Increasing Remodeling Construction Demand... "Need to Introduce Defect Warranty Insurance"

On the 20th, Seminar on 'Current Status and Alternatives for Home Repair Defect Corrections' Held

[Asia Economy Reporter Hwang Seoyul] The Seoul City Home Repair Center held a seminar to identify the current status and issues of home repair defect repairs and to prepare institutional alternatives for them.

The Seoul City Home Repair Support Center announced on the 20th that it held a seminar titled "Current Status and Alternatives for Home Repair Defect Repairs" at the main conference room of the Seoul Urban Regeneration Support Center in Yongsan-gu. Residents, industry officials, and academic researchers participated in the seminar.

This seminar was organized to address defect repair disputes arising in urban regeneration projects and home repair processes from an institutional perspective. According to Eunhyung Lee, a research fellow at the Korea Construction Policy Institute, who presented on the topic "Introduction Plan for Defect Warranty Products in Response to Increased Remodeling Demand," 39.6% of all buildings in Korea are over 30 years old, and when limited to residential buildings, 49.1% are classified as aged buildings, indicating a high likelihood of increased demand for remodeling construction in the future.

However, it has been pointed out that the level of interior defect repair handling does not keep pace with market growth. This is due to cases where some construction companies evade responsibility for defect repairs or violate regulations requiring construction projects over 15 million KRW to be handled by construction businesses registered as specialized construction companies.

In response, Research Fellow Eunhyung Lee proposed a "Remodeling Defect Warranty Insurance." According to Lee, by providing incentives such as disclosing information about companies that can effectively subscribe to warranty insurance, consumer rights can be protected, and voluntary improvement in the quality of construction companies can be encouraged.

This insurance plan, reflecting overseas cases such as Japan, is structured so that when consumers apply for insurance through pre-registered construction businesses, the insurer sends experts to inspect the completed building before approving the subscription. Since buildings with poor construction cannot be insured, this can prevent moral hazard among construction companies. The insurance premium consists of warranty fees and on-site inspection costs.

The insurance plan also includes an institutional mechanism tailored to domestic circumstances, allowing consumers to directly request defect assessments from the insurer. This aims to guarantee consumer rights by preventing cases where construction businesses refuse defect repairs.

Meanwhile, the Home Repair Support Center operates and supports various projects necessary to revitalize home repair, such as a home repair company registration system, education for home repair stakeholders, and Seoul City home repair support projects, to create a healthy ecosystem in the home repair market.

This content was produced with the assistance of AI translation services.