In Korea, 2011 amendment to the Korean Commercial Code adopted a provision of the accounting principles by referring to Japanese Corporation Act. Article 446-2 of the Korean Commercial Code requires a stock corporation to be in accordance with the generally fair and proper accounting practices, excepted as otherwise provided by the Code and its Presidential Decree. This Article will contribute to eliminating the confusion which may arise out of the difference between the above practices and the accounting standards prescribed only by the KCC. Since Article 446-2 is intented to be applied only to stock corporations, the Article is assumed to be superior to Article 29(2) in providing legal basis for using corporate accounting standards. The Act on External Audit of Stock Companies mandates a stock corporation with total assets of at least 10 billion Korean Won to prepare the financial statements in accordance with K-IFRS or K-GAAP. Article 446-2 is appled to small and medium sized enterprises(SMEs) of which the purpose of accounting is usually to file tax return or prepare tax declaration. Therefore, if the Enforcement Decree of the Korean Commercial Code permits the SMEs to do tax accounting, the SMEs will lighten the burden of doing corporate accounting which is separate and distinct from accounting for tax purposes. Recently, the borderless or foreign investments ask for international harmonization and convergence of accounting standards. The K-IFRS is a word-for-word translation of the IFRS issued by the International Accounting Standards Board(IASB). K-IFRS is required for all listed corporations and unlisted financial institutions since 2011. The IFRS falls within “the generally fair and proper accounting practices” and SMEs may voluntarily adopt K-IFRS.