Cancellation of Consumer Damage Compensation Insurance Contract... Cancellation of Goryeo Sangjo Registration

Fair Trade Commission Discloses Major Information Changes of Subscription Service Companies in Q3

Source=Korea Fair Trade Commission

[Asia Economy Reporter Moon Chaeseok] The Fair Trade Commission announced on the 27th that Goryeo Sangjo was deregistered after terminating its consumer damage compensation insurance contract.

The FTC revealed this in the major information changes for the third quarter of prepaid installment transaction businesses (funeral service companies) disclosed that day.

The FTC explained that Goryeo Sangjo showed disqualifying reasons during the third quarter and terminated its consumer damage compensation insurance contract.

The FTC stated that since there have been cases where deregistered or closed funeral service companies illegally withdrew advance payments or failed to maintain the legally required deposit ratio, consumers should frequently check the operating status of contracted funeral service companies and whether advance payments are secured.

The operating status of funeral service companies, details of advance payment deposits, and security status can be checked on the 'Naesangjo Chajwo' website.

Source=Korea Fair Trade Commission

With the deregistration of Goryeo Sangjo, the number of registered funeral service companies stood at 81 as of the end of last month, one less than in the second quarter.

When a funeral service company closes, consumers can receive 50% of their payments as damage compensation or use the 'Naesangjo Geudaero Service,' which allows them to receive products similar to their existing funeral service products.

Lee Seunghye, Director of the Installment Transaction Division at the FTC, said, "The FTC plans to actively cooperate with local governments, advance payment security institutions, and other related organizations to thoroughly inspect illegal acts such as unauthorized withdrawal of deposits by funeral service companies and proactively prevent consumer damage."

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