75 Prepaid Installment Transaction Companies in Q3... Two Closed Down

Daeno Bokji Saeopdan and Agape Life closures finalized
FTC: "Beware of companies that frequently change their information"

Two prepaid installment transaction companies closed down and one newly registered in the third quarter, bringing the number of registered companies to 75. A prepaid installment transaction is a contract under which a customer pays for services such as funerals, weddings, or cruise travel in at least two installments over a period of two months or longer, and receives the service after paying the full amount.

On October 20, the Fair Trade Commission (FTC) announced the “Key Changes to Information on Prepaid Installment Transaction Companies in the Third Quarter of 2026.” The FTC informs the public each quarter of changes to key company information to prevent consumer harm arising from prepaid installment transactions.

One company newly registered in the third quarter of this year: Origin Tour Co., Ltd. Two companies closed down: Daeno Bokji Saeopdan Co., Ltd. and Agape Life Co., Ltd. Daeno Bokji Saeopdan Co., Ltd. and Agape Life Co., Ltd. filed notices of closure in the second quarter, but the closures were officially processed in July, during the third quarter. As a result, the number of registered prepaid installment transaction companies fell from 76 at the end of the previous quarter to 75 as of the end of September 2026. Meanwhile, The Life Co., Ltd. reported a temporary suspension of business during the third quarter and is scheduled to suspend operations from October 1, 2026, through December 31, 2027.

In the third quarter, five companies made a total of nine changes to key information, including their business names, representatives, and addresses. Baramil Good Life Co., Ltd. changed its name to Cham Joeun Life Co., Ltd. and also changed its address, main phone number, and email address. LB Life Co., Ltd. changed its representative and address, while Bumo Sarang Co., Ltd. and Boram Sangjo Development Co., Ltd. each replaced their representative. The-K Yedaham Co., Ltd. added one bank to the six existing payment guarantee banks with which it has consumer damage compensation insurance contracts.

The FTC urged consumers seeking to enter into prepaid installment contracts, such as prepaid funeral service or installment-based travel plans, to carefully check companies’ business status and notices from consumer damage compensation insurance contract providers, including mutual aid associations and banks. It particularly stressed that consumers should exercise extra caution when dealing with businesses that frequently change their name or address, as this may signal financial distress or the risk of business suspension. Companies that have not entered into consumer damage compensation insurance contracts, such as mutual aid agreements or debt payment guarantee agreements, have no safeguard in place to ensure that consumers can recover the amounts they paid if the company closes down.

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