[2025 National Audit] FTC Chairman Joo Byungki: "Reviewing System for Soundness Management of Prepaid Installment Businesses Including Mutual Aid Companies"

Joo Byungki, Chairman of the Fair Trade Commission, stated on the 14th regarding consumer damages related to prepaid installment businesses such as mutual aid companies, "We will review the establishment of a system in cooperation with the Financial Services Commission to manage the soundness of advance payments."

Joo Byungki, Chairman of the Fair Trade Commission, is reporting on business operations at the National Assembly's Political Affairs Committee audit of the Fair Trade Commission held on the 14th. 2025.10.14 Photo by Kim Hyunmin

At the National Assembly's Political Affairs Committee audit on this day, Chairman Joo responded to questions from Heo Young, a member of the Democratic Party of Korea, saying, "About half of mutual aid companies' advance payments are being operated without regulation, so there is no soundness management at all," and added, "If necessary, we will work with financial authorities to develop institutional supplementary measures."

Assemblyman Heo pointed out, "The amount of advance payments held by mutual aid companies reaches 10 trillion won, but under current law, only half is required to be deposited in banks or mutual aid associations, and the remaining 50% is not regulated," and emphasized, "To address regulatory blind spots and the revolving door issue, the Fair Trade Commission must take responsibility as the main supervisory authority and manage this properly."

Assemblyman Choo Kyungho also stressed, "More than half of prepaid installment businesses, including mutual aid companies, have a solvency ratio below 100%, and a significant number are exchanging funds with related parties," and added, "To prevent advance payments from being diverted like private coffers, it is necessary to revise the regulations."

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