South Korea Tightens Prepaid Investment Rules for Crypto and High-Risk Assets

The Fair Trade Commission (FTC) in South Korea has proposed a revised consumer protection guideline for prepaid service providers, including those involved in pre-need industries such as funeral services.

The updated guideline would require companies to conduct thorough reviews before making high-risk investments, including exposure to virtual assets, derivatives, and leveraged financial products.

Large firms holding at least 100 billion won (approximately $75 million) in customer prepayments would be required to establish a prepayment management review committee to ensure fund stability and transparency.