Politics · South Korea · 2 hrs ago
South Korea tightens rules on funeral companies’ customer funds
South Korea’s Fair Trade Commission has revised rules for prepaid funeral-service companies that manage money paid by customers in advance.
The guidance took effect on October 23, 2026, according to the article.
Companies must balance safety, access to cash and returns when investing these funds.
They must also closely review excessive investment in high-risk assets and deals that benefit controlling shareholders.
Companies holding more than 100 billion won in customer prepayments must set up a committee to review fund management.
The changes come as South Korea’s funeral-service market has grown to more than 11 million members and about 11 trillion won in prepayments.
The guidance is intended to strengthen consumer protection, though the article gives no details on further steps or enforcement.
South Korea’s Fair Trade Commission revised consumer-protection guidance for companies selling prepaid installment services, including funeral service companies.
The guidance took effect on October 23, 2026, according to the article.
Companies must balance safety, liquidity and returns when managing customers’ advance payments.
Companies holding more than 100 billion won in advance payments must establish a committee to review how the funds are managed.
The measures follow concerns that the sector’s financial-health controls have not kept pace with its growth.
- Who
- South Korea’s Fair Trade Commission and companies selling prepaid installment services, including funeral service companies.
- What
- The commission revised guidance on managing customer advance payments, including investment safeguards and a required review committee for larger companies.
- When
- The guidance took effect on October 23, 2026.
- Where
- South Korea.
- Why
- The measures aim to strengthen consumer protection amid concerns about financial-health controls in a growing market.
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- Effective date
- October 23, 2026
- Committee threshold
- More than 100 billion won in advance payments
- Market size
- About 11 trillion won in advance payments
- Market participants
- More than 11 million subscribers