Among embezzlement cases in Korean companies, 50.9% were committed by employees with less than one year of employment, which is a high figure compared to the average of 9% across 138 countries overseas.

Embezzlement occured mainly in departments that handle cash, such as accounting(60%), sales/distribution(20%), and procurement(10%).

The reasons cited for embezzlement include living expenses(37%), investment(26%), and debt repayment(22%), with the average amount for investment-related cases being 2.77 billion KRW, approximately ten times larger than the overall average of 220 million KRW

The main channels for detecting embezzlement include whistleblowers(42%), routinal monitoring(24.3%), and internal audits (21.5%).

Experts emphasize that smaller companies are more vulnerable to embezzlement due to lower reliance on systems, urging the strengthening of internal control systems.

The FSS has prepared detailed guidelines for disclosing 'embezzlement and fund fraud controls' in the ICFR Operating Status Report.

The control activities directly related to the prevention and detection of financial fraud risks must be summarized or described in full, and the inspection results must specify the department performing the inspection and the time period.

If significant deficiencies are found, remediation plans or implementation results must be documented.

However, the application period for listed companies with assets of less than KRW 100 billion and large non-financial unlisted companies has been delayed to 2026.