Politics · South Korea · 1 hr ago
Seoul Finds Violations at Eight Prepaid Funeral and Travel Firms
Seoul found rule violations at eight prepaid funeral and travel companies after inspecting 13 firms through September.
The violations included unpaid cancellation refunds, misleading customers and failing to protect money paid in advance.
The city took 21 administrative actions, including referrals for investigation and action by the Fair Trade Commission, and cancelled one company’s registration.
These firms collect money before providing services, so protecting customers’ advance payments matters if a company runs into financial trouble.
From September 2027, a revised law will limit certain loans or credit given to owners, executives and related companies to half of a firm’s capital.
Seoul says it will continue checking firms’ finances and compliance, and take further action if it finds more violations.
Seoul said it found legal violations at eight prepaid funeral and installment travel firms.
The violations included failing to pay cancellation refunds, misleading consumers to induce transactions and failing to protect advance payments.
The city inspected 13 firms through September and imposed 21 administrative measures.
The measures included one referral for investigation, one request for action by the Fair Trade Commission and one registration cancellation.
Seoul said it will continue monitoring firms showing signs of financial weakness and check whether they comply with corrective measures.
- Who
- The Seoul Metropolitan Government and eight prepaid funeral and installment travel firms.
- What
- Seoul found violations involving cancellation refunds, consumer deception and unprotected advance payments, and imposed 21 administrative measures.
- When
- The findings were announced on October 25, 2026. The inspections covered the period through September.
- Where
- Seoul.
- Why
- The city said it checked firms’ compliance with rules on protecting advance payments and paying cancellation refunds.
This story does not have two clearly opposing sides.
Seoul inspected 13 local prepaid installment transaction firms for compliance with rules on protecting advance payments and paying cancellation refunds.
Seoul and the Fair Trade Commission held compliance training for 42 local firms.
Seoul announced that it had found violations at eight firms and imposed 21 administrative measures.
- Firms inspected
- 13
- Firms with violations
- 8
- Administrative measures
- 21
- Investigation referral
- 1
- Request for Fair Trade Commission action
- 1
- Registration cancellation
- 1
1 source
What people are saying
As the prepaid installment transaction market has grown to 11 trillion won, the importance of businesses’ financial soundness and management of advance payments has also increased.
We will strengthen guidance, inspections and education for businesses so that the revised system takes root steadily in the field.