FTC proposes guidelines to boost transparency at prepaid installment firms
Korea's fair trade watchdog said Monday it issued an administrative notice of proposed revisions to consumer protection guidelines for prepaid installment transactions, aimed at strengthening transparency in operators' management of customers' advance payments. The Fair Trade Commission (FTC) said the proposed revisions would require operators to establish internal guidelines for managing advance…
Korea's Fair Trade Commission (FTC) has proposed guidelines to enhance transparency in prepaid installment transactions, according to a report from Monday. The aim of these proposed revisions is to strengthen the management of customers' advance payments by operators.
Under the proposed guidelines, operators would need to establish internal rules for handling advance payments and create a yearly management plan. This would apply to businesses in Korea that commonly use prepaid installment contracts, such as funeral or travel service providers. When managing these payments, operators would have to balance stability, liquidity, and profitability to ensure there are enough funds to fulfill contracted services and refund customers in case of cancellations.
Additionally, the operators would be required to conduct thorough reviews before investing in high-risk assets, such as derivatives. This rule would particularly apply to operators who hold 100 billion won ($72.1 million) or more in advance payments.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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