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

According to a survey by the Interior Business Owners Association on April 22, as of April 14, prices for wallpaper materials had jumped by 50% (per 3.3㎡), while the price of silicone had risen by 48% (per unit), and water-based paint had increased by about 40% (per gallon), compared to pre-war levels. The prices of ceramic products such as toilets rose by about 20%, silk wallpaper by 16%, and PVC flooring by approximately 17%.

Door manufacturers such as Younglim Door and Yerim Door have recently decided to raise prices by 15-20%, while flooring companies such as Hansol and Dongwha are also reportedly planning price hikes. Even smaller material suppliers are following suit and raising their prices consecutively.

원본보기 아이콘

Interior firms are struggling. Typically, interior construction contracts are signed two to three months in advance. Due to the war breaking out during this period, companies have no choice but to shoulder the increased costs themselves. Sangcheol Sa, President of the Interior Business Owners Association, said, "We can’t touch the contract amounts that have already been agreed upon," adding, "Companies are being forced into a situation where there is no profit left even after completing the work."

A source in the industry lamented, "For construction projects with estimates and contracts made two or three months ago, we now have to proceed at cost price," and added, "Considering fixed costs like labor and rent, carrying out these projects immediately results in a loss."

It is even harder to respond as price increases are happening simultaneously across multiple items. Another industry insider said, "We keep getting notifications that prices are rising for different categories," and added, "The poor economy has already driven our operation rate down to around 70%. We have no choice but to keep working, but we can't predict how long prices will keep going up or make business plans, which is very frustrating."

Although some major window and paint companies-such as KCC, LX Hausys, and SP Samhwa-have held off, reduced, or withdrawn planned price hikes in consideration of the government's strict price control policy, insiders say this does not reflect the reality of the industry as a whole. Furthermore, there are even reports in the industry that these companies will inevitably move forward with price increases around June.