Financial Transactions in Deceased's Name to Be Blocked Immediately the Day After Death Registration

Starting the day after a death registration, financial transactions under the name of the deceased will be immediately blocked.

The Financial Services Commission, the Ministry of the Interior and Safety, the Financial Supervisory Service, and the Korea Credit Information Services announced on September 6 that a swift blocking system for financial transactions in the name of deceased individuals, involving the entire financial sector, will officially launch on the 11th.

Previously, some financial companies received information on deceased persons from the Ministry of the Interior and Safety once a month to block transactions. Considering the deadline for death registration and the information-sharing cycle, it took up to two months to confirm a death.

To eliminate such blind spots, the government and financial authorities have established a public-private integrated response system that links the entire process from the generation and sharing of deceased information to the blocking of financial transactions.

As a result, information on deceased individuals will be promptly shared across the entire financial sector, and financial companies will verify whether a customer is deceased in real time before executing financial transactions.

The Ministry of the Interior and Safety will provide information on deceased persons once a day, and financial companies will check this during face-to-face and non-face-to-face transactions to immediately block transactions once death is confirmed.

The scope of application will also be expanded to the entire financial sector (4,890 companies).

Once a person is confirmed dead, all financial transactions except for deposits and exceptional withdrawals will be blocked immediately.

Even if bereaved families do not apply, death registration information will be shared, and financial transactions will be automatically processed for blocking.

Information on deceased individuals will be safely protected through internal control systems.

Use for purposes other than blocking financial transactions or provision to third parties is prohibited, and financial companies must electronically record and manage the processing of deceased information and financial transaction histories.

The Financial Supervisory Service plans to continuously monitor management compliance.

Bereaved families must conduct financial transactions through inheritance procedures, and if emergency funds such as medical expenses or funeral costs for the deceased are needed, they can utilize the exceptional withdrawal system.

In addition, automatic transfers from accounts in the name of the deceased may be suspended, so payment methods for utility bills or insurance premiums must be changed in advance.

Inherited property can be checked through the Financial Supervisory Service's "Inherited Person Financial Transaction Inquiry Service" or the Ministry of the Interior and Safety's "Safe Inheritance One-Stop Service."

The Ministry of the Interior and Safety, the Financial Services Commission, and the Financial Supervisory Service stated, "This improvement will help protect the public's assets and prevent fraudulent financial transactions," adding, "We will strive to minimize inconveniences for bereaved families and ensure the settlement of the system."

(Photo provided by Ministry of the Interior and Safety, Financial Services Commission, Financial Supervisory Service, and Korea Credit Information Services; Yonhap News)
※ Please note: This article was translated by AI and may contain errors.