds) shall be accompanied by the following documents: <Amended on Jul. 16 2013; Dec. 27 2016; Dec. 26 2017; Jun. 15, 2021>

1. Statement of settlement of continuing expenses;

1-2. Statement of settlement of revenues and expenditures by project;

2. Statement of execution of lump-sum appropriated projects;

3. Statement of use of revenue-offsetting expenses;

4. Statement of carryovers;

5. Statement of execution of specified carryovers;

6. Statement of management of revolving funds in special accounts for governmental enterprises;

7. Gender-sensitive settlement of accounts;

7-2. Settlement statement of accounts of the greenhouse gas reduction- sensitive budget;

8. Statement of use of reserve funds;

8-2. Statement of execution of each project subject to the control of total project costs under Article 50 of the National Finance Act;

9. Statement of investments in kind under Article 53 (2) of the National Finance Act;

10. Statement of issuance of treasury bills under Article 32 (1) of the Management of the National Funds Act and management of temporary borrowings from the Bank of Korea;

11. Statement of appropriation of the net budget surplus for the previous year under Article 90 of the National Finance Act;

11-2. Details of, and plans to use the net budget surplus under Article 90(9) of the National Finance Act;

12. Other documents prescribed by Presidential Decree.

(2) A fund's settlement of revenues and expenditures shall be accompanied by the following documents: <Amended on May 17, 2010; Jun. 15, 2021>

1. Statement of results of procurement of financial resources;

2. Gender-sensitive fund settlement of accounts;

2-2. Settlement statement of accounts of the greenhouse gas reduction-sensitive budget;

Article 16(Preparation of statement of use of reserve funds) #

(1) The head of a central government office shall prepare a detailed statement of the amount used from the reserve fund.

(2) The Minister of Finance and Economy shall consolidate the detailed statements of the use of reserve funds under paragraph (1) and prepare a comprehensive statement of the amounts used from the reserve fund. <Amended on Oct. 1, 2025>

[This Article Wholly Amended on Dec. 31, 2008]

Article 17 #

Deleted. <Dec. 31, 2008>

Article 18 #

Deleted. <Dec. 31, 2008>

Article 19 #

Deleted. <Dec. 31, 2008>

Article 20 #

Deleted. <Dec. 31, 2008>

Article 21 #

Deleted. <Dec. 31, 2008>

Article 22 #

Deleted. <Dec. 31, 2008>

Article 23 #

Deleted. <Dec. 31, 2008>

Article 24(Internal control) #

(1) In order to evaluate the appropriateness of accounting treatment and the reliability of reports on settlement of accounts, the head of a central government office shall authorize the accounting officer to conduct internal control, such as control and supervision of such matters. <Amended on Dec. 31, 2008; Jun. 9, 2020>

(2) The head of a central government office shall establish the procedures and methods necessary for internal control under paragraph (1).

(3) Fundamental matters regarding the procedures and methods under paragraph (2) shall be determined by the Minister of Finance and Economy, in consultation with the Board of Audit and Inspection of Korea. <Amended on Feb. 29, 2008; Oct. 1, 2025>

Article 25(Keeping account books) #

The head of a central government office and a fund management entity shall keep accounting books and record and manage necessary matters, as prescribed by Presidential Decree.

Article 26(Supervision over accounting treatment and preparation of reports on settlement of accounts) #

(1) The Minister of Finance and Economy shall, if necessary for proper management of national accounting affairs, assign public officials under their jurisdiction to provide on-site guidance and conduct inspections on accounting treatment and the preparation of reports on settlement of accounts, as prescribed by Presidential Decree. <Amended on Oct. 1, 2025>

(2) The Minister of Finance and Economy may prepare guidelines on settlement of accounts and notify the head of a central government office of the guidelines to ensure the proper preparation of the reports on settlement of accounts. <Amended on Oct. 1, 2025>

(3) The Minister of Finance and Economy may demand heads of relevant central government offices to furnish data necessary for the preparation of the State's report on settlement of accounts. <Amended on Oct. 1, 2025>

[This Article Wholly Amended on Dec. 31, 2008]

Article 27(Education of accounting-related public officials) #

The Minister of Finance and Economy may provide education for accounting-related public officials, etc., in order to enhance the expertise in performing national accounting affairs, as prescribed by Presidential Decree. <Amended on Feb. 29, 2008; Oct. 1, 2025>

Article 28(Responsibilities of accounting-related public officials) #

Responsibilities of accounting-related public officials, etc. shall be governed by other statutes.