The Fair Trade Commission said Monday it issued an administrative notice of proposed revisions to consumer protection guidelines for prepaid installment transactions in Korea. The revisions would require operators to set internal rules for managing advance payments and prepare annual management plans. Operators would also have to balance stability, liquidity and profitability, and closely review high-risk investments such as derivatives. Firms holding 100 billion won or more in advance payments would need to set up a management review committee.
Fair Trade Commission / Korea Times file
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 payments and draw up a management plan for each fiscal year.
In Korea, funeral or travel service providers commonly use prepaid installment contracts, under which customers make a series of advance payments for services to be provided at a later date.
