2 prepaid funeral firms file for closure in Q2; Fair Trade Commission warns of frequent info changes

Two prepaid installment businesses — companies handling prepaid funeral services and savings-based travel products — filed for closure in the second quarter of this year, reducing the number of operators in normal business from 76 in the previous quarter to 74.

The Korea Fair Trade Commission disclosed the details Wednesday through its "Second Quarter 2026 Key Information Changes for Prepaid Installment Businesses" report.

As of the end of June, Daeno Welfare Project Group and Agape Life had filed for closure among prepaid installment businesses.

No new registrations, registration cancellations or ex officio deletions occurred during the second quarter. However, eight companies reported a total of 10 key information changes, covering capital, consumer damage insurance contract institutions, trade names, representatives, email addresses and branch offices.

Go Funeral Research Institute and Coway Life Solution increased their capital, while Kyowon Life added Busan Bank to its consumer damage insurance debt payment guarantee institutions, expanding the number of contracted banks from four to five.

SJ Forest Cooperative Funeral changed its trade name to Forest Cooperative Life, while Bumo Sarang, Kyowon Life and DS Life replaced their representatives. Sono Station updated both its representative and email address, and Lotte JTB closed its Seoul Sogong Lounge branch.

The Fair Trade Commission urged consumers to check a company's operating status and any notices from its consumer damage insurance institutions — such as mutual aid associations or banks — before signing a prepaid funeral or savings-based travel product contract.

The commission said particular caution is needed when dealing with businesses that frequently change their trade name or address, as such changes may signal financial instability or the risk of business suspension.

The commission said consumers must verify whether a prepaid installment business has signed a consumer damage insurance contract before entering into an agreement, as companies without such coverage have no safety net to refund payments in the event of closure or other incidents.

If a business closes, consumers can receive 50 percent of their prepaid amount as compensation through a mutual aid association or bank, the commission said, adding that those who use the "My Funeral Service as Is" program can transfer to another funeral company and continue receiving services without additional cost.