It even had a proper office, but turned out to be an unregistered business... A 20-million-won renovation turns into a nightmare [The Essentials of Consumption]

[Financial News]#. “It had a perfectly respectable office and I checked the reviews, but I never imagined the company might be unregistered.”Kim, a consumer in their 30s, hired an interior renovation company last June ahead of moving into an apartment, using a popular online platform for finding professionals. Kim checked reviews of completed projects and even visited the company’s office in Daegu to sign the contract. The contract totaled 21.7 million won and covered window work, wall demolition and cutting, bathroom work, and more.
But warning signs appeared from the first day of construction. Although other workers were to do the actual work, the company’s representative repeatedly put off the schedule, citing personal circumstances, including the illness of the representative’s mother. Frustrated, Kim contacted the workers one by one and coordinated dates they were available; only then did work finally get underway.
Problems continued even after construction finally began. A window frame was installed on a wall that was supposed to be demolished, while the window frame in the kitchen extension lacked an opening for ventilation. A door of the wrong thickness was also installed. Kim had a recording from the time showing that materials for a sliding door were included in the contract, but that work was never done.
Kim asked the company to fix the faulty work, but it demanded an extra 5 million won, saying that materials and other costs were not included in the original contract. When Kim refused, the company unilaterally notified Kim that it was terminating the contract and halted work, leaving materials and other items at the site. As a result, Kim suffered losses, including a delay of about two months in moving in, and sought help from the Korea Consumer Agency.■ Interior renovation complaints surge... Some cases turn out to involve “unregistered businesses”According to the Korea Consumer Agency on the 11th, 2,243 cases seeking redress for interior renovation-related complaints were filed over the past three years and six months. A total of 430 cases were filed in the first half of this year alone, up 22.2% from the same period last year. Dissatisfaction with repairs for defects was the most common complaint, at 56.9%, followed by failure to fulfill contracts at 25.2% and contract cancellations at 13.2%.
During the process of seeking redress, Kim discovered that the company was not registered as a construction business. Under the Framework Act on the Construction Industry, only businesses registered for construction work may carry out interior construction projects with an estimated cost of 15 million won or more. Anyone who engages in the construction business without registering may face up to five years in prison or a fine of up to 50 million won. Consumers can be harmed after judging a company legitimate based only on its office, business card, or customer reviews.■ “If it costs more than 15 million won, check registration first”The Korea Consumer Agency urged consumers entering into high-value renovation contracts to make sure to check whether the company is registered for construction work through the Construction Industry Knowledge Information System. An agency official said, “Unregistered businesses have little understanding of their liability for defects, making it difficult to resolve disputes when problems arise, so consumers need to exercise particular caution.” The official added, “If a defect arises before the work is complete, consumers should withhold an amount equivalent to the cost of the necessary repairs and pay the balance once the repairs have been completed.”
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