Registration Canceled and Closure of Three Funeral Service Companies Including Chamdaye

[Sejong=Asia Economy Reporter Kwon Haeyoung] In the fourth quarter of last year, one prepaid installment transaction operator (funeral service company) had its registration canceled, and two companies went out of business.

The Fair Trade Commission announced on the 28th that as of the end of December 2020, there were a total of 77 registered funeral service companies, a decrease of 9 compared to the same period the previous year.

In the fourth quarter of last year, Chamdaye had its registration canceled due to disqualification, and Ipyunhan Life and Dure Munhwa each went out of business due to financial difficulties.

Since the enforcement of the revised Installment Transactions Act, the number of funeral service companies has steadily decreased every year, but the number of subscribers, advance payments, and the scale of consumer damage compensation insurance contracts have continuously increased. The Fair Trade Commission advised caution as there are frequent cases where consumers fail to receive advance payments back from deposit institutions due to not promptly recognizing the closure of funeral service companies.

Consumers can easily check the business status of funeral service companies, advance payment payment details, and advance payment preservation status on the 'Naesangjo Chajwo' website.

A Fair Trade Commission official stated, "We plan to proactively prevent consumer damage by closely inspecting violations of the law such as unauthorized withdrawal of deposits by funeral service companies through active cooperation with related organizations such as local governments and advance payment preservation institutions."