"Construction Means Immediate Losses"... Interior Design Industry in Turmoil Amid Middle East-Driven Price Surge

Material Prices Surge Amid Middle East Conflict

Wallpaper Accessories and Silicone Up 50%

Difficult to Reflect Higher Costs in Pre-existing Contracts

Demand Drops Further Due to Economic Downturn

The interior design industry has been thrown into turmoil as material prices have surged in the aftermath of the Middle East war. Since the outbreak of the conflict, material prices have been rising almost daily, but it is difficult for companies to reflect these costs in construction prices due to structural constraints.

According to a survey by the Interior Business Owners Association on April 14, prices for wallpaper accessories have soared by 50% (per 3.3 square meters) compared to before the Middle East war. The price of silicone has jumped by 48% (per unit), and water-based paint has increased by approximately 40% (per gallon). The prices of ceramic products such as toilets have risen by about 20%, silk wallpaper by 16%, and PVC flooring by about 17%.

Door companies such as Younglim Door and Yerim Door have recently decided to raise prices by about 15–20%. Flooring material companies like Hansol and Dongwha are also reportedly planning price increases. Even smaller material suppliers are following suit, raising their prices one after another.

Interior companies are struggling. Typically, interior construction contracts are signed two to three months in advance. Due to the war that broke out during this period, companies are forced to shoulder the increased costs themselves. Sangchul Sa, President of the Interior Business Owners Association, said, "We cannot change the contract amount for projects that have already been signed," adding, "Companies are being pushed into a situation where there is nothing left after completing the work."

An industry official lamented, "For projects where the estimate and contract were made two or three months ago, we are now forced to proceed at cost," and added, "When you consider fixed costs like labor or rent, carrying out these projects immediately leads to losses."

Since price hikes are occurring simultaneously across various items, responding to them is even more difficult. Another industry representative said, "We keep receiving notifications that prices for different items are going up," and added, "With the market already sluggish, the operating rate has dropped to around 70%. We can't afford to stop working, but there is no way to predict how long prices will keep rising, and it's difficult to plan our business, which is very frustrating."

It may appear that conditions are not so dire, as some major window and paint companies, such as KCC, LX Hausys, and SP Samhwa, have postponed or reduced their price hikes, or even withdrawn their decisions, in consideration of the government's strong price control measures. However, industry insiders unanimously explain that the reality for the industry as a whole is entirely different. Moreover, there are rumors within the industry that even these companies will inevitably have to raise prices around June.

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