Apartment Management Companies Searching for the Lowest Price... "It Wouldn't Be Strange If They Stopped at Any Time" [Falling Elevator]②

Many Chinese Parts Up to 10 Times Cheaper
Private Sites Like Apartments Demand Lowest-Priced Products
Frequent Failures Due to Low-Quality Parts
"Elevator Inspections Needed to Prevent Accidents"

On the morning of the 25th of last month, at an apartment complex in Munjeong-dong, Songpa-gu, Seoul, residents and delivery workers turned away upon seeing a sign on the elevator that read "Inspection in Progress." That day was the monthly elevator inspection day. Two inspectors stopped the elevator and used electronic equipment to check for any electronic errors, while visually inspecting gaps in the doors. When inspecting the pulley that moves the elevator, there were some nerve-wracking moments. After lowering the elevator halfway down to the lower floor, they climbed up to the top to check various parts, a situation where a misstep could lead to a fall.

On that day, the inspectors risked such dangers to also service the power device called the "inverter," a part that is frequently replaced. However, it was explained that many inverters are Chinese products costing as little as one-tenth of the price. Kang Ji-seok, the manager of Hanseong Elevator who was conducting the inspection on site, said, "Because of the large price difference, private users like apartment management companies sometimes demand repairs using the lowest-priced products. In such cases, they end up waiting to receive parts cheaper than the ones prepared when the elevator broke down, so repairs are not done immediately and can take several days," adding, "Repeated breakdowns can occur because repairs are not done with proper parts." Although there is a government standard price for elevator maintenance, it is not mandatory, and in reality, even if companies are asked to maintain at less than half the standard price, they cannot refuse.

An elevator maintenance technician is inspecting the safety of an elevator in an aging apartment building in Songpa-gu, Seoul, examining various mechanical systems such as the ropes. Photo by Jo Yong-jun

Flood of Low-Cost Chinese Parts Found Even with Simple Portal Searches

Elevator maintenance requires monthly self-inspections to check for any abnormalities in devices or parts. The principle is to repair immediately when a malfunction occurs. Even when parts need replacement, they must be replaced promptly to ensure safety. The problem starts here. Usually, when a simple maintenance contract is signed, additional costs arise for part replacement, but besides using genuine parts, there are many cheaper alternatives. Without even stepping out, one can search on online portal sites and compare prices to purchase Chinese-made elevator parts. As a result, the elevator maintenance market has been dominated by cheap Chinese products.

On the 12th, a search for "elevator parts" revealed thousands of parts for sale. It was explained that most are sold domestically by distributors through manufacturers based in China. In such cases, although the price is low, it is difficult to receive compensation if the parts are defective. In fact, when searching for electronic circuit boards that control the core functions of elevators from major domestic elevator manufacturers, two were found priced in the 1.5 million KRW and just over 1 million KRW range. Both are shipped from China. Although both are Chinese-made, there was a price difference of over 500,000 KRW. Purchasing these parts as genuine products costs over 2 million KRW. Choosing cheaper Chinese parts means paying less than half the price of genuine parts. The Korea Elevator Maintenance Industry Cooperative and the maintenance industry explained that many small and medium-sized companies choose to import the cheapest Chinese products to secure at least minimal profits. However, if these parts are of poor quality, they frequently cause errors, and even without mechanical defects, the elevator may malfunction.

Lee Kyung-taek, CEO of Hanseong Elevator, who started as an elevator maintenance field worker 20 years ago and has led a specialized maintenance company since 2015, said, "Parts without quality assurance are being sold online without hesitation," adding, "There are countless products whose manufacturing processes, durability, and actual compatibility with elevators in the field are unknown." He continued, "Not all Chinese products are problematic, but the biggest concern is safety due to lack of proper quality assurance," and said, "In the field, it is clearly felt that inexpensive products without quality assurance have poor durability."

90% of Escalator Parts Depend on China

The situation is even more severe for escalators. Over 90% of escalator parts are Chinese-made. After the International Monetary Fund (IMF) financial crisis in the early 2000s, global companies such as Otis and ThyssenKrupp, which had factories in China, dominated the domestic market with low-cost Chinese products. In 2014, Hyundai Elevator also moved its production base to China, leaving no escalator parts manufacturers in Korea.

This has led to a problem where escalators rely entirely on Chinese parts. When China was locked down due to COVID-19, escalators in domestic subway stations and department stores stopped for months because parts could not be imported. Consequently, delays in parts supply and poor quality have become unavoidable. Lee Ki-rang, CEO of Daeryun Ellis, which began producing escalator parts domestically in 2022, explained, "For the past 20 years since domestic parts production factories disappeared, we have been helplessly subjected to China's dominance," adding, "The waste of time and cost has become severe."

Low-cost parts cause accidents. A representative case is the escalator accident at Mokpo Marine Cable Car station. On October 26, 2019, an escalator moving to the Bukhang station caused passengers to fall en masse when the speed of the steps and handrails differed. The cause was a defective spring attached to the drive unit, which failed to keep the slackened chain taut.

Industry experts argue that institutional improvements are urgently needed. The current Elevator Safety Management Act requires monthly self-inspections and sets the regular safety inspection cycle at two years. A detailed safety inspection is only conducted 15 years after the installation inspection. Lee Sun-soon, executive director of the Korea Elevator Maintenance Industry Cooperative, said, "The current management cycle under regulations cannot guarantee safety," and added, "A special inspection system should be introduced so that elevators over 10 years old can have worn parts replaced through a full inspection." He further stated, "Especially for elevators installed with parts urgently imported from China during the COVID-19 crisis or parts from uncertified Chinese companies, a full inspection is necessary to prevent accidents in advance."