"what do you want me to do with the funeral?"the outstanding amount of '30 billion' in the mutual aid industry's 'closed-down line'

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With eight recently closed mutual aid companies, the unpaid compensation is close to 30 billion won, a report showed.

Min Byung-duk of the Democratic Party of Korea, a member of the National Assembly's political affairs committee, analyzed the data of the Fair Trade Commission today (25th) and found that a total of eight mutual aid companies were closed from 2022 to August this year, including Han River Life Co., Ltd., KB Life Co., Ltd. and Han Hyo Life Co., Ltd.

The total amount these companies have to compensate their subscribers is KRW 124.1 billion. However, it was found that the compensation paid to subscribers so far was only 93.3 billion won. The unpaid amount alone is about 28.1 billion won.

In particular, Han River Life Co., Ltd., which had 73,000 subscribers and accumulated advance payments of KRW 134.4 billion, and Hanhyo Life Co., Ltd., which had 41,000 subscribers and 89.7 billion won in accumulated advance payments, failed to pay compensation of around KRW 10 billion, respectively.

KB Life Co., Ltd. and Youngnam Global Co., Ltd. also paid only about half of the amount subject to compensation. Shinwon Life Co., Ltd., which closed its business in July, has yet to start the compensation process.

Critics point out that fundamental consumer protection measures are needed to prevent a "second Timef crisis" as there is no clear regulatory body dedicated to mutual aid companies.

The mutual aid service is a business in which a mutual aid company provides contracted goods and services when consumers pay a certain amount in installments in preparation for future ceremonies such as funerals. As the aging population of

accelerates, various companies have entered the mutual aid industry, but consumer anxiety is growing due to a series of recent closures.

Reporter Park Sun-young of the digital news team.