SEOUL, South Korea, March 5, 2026 — The Korea Fair Trade Commission (KFTC) has imposed a corrective order on Yangju Korea Hospital Funeral Culture Center Co. for providing rebates to funeral directors affiliated with funeral service companies in exchange for referring bereaved families to its facility.
According to the authority, the funeral hall provided rebates totaling approximately KRW 340 million between November 2021 and August 2025 to funeral directors from 112 funeral service companies as compensation for referring clients. The payments included a KRW 700,000 “call fee” per referral and additional commissions equal to 30% of the purchase price of altar flowers bought from a flower shop designated by the funeral hall.
The KFTC found that the conduct constituted unfair customer inducement prohibited under the Monopoly Regulation and Fair Trade Act. The authority concluded that the use of rebates as a competitive tool distorted normal market practices and reduced competition based on price and quality among funeral halls.
The investigation also showed that the cost of the rebates was effectively incorporated into funeral service prices, increasing the financial burden on bereaved families. Internally, the funeral hall reportedly set prices while factoring in rebate payments and offered a 50% discount on room charges to families when funeral directors refused to accept rebates.
The KFTC noted that funeral directors could be incentivized to recommend funeral halls offering rebates rather than those most suitable for families, thereby restricting consumer choice.
The authority stated that the case represents the first instance in which Korea’s competition law has been applied to sanction rebate practices in the funeral services sector. It said the decision is expected to promote fair competition based on price and service quality in the funeral hall market.
In parallel, the KFTC said it has identified indications that similar “under-the-table” practices may be widespread in the funeral industry and has launched investigations into major funeral halls across five regions of the country. The authority added that it will continue monitoring the sector and will take swift enforcement action if further violations are confirmed.
