Korean Burial-Plan Firms Turn into Travel Market Powerhouses
Creatrip Team
7 months ago
Funeral-plan companies (상조, prepaid funeral membership services) in South Korea are transforming into major travel distributors by converting large prepaid deposits into immediate revenue through travel packages. The industry’s “Big 4” (Kyowon Life, Boram Sangjo, Sono Station, Woongjin Freedlife) together hold about 12 million members and roughly 10 trillion KRW in advance payments. Because prepaid funds are recorded as liabilities until used for funerals or maturity, firms increasingly offer conversion services to travel—turning liabilities into instant sales and improving short-term financials. In 2024, Sono Station grew revenue 171.5% by combining asset sales and bundled products; Woongjin posted 20.4% growth; Kyowon Life and Boram also reported double-digit increases. Strategies vary: Kyowon leverages its travel arm “TravelEasy” (여행이지) to convert 75% of conversion customers to trips by offering diverse package options; Sono Station is building an “airline+hotel+membership” value chain and targeting high-end long-haul products; Boram focuses on themed tours for active seniors; Woongjin uses partnerships and direct operations (including cruise charters) to secure competitive pricing. Industry observers say these firms, armed with capital and installment-payment options, are shifting from being a sales channel for travel agencies to direct competitors in the travel market.
