The Quoted 800,000 Won, the Bill Was 5 Million... Bereaved Families of 'No-Funeral-Room Funerals' Suffer Twice

In March this year, Mr. Park (71) held a funeral for his father and decided on a no-funeral-room service in accordance with his father's will. After years of paying over 3 million won per month in hospital and caregiving fees, the "no-funeral-room package" priced in the 800,000 won range seemed like a reasonable choice. However, after the funeral, the final bill amounted to 5 million won. This was because the funeral service provider persistently recommended upgrading to a high-priced burial shroud and urn, saying, "Shouldn't we honor his final journey with proper respect?" Park confessed, "It was difficult to argue about costs as a bereaved family member."

The entrance of a funeral hall in downtown Seoul. Recently, about half of the bereaved families visiting this funeral hall have been opting for 'no-funeral-room funerals' without setting up a funeral room. Photo by Hosoo Park

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As high inflation and the rise of single-person households spread, no-funeral-room funerals-which omit setting up a funeral room and simplify procedures-are emerging as a practical option. However, side effects are surfacing, such as an opaque cost structure and excessive additional charges. There are growing concerns that some companies' sales tactics are putting an added burden on bereaved families.

According to the Anti-Corruption & Civil Rights Commission on April 24, there were 551 funeral-related complaints filed between January 2020 and March last year. Excluding 2020-2021, when funeral procedures were simplified due to the COVID-19 pandemic, there have been an average of more than 130 cases annually. In 2022 alone, there were 133 cases, more than double the 52 cases in the previous year. Most complaints centered on "additional charges not included in the contract" and "being forced to purchase specific items."

A look at these complaints reveals that many point out the lack of transparent pricing for no-funeral-room services. One bereaved family member said, "During the consultation, they only showed a price list with items labeled 'Shroud 1' and 'Shroud 2,' pushing us to choose," expressing frustration. Ryu (69), who experienced a funeral this January, also lamented, "The bait product is inexpensive, but the high-end shroud they strongly recommend out of respect for the deceased costs over 5 million won per set."

The reason funeral costs rise during the process is rooted in the industry's structural downturn. According to the Fair Trade Commission, the number of mutual aid (funeral) companies dropped from 214 in 2016 to just 76 this year, after plummeting during the COVID-19 period. An industry insider stated, "Even for no-funeral-room funerals, the normal final amount should be around 2.5 to 3 million won, considering minimum labor costs and basic supplies. However, as competition intensifies among companies, they lure families with unrealistic ultra-low-price ads and then make profits by selling additional options on site. This practice has become widespread."

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The same issues are being pointed out by those working at funeral sites. An employee at a funeral hall in Dongdaemun-gu, Seoul, said, "Last month, we held 15 funerals, and about half of them were no-funeral-room services. No-funeral-room funerals are not profitable because there is little to no income from room rental fees or food sales. Due to the economic downturn, companies try to make up for this by pushing product sales."

Online, it is easy to find excessive advertising for no-funeral-room funerals, often promoting prices in the range of 650,000 to 900,000 won. However, when an actual estimate is provided, fees for using the mortuary, encoffining, and cremation are charged separately as essential items. If a transport vehicle is used, additional charges and surcharges are added for any distance beyond the basic range, further increasing the total cost. An employee at a funeral hall in Yeongdeungpo-gu stated, "If someone passes away at home, body transport and handling alone add about 700,000 won. Realistically, it is difficult to conduct a funeral for around 1 million won."

While the trend toward simplified funerals is inevitable, there are calls for greater transparency in the cost structure. Siwol Kim, professor of consumer studies at Konkuk University, emphasized, "It is not just about lowering prices, but also about introducing a price labeling system that clearly presents costs in advance and a standard pricing system that transparently discloses additional cost structures. Institutional measures to ensure bereaved families' right to choose are essential for the establishment of a healthy funeral culture."

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