Young Nak lawsuit: Members to file class action over fees

Members who received bankruptcy procedure ballots in August 2025 from the Young Nak Welfare Mutual Club in LA (President Suhong Jeon) have begun preparing a class-action lawsuit against the organization. They argue that the vote on bankruptcy proceedings and notices demanding payment of August and September 2025 fees amount to fraud. Through the Young Nak lawsuit, they plan to seek compensation for principal contributions paid to date and other damages.

Recently, a member identified as Mr. Kang, who says he was affected, announced that he is recruiting other members and families of members to join the class action.

Mr. Kang said, “My 89-year-old father has already paid in the equivalent of the $14,000 funeral benefit promised upon death after contributing to the club for 16 years. Around 2023, we wanted to withdraw at least the principal contributions, but the church rejected the request. We continued paying $80 a month until July 2025, and now to be told that bankruptcy will return far less than the principal is fraud.”

He added, “I am meeting with an attorney to discuss filing the case. The more members who join the lawsuit with original membership contracts, the stronger the case will be. I urge anyone willing to participate to contact me.”

At present, about five members and family members have reportedly agreed to join the Young Nak lawsuit, and the victims are in the process of retaining legal counsel.

On August 7, the Young Nak Welfare Mutual Club in LA mailed ballots to its 608 members, asking them to choose between two options: filing for complete bankruptcy under Chapter 7, which would return approximately $700–$800 per member; or restructuring under Chapter 11 bankruptcy protection, which would reduce the funeral benefit from $15,000 to $5,000.

On August 20, Suhong Jeon sent out September fee notices, drawing strong backlash from members. The notice stated that “September notices will be sent in the same format as before,” pressing members to pay their monthly fees.

Members argue that in the face of bankruptcy, paying further fees would only result in more losses. At the same time, canceling contracts and receiving refunds is currently impossible. Some also say they paid roughly $15,000 over many years yet did not receive the funeral support after a parent’s death.

One member’s daughter, who requested anonymity, said, “My father passed away in May 2025. I immediately prepared the paperwork and contacted the Mutual Club office, but they only listened and never followed up. More than three months have passed, and I still haven’t received the funeral support payment.”

Victim contact for lawsuit participation: (714) 987-2367

BY HYOUNGJAE KIM [kim.ian@koreadaily.com]