In the second quarter of this year, the number of operating prepaid installment companies decreased to 74 as two firms filed for bankruptcy.
The Fair Trade Commission (FTC) released a report on July 29 detailing major changes in the information of prepaid installment companies for the second quarter of 2026. The FTC publishes updates on significant changes in the information of these companies each quarter to prevent consumer harm.
According to the FTC, Daeno Welfare Business Group and Agape Life, both prepaid installment companies, filed for bankruptcy in May and June, respectively. Although the applications were submitted in the second quarter, the actual bankruptcy proceedings will take place in the third quarter.
Eight companies among the prepaid installment firms reported changes in key information such as representatives and addresses. Goijang Funeral Research Institute and Coway Life Solutions increased their capital, while Kyowon Life expanded its debt guarantee banks from four to five, altering its consumer compensation insurance provider.
Additionally, changes in representatives or contact information were noted for Parents' Love, Kyowon Life, DS Life, and Sonos Station, and the Lotte JTB's Sogong Lounge branch was closed.
The FTC emphasized the importance of carefully reviewing the operational status of companies and the announcements from consumer damage compensation insurance providers when entering into contracts for prepaid funeral services or installment travel products. It also warned that businesses frequently changing their names or addresses may pose a risk of insolvency.
Particularly, companies that do not have consumer damage compensation insurance contracts lack safeguards for consumers to recover their payments in the event of bankruptcy or other incidents, necessitating extra caution, the FTC advised.
If a consumer enters into a prepaid installment contract and the business goes bankrupt after payments have been made, they can still receive compensation (50% of the prepaid amount) through the consumer damage compensation insurance provider. Furthermore, utilizing the 'My Funeral as It Is' service allows consumers to continue receiving services without additional burdens after receiving compensation.
The Fair Trade Commission (FTC) released a report on July 29 detailing major changes in the information of prepaid installment companies for the second quarter of 2026. The FTC publishes updates on significant changes in the information of these companies each quarter to prevent consumer harm.
According to the FTC, Daeno Welfare Business Group and Agape Life, both prepaid installment companies, filed for bankruptcy in May and June, respectively. Although the applications were submitted in the second quarter, the actual bankruptcy proceedings will take place in the third quarter.
Eight companies among the prepaid installment firms reported changes in key information such as representatives and addresses. Goijang Funeral Research Institute and Coway Life Solutions increased their capital, while Kyowon Life expanded its debt guarantee banks from four to five, altering its consumer compensation insurance provider.
Additionally, changes in representatives or contact information were noted for Parents' Love, Kyowon Life, DS Life, and Sonos Station, and the Lotte JTB's Sogong Lounge branch was closed.
The FTC emphasized the importance of carefully reviewing the operational status of companies and the announcements from consumer damage compensation insurance providers when entering into contracts for prepaid funeral services or installment travel products. It also warned that businesses frequently changing their names or addresses may pose a risk of insolvency.
Particularly, companies that do not have consumer damage compensation insurance contracts lack safeguards for consumers to recover their payments in the event of bankruptcy or other incidents, necessitating extra caution, the FTC advised.
If a consumer enters into a prepaid installment contract and the business goes bankrupt after payments have been made, they can still receive compensation (50% of the prepaid amount) through the consumer damage compensation insurance provider. Furthermore, utilizing the 'My Funeral as It Is' service allows consumers to continue receiving services without additional burdens after receiving compensation.
* This article has been translated by AI.
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