Consumer Agency: "Increase in Home Interior Consumer Damage...Carefully Check Warranty Period"

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[Asia Economy Reporter Jeon Jinyoung] As demand for home interior design has increased since COVID-19, consumer damages such as failure or delay in defect repairs after interior construction continue to occur.

According to the Korea Consumer Agency on the 26th, the total number of consumer damage relief applications related to interior design received over the past four years was 1,752. In particular, 568 cases were received in 2021, a 37.9% increase compared to the previous year (412 cases). The most common type of consumer damage was "failure or delay in defect repairs," accounting for 24.5% (429 cases).

Next were "defects in material quality, construction, finishing, etc." at 14.2% (249 cases), and "claims for damages due to poor construction" at 8.8% (155 cases). Construction amounts under 15 million KRW accounted for 77.1% (1,350 cases), but those over 15 million KRW, which require construction business registration, also accounted for 17.5% (306 cases).

There were cases where consumers trusted the headquarters or intermediary platforms but the headquarters did not take responsibility. A survey of four major interior brand operators and four construction intermediary platforms found that two companies (LX Hausys, Hyundai L&C) stated that the headquarters has no repair responsibility for construction defects occurring under contracts with general agencies rather than directly managed stores.

The other two companies (KCC Glass, Hanssem) indicated that even in cases of contracts with general agencies, if construction is done with headquarters products and the headquarters’ standard contract is used or the headquarters participates as a construction manager, the headquarters also bears responsibility for defect repairs.

All four intermediary platforms clearly stated that construction responsibility lies solely with the construction contractors.

Regarding the defect liability period, six companies indicated it was one year or more, but two platforms (Soomgo, HouseApp) showed some registered contractors with less than one year or did not specify the period separately, causing potential disputes when defects occur.

The Consumer Agency revealed that only two operators (Today’s House, Zipdoc) informed consumers that for construction over 15 million KRW, work must be conducted with registered construction businesses to receive legal protection, and they marked whether each contractor was a registered construction business.

Based on this investigation, the Consumer Agency plans to recommend to businesses ▲strengthening disclosure of contractors’ construction business registration status ▲expanding the use of standard contracts for interior architecture and window construction ▲introducing escrow payment systems. Consumers are also urged to ▲check contractor information and defect liability periods ▲choose registered construction businesses for projects over 15 million KRW ▲request use of standard contracts.

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