– Two businesses filed for closure applications –
July 29, 2026
The Korea Fair Trade Commission (KFTC, Chairperson Biung-Ghi Ju) has released changes in key information regarding prepaid installment service providers for the second quarter of 2026.
As of the end of June 2026, two prepaid installment service providers filed applications for business closure, reducing the number of businesses in normal operation from 76 in the previous quarter to 74.
During the second quarter of 2026, a total of 10 changes to key business information were reported by eight companies, including changes to paid-in capital, company names, and representative directors.
Goi Funeral Research Institute Co., Ltd. and Coway Life Solution Co., Ltd. increased their paid-in capital. Kyowon Life Co., Ltd. expanded its consumer compensation insurance coverage by adding one more bank to its existing four bank payment guarantee providers, bringing the total to five. SJ Forestry Cooperative Mutual Aid Co., Ltd. changed its corporate name to Forestry Cooperative Life Co., Ltd. Representative directors were changed at Bumosarang Co., Ltd., Kyowon Life Co., Ltd., and DS Life Co., Ltd. Sono Station Co., Ltd. changed both its representative director and email address, while the Sogong Lounge branch of Lotte JTB Co., Ltd. was closed.
Consumers planning to enter into prepaid installment contracts, such as prepaid funeral service plans or installment-based travel products, are advised to carefully review the business status of the service provider and announcements issued by consumer compensation guarantee institutions, including mutual aid associations and banks. Doing so can help prevent losses resulting from business closures or registration cancellations. In particular, consumers should exercise caution when dealing with businesses that frequently change their corporate name or address, as such changes may indicate financial instability or an increased risk of business suspension.
Consumers should also be aware that prepaid installment service providers that have not entered into consumer compensation insurance arrangements—such as mutual aid agreements or bank payment guarantee agreements—do not provide a safeguard for refunding prepaid amounts if the business ceases operations. Extra caution is therefore advised when dealing with such businesses.
If a business providing prepaid funeral services or installment-based travel products closes after consumers have entered into a prepaid installment contract and made payments, consumers may receive compensation equivalent to 50 percent of the prepaid amount through the relevant consumer compensation insurance institution. In addition, consumers who have received such compensation may continue using prepaid funeral services without additional cost by selecting another funeral service provider through the "Keep My FuneralPlan"service(https://www.mysangjo.or.kr/web/service/introduce.do).
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