A Korean American “gye” (계, a traditional rotating savings and mutual aid system unfamiliar to most English-speaking readers)–based funeral mutual aid association is under fire for demanding membership fees while moving toward bankruptcy, leaving many members at risk of losing their contributions. Members argue that both the Young Nak Welfare Mutual Club in LA (나성영락복지상조회, 1721 N. Broadway, Los Angeles, CA 90031, Tel: 323-342-9735) and its parent church, the Youngnak Church of Los Angeles, have shown irresponsibility in handling the crisis.
On August 20, Young Nak Welfare Mutual Club in LA, led by President Suhong Jeon, mailed notices to members stating that “September notices will be sent in the same format as before” and pressed for payments. The club currently has about 608 members, each contributing $80 per month.
Some long-term senior members have already paid in for more than 15 years, with contributions exceeding the $15,000 funeral support benefit promised at the time of death.
One member, identified as Ms. Kim (in her 70s), said, “Three years ago, I refused to pay fees and the $8,000 I had contributed over ten years was never returned. Two of my friends, who also attend Youngnak Church of Los Angeles, are still paying. To say they will file for bankruptcy but still demand $80 a month is fraud.”
In its notice, the Mutual Club explained, “We planned to finalize the direction of the organization and details such as fee amounts and payment periods by confirming the results of the member vote by the 20th, but we did not gather enough responses. Therefore, September notices will be sent in the same format, and we ask for your understanding.”
Another member, Ms. Lee (in her 50s), said the club told her by phone that if her mother failed to pay this month’s fee, her membership would be canceled and no refunds would be issued. “It was almost like a threat. They are acting unreasonably toward members,” she said.
On August 7, Young Nak Welfare Mutual Club in LA sent ballots to all 608 members, asking them to choose between two options:
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Filing for complete bankruptcy under Chapter 7, which would return only about $700–$800 per member.
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Reorganizing under Chapter 11 bankruptcy protection, which would reduce the funeral support benefit from $15,000 to $5,000.
Members argue that paying fees in this situation is pointless since they are unlikely to recover their contributions. At the same time, immediate contract cancellations or refunds are not available. The association has stated it will contact members individually if they did not submit votes.
Many members hold the Youngnak Church of Los Angeles, led by Pastor Eunsung Park, responsible for the crisis, as the church originally launched the mutual aid program. Ms. Kim, who left the association, said, “As a church member, I joined this under the trust of the church. But even during last weekend’s service, there was no mention of this issue, which was deeply disappointing.”
Repeated attempts to reach Young Nak Welfare Mutual Club in LA by phone went unanswered, while the Youngnak Church of Los Angeles declined to comment on the matter.
Meanwhile, members who claim financial loss are reportedly preparing a class-action lawsuit against both the church and the association.
BY HYOUNGJAE KIM [kim.ian@koreadaily.com]
