BDO is pleased to announce the merger of its firm in Korea, BDO E-Hyun Accounting Corporation (EAC), with Sungto Accounting Corporation, effective 29 March 2019. The newly-merged firm will operate under the name BDO Sungto-Ehyun Limited with John G.S. Park as its CEO.
This strategic merger will give BDO in Korea a leading position in a highly competitive market.
Sungto Accounting Corporation’s revenues have seen an average annual increase of 25% since 2000 and, with its headquarters in Seoul, the merged firm adds three further offices in Busan, Changwon, and Daegu. Founded in 2007, BDO’s current firm in Korea joined the organisation in 2016, having achieved 20% annual growth over the previous 10 years.
This merger is considered exceptional in the Korean professional services environment because it is a merger of organised single firms rather than a combination of independent firms with multiple teams. Besides, it is a very positive development as the government is in the process of reforming the accounting profession to improve audit quality and it is likely to trigger additional merger activity.
Having access to BDO’s expertise globally will allow the newly merged firm to expand its service offering to include domestic companies investing in overseas markets and to deliver balanced growth across all service lines, including advisory and corporate finance. Its growth ambitions include reaching a headcount target of 500 professionals by 2025, together with revenues of KRW 150 billion.
John Park, the new CEO, comments: “Until now, Korean companies have lacked choice when seeking the right accountancy advisers for them, due to independence requirements and to dominance by our larger competitors. I am very proud to be leading a new and dynamic firm with a clear vision and strategy and which is now a very strong contender in the Korean market".
Stephen Darley, BDO’s CEO Asia Pacific, adds: “This is a very pleasing development for BDO in Korea. The merger will add significantly to its audit credentials, particularly those required by the local regulator (FSS), placing it in good stead to benefit from the recently instituted mandatory audit rotation. The merger demonstrates the power and recognition of the BDO brand across Asia, which will assist BDO in Korea in achieving its ambitious growth targets and in providing a continuous quality service to its clients.”