Funeral service industries shall only start a business after applying to the special municipality or county (city) competent authorities for an operator’s license, having company or business registration in accordance with the law and joining the Funeral Service industry Association.
Funeral place establishment and development rental industries and funeral service industries that have resisted in accordance with the Companies Act or the Business Registration Act prior to the enforcement of this Act and that have reported to the special municipality or county (city) competent authority for future reference are deemed to have obtained the preceding permission.
Funeral etiquette service industries operating in special municipality or counties (cities) outside the abovementioned license jurisdiction shall start the business after reporting to the locating special municipality, county (city) competent authority with the original operation license for reference. However, operators with business premises shall start the business only after joining the local Funeral Service industry Association of the special municipality or county (city).
Funeral facility management industries shall also start their businesses only after joining the local Funeral service industries Association in the special municipality or county (city).
Other legal persons engaging in the Funeral service industry with an establishment purpose other than the regulation mentioned in paragraph 1 shall start said business after applying for and receiving the operation license from the special municipality or county (city) competent authorities and joining the Funeral Service industry Association. For those who do business outside of the cities, counties, or special municipalities where the establishment of the funeral service industry was originally licensed, the provisions of the first two paragraphs shall apply.
The procedures, matters, qualifications, conditions and other matters regarding compliance with operation license application in paragraph 1 shall be conducted by the central competent authority.

Funeral service industries shall start the business within 6 months after applying for company or business registration, or receiving the license to operate in accordance with the law. If the company fails to operate within that period, the special municipality or county (city) competent authority may cancel the license. Those with proper excuses may apply for an extension of up to three months.

Funeral service industries shall register for the change to the special municipalities or county (city) competent authority for approval within fifteen days when the there is any change to the items permitted in Article 42.

Funeral etiquette service industries with a certain scale shall hire one full-time funeral director before they may apply for permits and business.
The qualifications, conditions and certificate application or change, practice management and other matters to be complied with by the funeral director shall be determined by the central competent authority.
The scale mentioned in paragraph 1 shall be determined by the central competent authority after the enforcement of the foregoing paragraph.

Those with a funeral director’s certificate are allowed to perform the following operations:
1.Planning and consulting of funeral rites
2.Planning and design of funeral venue
3.Directing the design and writing of funeral documents.
4.Guide or act as the master of the funeral ceremonies
5.Hospice and grief counseling
6.Other business projects approved by the central competent authority.
Those who have not obtained the qualification of funeral director are not allowed to perform the business in the name of funeral director in the preceding paragraphs.

Those with one of the following circumstances shall not serve as the person in charge of the funeral service industries:
1.Those who are incapacitated or have limited ability to act.
2.Those who have been declared bankrupt and has not been reinstated
3.Those who have committed crimes of murder, prejudice of freedom, robbery, intimidation, kidnapping, fraud, breach of trust, embezzlement, or crimes listed in Article 2 of the Sexual Assault Prevention Act, paragraph 1 and 2 of Article 3 and Article 6 and Article 9 of the Organized Crime Prevention Act, and were sentenced to more than a year in prison as a penalty but have not completed or executed or been pardoned less than three years ago. However, one with probation is not subject to this restriction.
4.One who is sentenced to disciplinary education and judged and has not yet finished the sentence or finished less than three years ago.
5.Those who have operated a funeral service business and have had their licenses revoked by the competent authority, and have not completed five years from the date of such revocation or cancellation. However, those who have not started business by the deadline stipulated in Article 43 or those who have stopped business by themselves as stipulated in Article 57 are not subject to this limitation.
6.Those who are subject to the punishment of stopping business as stipulated in paragraph 3, Article 75, and have not yet completed the execution.
Funeral service industries with any of the circumstances mentioned in the preceding paragraphs shall be made to change the person in charge within the deadline established by the special municipality or county (city) competent authority. If the company fails to change the person in charge within that period, the permission may be canceled.

Funeral service industries shall display related licenses, goods or service items, and the price or the basis schedule of charges in a prominent place at the business premises and keep the basis schedule of charges.

Funeral service industries shall have a written contract conducted with consumers regarding the services or products provided. Any amount not written in the written contract is free from claims. Undertakers shall not ask for additional costs or increase the amount after the signing of the contract with any sort of excuses.
The format and content of the written contract mentioned in the preceding paragraph shall be established by the central competent authority with a model contract as well as the items that should and should not be included in the contract.
Funeral service industries shall display the standard contract template drafted by the central competent authority and print it on the receipt or deliver it to consumers. Unless there is another contract signed, it is deemed to have been contracted with consumers in accordance with paragraph 1.

Funeral etiquette service industries without an operation license issued by the special municipality or county (city) competent authorities in accordance with the provisions in Article 42 shall not sign preneed funeral services contract with consumers.
Funeral etiquette service industries who sign preneed funeral services contracts with consumers shall have a certain scale with proof of that certain scale, a preneed funeral services contracts and a signed copy of the Trust Deed with a Trust Industry, and then submit them to the special municipality or county (city) competent authorities for approval before they may sign a preneed funeral services contract with consumers.
The preneed funeral services contract mentioned in the preceding paragraph shall be prescribed by the central competent authority with a standard model contract, as well as the items that should and should not be included in the contract. That certain scale shall also be determined by the central competent authority for approval.

Preneed funeral services contract signed by Funeral etiquette service industries and consumers shall have 75% of the pre-charge paid to the trust industry for management according to the trust principles. This money cannot be withdrawn until the fulfillment, rescission and termination of the preneed funeral services contract or as otherwise provided in this Act.
The fee mentioned in the preceding paragraph means the amount consumers pay for their funeral service contract.
Funeral etiquette service industries shall keep billing and records of the amount delivered to the trust industry for the management mentioned in the paragraph 1 monthly on a case by case basis and deliver the fee to the trust industry for management before the end of the next month.
The trust deed mentioned in the paragraph 1 shall be conducted by the central competent authority along with the industry competent authority of the trust industry with a standard model contract, as well as the items that should and should not be included in the contract.

The scope of application of the fees for the management of the trust industry delivered in accordance with Paragraph 1 of the preceding Article shall be limited to the following paragraphs:
1.Cash and bank deposits
2.Government bonds and bonds issued by the central bank and international financial organizations approved by the Financial Supervisory Commission
3.The attached repurchased transactions with the preceding subparagraph as the subject
4.Financial bonds, corporate bonds and short-term bills that have had their credit ratings assured by the central competent authority for approval to be above a certain level and benefit securities or asset base of securities issued in accordance with the Financial Asset Securitization Act and the Real Estate Securitization Act.
5.Common trust funds in money market and trust invested by fund money market securities
6.Bond funds
7.Other trust funds or securities investment trust funds other than those in the preceding two subparagraph
8.The scope of foreign securities established in accordance with paragraph 2, Article 18-1 of the Trust Business Act by the trust industry with the trusted property
9.The cost of land, construction, and related facilities for approved funeral homes and crematoriums.
The total investment of what is mentioned in subparagraph 7 to 9 in the preceding paragraph shall not exceed 30% of the current value of the trust property. The total investment value of what is mentioned in subparagraph 9 shall not exceed 25% of the current value of the trust property.
Funeral home or crematorium identification, management and other line binding matters mentioned in subparagraph 9, paragraph 1 shall be prescribed by the central competent authority.

Funeral etiquette service industries deliver to the Trust Industry for management in according to paragraph 1, Article 51 shall be balanced by the trust industry annually on December 31st. Funeral etiquette service industries shall make up the difference in cash if the amount is less than 75% of the pre-charge after settlement. If the amount exceeds 75% of the pre-charged, the realized benefits can be withdrawn.
The preceding balance shall have unrealized loss calculated.
The settlement report of Paragraph 1 shall be submitted to the special municipality and county (city) competent authorities by the trust industry before January 31st of the following year.

After the discharge or termination of the trust deed signed by the Funeral etiquette service industries and the trust industry in accordance with the regulations set forth in paragraph 1, Article 51, a new trustee shall be designated. The trust property shall be transferred to the new trustee after settlement by the original trustee. Before being transferred to the new trustee, the Trust Deed must be deemed as subsisting and shall be managed by the former trustee with the original trust deed.
When Funeral etiquette service industries are under bankruptcy, the property delivered to the trust industry for management in accordance with paragraph 1, Article 51 does not belong to the bankrupt company.
Funeral etiquette service industries with one of the following circumstances shall have the property delivered to the trust industry for management in accordance with paragraph 1, Article 51 after approval from the special municipality or county (city) competent authorities after reporting by the trust industry and a refund to customers who signed preneed funeral services contracts with funeral etiquette service industries without any fulfillment yet:
1.Bankruptcy
2.Dissolved by law, or its license is revoked by the competent authority of the special municipality, county (city).
3.Businesses stopped on their own for six consecutive months or more, or suspended for more than six months or more by the special municipality or county (city) competent authorities
4.Companies fail to apply for resumption of business after the expiration of the application to the competent authorities of special municipalities or counties (cities) within three months.
5.Fail to assign a new trustee within six months after the dissolution or termination of the signed trust deed for any reason.
The refunds that consumers who signed the preneed funeral services contract gained in accordance with the preceding paragraph will be based on the fees paid. However, if the disposition of the trust property is insufficient to pay off consumers’ paid fees for all unfulfilled contract, they shall be paid in accordance with the proportion of the consumer payment.

For the understanding of municipal or county (city) competent authorities to the following situations, authorities are allowed to send employees or commissioned professionals to perform an audit. The subject of the audit shall not evade, obstruct or refuse it:
1.Funds deposited in accordance with the provisions of Article 35 and management fees specified in written contracts.
2.Expenditure purposes of the daily expenditure account and emergency expenditure account as specified in Article 35-1.
3.Compliance with the provisions of Article 35-2 regarding the mandatory insurance coverage for fire and earthquake insurance.
4. Balance and trust delivery of the received Preneed Funeral Services Contracts in accordance with Article 51 to the preceding Articles.
Municipal or county (city) competent authorities may disclose relevant information of the audit results.

Funeral etiquette service industries are allowed to commission companies and businesses as the sales of preneed funeral services contract. Unless otherwise provided in other laws, funeral facility management industries such as tomb base and columbarium sales may do the same.
Funeral service industries shall have the relevant business documents of sales units of tomb bases, columbarium, business premises of preneed funeral services contract and commissioned companies in accordance with the preceding paragraph submitted to the special municipality or county (city) competent authorities for approval for future reference and with the relevant information disclosed. Any commissioning or business transaction shall be done likewise.
The former information must be disclosed, and other binding matters shall be prescribed by the central competent authorities for approval.

Funeral service industries scheduled to suspend their business for more than three months shall apply for suspension of business in writing to the special municipality or county (city) competent authority for approval 15 days prior to the cease operation date and apply to resume business activities 15 days prior to the deadline.
The business suspension mentioned in the preceding paragraph shall be less than one year. Those with special reasons may apply to the special municipality or county (city) competent authority for approval for an extension of up to six months once.
The operation licenses of funeral service industries that have stopped operation for six consecutive months or more by themselves after the operation had started or those who failed to apply for business resumption before the deadline can be revoked by the special municipality and county (city) competent authorities.

Funeral service industries that are rated excellent in the regular evaluation held by the special municipality or county (city) competent authorities shall be rewarded.
The preceding statute of autonomy of appraisal and reward shall be conducted by the special municipality or county (city) competent authority for approval.

The Funeral Service industry Association shall hold or commission schools, institutions, and scholarly societies annually to hold funeral Service business conventions and training courses.

Funeral service industries may assign their employees to participate in funeral workshops or training as the actual situation dictates.
The record of participating in the preceding seminars or training will be included in the evaluation of funeral service industries.