Prepaid Funeral Service Closure Bill Clears National Assembly Subcommittee

A bill revising South Korea’s installment transaction law passed a subcommittee of the National Assembly’s Political Affairs Committee on May 11. The measure is aimed at preventing consumer damage when prepaid installment transaction operators, including funeral service companies, receive advance payments and then abruptly close or have their registration canceled. The bill focuses on protecting money paid regularly by consumers before services are provided. Because prepaid installment transactions collect funds in advance, sudden business closures or registration cancellations can lead directly to consumer losses. If the bill continues through the National Assembly process, safeguards for advance payments and damage prevention for users of such services are expected to be strengthened. Source: mk.co.kr