Gyowon Life Surpasses 400 Billion Won in Advances... Quadrupled in 3 Years

Achieved 408.3 Billion KRW in Advance Payments by End of June, Up 57.2% Year-on-Year

[Asia Economy Reporter Kim Cheol-hyun] Kyowon Life announced on the 7th that, according to the analysis of its performance in the first half of this year, it surpassed 800,000 retained members and achieved a prepaid fund scale of 408.3 billion KRW. This represents a 57.2% increase compared to the same period last year. Sales grew by 34.3% to 10.9 billion KRW compared to the same period last year.

Kyowon Life's prepaid funds have shown high growth every year, starting with surpassing 100 billion KRW in 2017, reaching 202.4 billion KRW at the end of 2018, and 328 billion KRW at the end of 2019. It has recorded a remarkable growth rate, increasing more than fourfold in three years. In terms of prepaid fund scale, it ranks 5th among all funeral service companies.

Kyowon Life cited the main factors driving this solid growth as continuously strengthening financial soundness based on differentiated brand competitiveness to enhance trust. At the end of last year, Kyowon Life increased its capital from 5 billion KRW to 5.975 billion KRW through capital expansion. This is 400% higher than the 1.5 billion KRW capital standard for funeral service companies.

Since the capital increase, Kyowon Life's financial soundness has been further strengthened. This is because it has increased its asset size based on the growth of prepaid funds while securing stable profitability. In particular, the increased assets have contributed to raising the solvency ratio, thereby enhancing financial soundness. Currently, Kyowon Life's solvency ratio stands at 101%, exceeding the industry average of 91%. The solvency ratio is one of the indicators showing a funeral service company's ability to refund prepaid funds to subscribers. Additionally, Kyowon Life has further strengthened capital stability by establishing a guarantee system through payment guarantee contracts with two first-tier banks to protect customer payments.

Also, Kyowon Life is showing stability in profitability by expanding its product lineup through collaboration with various partners and establishing new revenue models such as funeral halls. Recently, it launched a Life Care service that allows customers to choose one from wedding, cruise travel, education, or daily necessities in addition to funeral services when subscribing to a product, receiving positive responses. Along with this, it operates five funeral halls in four regions nationwide, including Yeongdeungpo in Seoul, Pyeongtaek, and Hwaseong, further strengthening synergy with funeral services.

A Kyowon Life official said, "In a situation where restructuring in the funeral service industry is intensifying due to closures and mergers, the efforts to build trust with customers by presenting differentiated services based on stable financial soundness seem to be reflected in the results." He added, "Going forward, Kyowon Life will grow into a total life care specialized company that offers customized services according to life cycles, not only funeral services."

This content was produced with the assistance of AI translation services.