NATIONAL ACCOUNTING ACT
Act No. 8636, Oct. 17, 2007
Amended by Act No. 8852, Feb. 29, 2008
Act No. 9279, Dec. 31, 2008
Act No. 10289, May 17, 2010
Act No. 11690, Mar. 23, 2013
Act No. 11885, Jul. 16, 2013
Act No. 12844, Nov. 19, 2014
Act No. 14463, Dec. 27, 2016
Act No. 14839, Jul. 26, 2017
Act No. 15285, Dec. 26, 2017
Act No. 17339, Jun. 9, 2020
Act No. 21065, Oct. 1, 2025
CHAPTER I GENERAL PROVISIONS
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.
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: |
| 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:
| 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> |
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]
CHAPTER II STANDARDS FOR ACCOUNTING TREATMENT
| 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> |
CHAPTER III SETTLEMENT OF ACCOUNTS
| 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); |
| a. | Statement of financial position; |
| b. | Statement of financial management; |
| c. | Statement of changes in net assets; |
[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; |
| 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; |
| 3. | Other documents prescribed by Presidential Decree. |
| (3) | The settlement of revenues and expenditures in the State's report on settlement of accounts shall be accompanied by the following documents in addition to the documents under paragraphs (1) and (2): |
| 1. | Statement of consolidated fiscal balance; |
| 2. | Statement of management of funds in integrated accounts and use of proceeds. |
| (4) | Financial statements under subparagraph 3 of Article 14 shall be accompanied by the following documents: |
| 1. | Report on management of national debts; |
| 3. | Other documents prescribed by Presidential Decree. |
| (5) | Detailed matters regarding preparation of gender-sensitive settlement of accounts under paragraph (1)7, settlement statement of accounts of greenhouse gas reduction-sensitive budget under subparagraph 7-2 of that paragraph, settlement statement of accounts of gender-sensitive fund under paragraph (2)2, and settlement statement of accounts of the greenhouse gas reduction-sensitive budget under subparagraph 2-2 of that paragraph shall be prescribed by Presidential Decree. <Amended on May 17, 2010; Jun. 15, 2021> |
[This Article Added on Dec. 31, 2008]
| 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> |
CHAPTER IV SUPPLEMENTARY PROVISIONS
| 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.
ADDENDA <Act No. 8636, Oct. 17, 2007>
Article 1 (Enforcement date)
This Act shall enter into force on January 1, 2009; provided, Article 2 of the Addenda shall enter into force on the date of its promulgation. Article 2 (Establishment of working committee for improvement of national accounting system)
| (1) | A working committee for the improvement of the national accounting system (hereafter in this Article referred to as the "Working Committee") shall be established and operated for the early establishment of the double-entry bookkeeping and accrual-based accounting system introduced by the enforcement of this Act and the establishment of a new national accounting system. |
| (2) | The Working Committee shall be comprised of the following members: |
| 1. | One Vice Minister of Finance and Economy designated by the Minister of Finance and Economy; |
| 2. | One public official designated by the Chairperson of the Board of Audit and Inspection of Korea from among public officials of Grade III of the Board of Audit and Inspection of Korea or public officials who are members of the Board of Audit and Inspection's Senior Executive Service; |
| 3. | One public official designated by the Minister of Planning and Budget from among public officials of Grade III of the Ministry of Planning and Budget or public officials who are members of the Senior Executive Service; |
| 4. | One public official designated by the Minister of Government Administration and Home Affairs from among public officials of Grade III of the Ministry of Government Administration and Home Affairs or public officials who are members of the Senior Executive Service; |
| 5. | One certified public accountant commissioned by the Minister of Finance and Economy from among those recommended by accounting-related organizations; |
| 6. | One person who has had at least 10 years of experience in accounting-related affairs of the Government or a public institution and who is commissioned by the Minister of Finance and Economy; |
| 7. | Not more than 6 persons who majored in accounting or finance at a university and have held a position of associate professor or higher, or any equivalent position, at a university or an accredited research institute for at least 10 years, and who are commissioned by the Minister of Finance and Economy. |
| (3) | The chairperson of the Working Committee shall be jointly assumed by the following persons: |
| 1. | The person under paragraph (2) 1; |
| 2. | One person elected by and from among members under paragraph (2) 5 through 7. |
| (4) | The chairperson of each committee shall represent the committee and have general supervision and control of its business affairs, including convening the committee. |
| (5) | The Working Committee may operate a working-level task force team comprised of employees in charge of accounting under the control of the head of a central government office or a fund management entity in order to efficiently promote its business affairs. |
| (6) | Heads of central government offices and fund management entities shall provide data relevant to accounting under the jurisdiction of each of them and present their opinions on accounting treatment to the Working Committee and the working-level task force team to have such data and opinions reflected in the national accounting system. |
| (7) | The Government may subsidies expenses necessary for efficiently conducting the business affairs of the Working Committee within the budget. |
| (8) | Matters necessary for the operation and business affairs of the Working Committee shall be determined by the chairperson, subject to resolution by the Working Committee. |
| (9) | The Working Committee shall exist until December 31, 2008. |
Article 3 (Applicability to preparation and submission of financial reports)
The preparation and submission of financial reports under this Act shall begin to apply to cases where settlement of accounts is made for the fiscal year 2009.
ADDENDA <Act No. 8852, Feb. 29, 2008>
Article 1 (Enforcement date)
This Act shall enter into force on the date of its promulgation; provided, among the statutes amended under Article 6 of the Addenda, those parts amending the statutes that have already been promulgated before the enforcement of this Act but whose enforcement dates have not yet arrived shall enter into force on the enforcement date of each such statute.
ADDENDA <Act No. 9279, Dec. 31, 2008>
| (1) | (Enforcement date) This Act shall enter into force on January 1, 2009. |
| (2) | (Applicability to preparation of reports on settlement of accounts) The amended provisions of Articles 13 through 15 and 15-2 begin to apply to cases where settlement of accounts is made for the fiscal year 2009; provided, that the amended provisions of Article 15-2 (1) 7 and (5) shall begin to apply to cases where settlement of accounts is made for the fiscal year 2010. |
ADDENDA <Act No. 10289, May 17, 2010>
| (1) | (Enforcement date) This Act shall enter into force on the date of its promulgation. |
| (2) | (Applicability to attachment of gender-sensitive fund settlement of accounts) The amended provisions of Article 15-2 (2) and (5) shall begin to apply to gender-sensitive fund settlement of accounts for fiscal year 2011. |
ADDENDA <Act No. 11690, Mar. 23, 2013>
Article 1 (Enforcement date)
| (1) | This Act shall enter into force on the date of its promulgation. |
ADDENDUM <Act No. 11885, Jul. 16, 2013>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 12844, Nov. 19, 2014>
Article 1 (Enforcement date)
This Act shall enter into force on the date of its promulgation; provided, amendments to statutes, which were promulgated before the enforcement of this Act but the date on which it enters into force has not yet arrived, among statutes amended by Article 6 of the Addenda, shall enter into force on the enforcement date of the respective statute.
ADDENDA <Act No. 14463, Dec. 27, 2016>
Article 1 (Enforcement date)
This Act shall enter into force on January 1, 2017.
Article 2 (Applicability to attachments to report on settlement of accounts)
The amended provisions of Article 15-2 (1) 1-2 shall begin to apply to the settlement of revenues and expenditures account for fiscal year 2017.
ADDENDA <Act No. 14839, Jul. 26, 2017>
Article 1 (Enforcement date)
This Act shall enter into force on the date of its promulgation; provided, the amended provisions of each statute which was promulgated before this Decree enters into force, but the enforcement date of which has not yet arrived, among the statutes amended under Article 5 of the Addenda, shall enter into force on the date such Act is to enter into force.
ADDENDA <Act No. 15285, Dec. 26, 2017>
Article 1 (Enforcement date)
This Act shall enter into force on January 1, 2018.
Article 2 (Applicability to accompaniment of statement of execution of each project subject to control of total project costs)
The amended provisions of Article 15-2 (1) 8-2 shall begin to apply to the settlement of revenues and expenditures account for the fiscal year 2018.
ADDENDUM <Act No. 17339, Jun. 9, 2020>
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
ADDENDA <Act No. 18241, Jun. 15, 2021>
Article 1 (Enforcement date)
This Act shall enter into force on January 1, 2022.
Article 2 (Applicability to accompaniment of settlement statement of accounts of greenhouse gas reduction-sensitive budget and settlement statement of accounts of greenhouse gas reduction-sensitive fund)
The accompaniment of settlement statement of accounts of greenhouse gas reduction-sensitive budget under the amended provisions of Article 15-2(1)7-2 and the accompaniment of settlement statement of accounts of greenhouse gas reduction-sensitive fund under the amended provisions of paragraph (2)2-2 of that Article shall begin to apply to the settlement of accounts for the fiscal year 2023. Article 3 (Applicability to accompaniment of plans to use net budget surplus)
The accompaniment of details of, and plans to use net budget surplus under the amended provisions of Article 15-2(1)11-2 shall begin to apply to the settlement of accounts for the fiscal year 2021.
ADDENDA <Act No. 18585, Dec. 21, 2021>
Article 1 (Enforcement date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
ADDENDA <Act No. 19544, Jul. 18, 2023>
Article 1 (Enforcement date)
This Act shall enter into force 6 months after the date of its promulgation. (Proviso Omitted.)
ADDENDA <Act No. 20402, Mar. 26, 2024>
Article 1 (Enforcement date)
This Act shall enter into force on January 1, 2025.
Article 2 (Applicability to preparation of cash flow chart)
The amended provisions of subparagraph 3d of Article 14 shall begin to apply to the settlement of accounts for the fiscal year 2025.
ADDENDA <Act No. 21065, Oct. 1, 2025>
Article 1 (Enforcement date)
This Act shall enter into force on the date of its promulgation; provided, the amendments to statutes, which are amended under Article 7 of the Addenda and were promulgated before the enforcement of this Act but whose enforcement dates have not yet arrived, shall enter into force on the respective enforcement dates of such statutes, and the amended provisions under the following subparagraphs shall enter into force on the dates specified in the relevant subparagraph: | 1. | The amended provisions under the following items shall enter into force on January 2, 2026; provided, among the statutes amended in accordance with Article 7 of the Addenda (limited to the parts related to the amended provisions of items a and b), the amendments to statutes that were promulgated before the enforcement date prescribed in the main clause but whose enforcement dates have not yet arrived shall enter into force on the respective enforcement dates of such statutes: |
| b. | The amended provisions of Articles 12(2), 19(3), 22, and 29(2) (limited to the parts relating to the Minister of Finance and Economy and the Ministry of Finance and Economy); |
| c. | Statutes amended in accordance with Article 7 of the Addenda (limited to the parts related to the amended provisions of items a and b); |