Financial transactions in a deceased person’s name will be automatically blocked from the next day if a death report is received. Previously, it could take up to about 2 months for financial firms to confirm a death, but the block will come much earlier as information on the deceased is shared with the financial sector daily.

The Ministry of the Interior and Safety, the Financial Services Commission, the Financial Supervisory Service and the Korea Credit Information Services said on Sept. 7 they will fully launch the “rapid block system for financial transactions in the name of the deceased” from Sept. 11.

Previously, some financial firms received death information from the ministry through the Korea Credit Information Services once a month. Considering the deadline for filing death reports and the information-sharing cycle, it could take up to about 2 months for financial firms to confirm a death, and only some financial firms used the information.

Going forward, the ministry’s cycle for providing death information will be shortened from once a month to once a day. Financial firms will check death status in real time during in-person and non-face-to-face transactions, and will immediately block transactions if a person is confirmed dead.

The system will also be expanded to cover 4,890 firms across the financial sector, including banks, insurers, card firms, securities firms, savings banks and mutual financial institutions. Financial transactions for accounts in a deceased person’s name will be blocked, except for certain essential transactions such as deposits.

Bereaved families will not need to apply separately to block financial transactions.

If urgent funds are needed for medical bills or funeral costs, an “exceptional withdrawal” scheme can be used. With related documents such as a certificate of family relations, the financial firm transfers funds directly to a hospital or funeral home.