[Anchor]

It is time for Friendly Economy on Thursday. What news do you have for us today, October 8?

[Reporter]

It is about interior remodeling.

In the first half of this year, interior design-related complaints and damages reached 430 cases, marking a 22% increase from a year earlier.

Only 3 to 4 out of 10 cases were successfully resolved through agreements with the contractors.

In fact, I know someone close who recently went around four interior firms just to barely manage to sign a contract with one.

When the estimate was drawn up, it turned out to be nearly 25% higher than the initial price discussed at their first meeting.

For a 100 million won project, that means paying close to an extra 25 million won.

And this is not just happening to one household.

Reports filed with the Korea Consumer Agency have been increasing every year, rising from 467 cases in 2023 to 795 cases last year. Looking at it monthly, complaints start surging consistently around September and October, which is the autumn moving season.

Right now, in other words.

The number one reason for complaints is the refusal to fix defects that occur during or after construction.

This accounts for nearly 6 out of 10 cases.

Contract breaches, such as failing to use promised materials or missing construction deadlines, followed next.

Looking at cases reported to the Consumer Agency, it is unbelievable.

One person contracted for 600 by 600 millimeter tiles, but the ones actually installed were half that size. When the contractor promised to redo the work, they just tore off the tiles and then cut off all contact.

In another case, an apartment renovation costing over 90 million won involved paying 50 million won upfront, but a contractor who was working without even a blueprint arbitrarily changed the front door password and halted the project.

[Anchor]

This is not a small sum of money, so falling victim to this must cause serious damage.

[Reporter]

Despite projects costing tens of millions or even hundreds of millions of won, consumers often cannot properly compare what they are buying and at what prices before signing the contract.

In the personal case I mentioned earlier, only one of the four companies checked said they would provide an estimate sheet, and even then, they handed it over hastily right at the signing table.

It was only after raising questions that it was revealed a 5% to 15% margin for the company had been tacked onto every single material.

When taking a close look back at home, the consumer found that numerous items differed from what had been discussed repeatedly over time.

Since the down payment had already been paid, consumers inevitably end up in a weaker position.

The barrier to entry for businesses is also low.

Projects under 15 million won can be carried out without construction business registration, yet more than half of the damages occurred in small projects costing less than 5 million won.

On the other hand, even though unregistered contractors taking on projects worth 15 million won or more are subject to up to 5 years in prison or a fine of up to 50 million won, cases of consumers suffering damages after contracting with such companies have been confirmed.

Even for these large-scale projects, only 1 out of 3 cases resulted in an agreement after damages occurred.

[Anchor]

Then what should be done about this?

[Reporter]

For wedding preparations like studio, dress, and makeup packages, which faced similar complaints over extra charges, price disclosure has become mandatory.

In contrast, detailed estimates and standard contracts for interior design remain optional.

For wedding packages, rules were changed to require prior disclosure of itemized prices and penalty standards, prompting the Fair Trade Commission to launch intensive inspections starting last August.

Violators can face administrative fines of up to 100 million won.

Meanwhile, although the Fair Trade Commission created a standard contract for interior design in 2018, it is only recommended and not mandatory.

There is also no mandatory rule requiring companies to provide a detailed estimate containing materials, specifications, and unit prices before signing a contract.

There was also criticism from the National Assembly pointing out that corrective orders issued to registered companies that failed to fulfill defect liability numbered only two over the past five years, and both of those were issued only this May in May.

While the Consumer Agency has filed complaints against a dozen unregistered companies, the current measures remain at the level of making requests to the industry.

The practice of rushing people into contracts without giving them time to review must no longer be left as it is.

The Ministry of Land, Infrastructure and Transport, which manages business registration and defect repairs, and the Fair Trade Commission, which cracked down on wedding package extra fees, must now look into the interior design market.

They must ensure that detailed estimates are delivered in writing before contracts are signed, giving consumers enough time to carefully examine them.

In addition, any additional construction after contract signing should require the consumer's written consent.

For now, you can protect yourself with these steps.

Always receive the estimate in writing before signing a contract, and check item by item to ensure everything discussed is accurately included.

Even if you have already signed, be sure to save KakaoTalk messages and texts discussing the details, and if anything differs, demand a correction in writing before construction begins.

If a contract is broken before construction starts due to the company's fault, you can get your money back and receive compensation equal to 10% of the construction cost.

If issues cannot be resolved, you can apply for damage relief through the 1372 Consumer Counseling Center.

Also, for projects of 15 million won or more, be sure to verify whether the contractor is a registered business through the Ministry of Land, Infrastructure and Transport's Construction Industry Knowledge Information System, known as Kiscon, before signing.

If defects are found, take photos and withhold the balance payment until all repairs are fully completed.