South Korea to automate financial transaction blocking for deceased persons

Starting September 11, South Korea will implement a rapid blocking system for financial transactions made under the names of deceased individuals. The new system, a collaboration between the Ministry of the Interior and Safety, the Financial Services Commission, the Financial Supervisory Service, and the Korea Credit Information Services, will automatically block transactions across 4,890 financial institutions.

Previously, information sharing occurred monthly, which could result in a delay of up to two months before a death was recognized by financial institutions. This gap allowed for potential identity theft, unauthorized loans, or fraudulent withdrawals. Under the new system, the frequency of information sharing will increase from once a month to once a day, allowing transactions to be blocked the day after a death is reported.

While most transactions will be blocked, deposits will still be permitted. For urgent needs such as funeral or medical expenses, bereaved families can utilize an ‘exception withdrawal’ system by providing necessary documentation to the financial institution. Families are advised to update payment methods for automatic transfers, such as utility bills or insurance premiums, to avoid service interruptions. Inheritance details can be verified through the ‘Inheritance Financial Transaction Inquiry Service’ or the ‘Safe Inheritance One-Stop Service’.