680 Cases of Packing Move Damages Last Year, Increasing Annually
Compensation Standards Exist but Are Ineffective When Damages Occur
Last September, Mr. A had a frustrating experience while using a packing moving service to relocate his belongings. The initial estimate he received at the time of contract stated that the cost for a 5-ton truck packing move, including a large ladder truck, was 1.5 million won. However, when the move actually took place, the company demanded an additional 450,000 won.
A professional moving company specializing in packing supported the relocation of a single-parent family in Gwangsan-gu who had to urgently vacate their home due to an auction. Stock photo unrelated to the article.
The company brought a small ladder truck instead of the large one agreed upon in the contract. They then said that since the loading platform was larger and work could be done from both sides, using a large ladder truck would cost an extra 200,000 won. They also claimed that the 5-ton truck could not carry all the belongings and demanded an additional 250,000 won for a 1-ton truck.
Mr. A reluctantly agreed to the company’s demands and thought the move was finally over, but after the moving center left, he found the dishes piled up in the bathroom and the place was a mess. When he tried to contact the company to complain, it was futile.
Mr. B also suffered losses last August after entrusting a packing move, during which his refrigerator, oven, and dining table were damaged. Although the workers’ negligence was clear, the moving company staff denied responsibility as if they did not know about it. The repair estimate for the damaged items exceeded 1 million won. When he called the company’s head office to complain, they said they would contact the agency, but then the communication was cut off.
Consumer damages related to packing moving services, such as damage to belongings and contract breaches, are increasing. According to the Korea Consumer Agency on the 5th, the number of damage relief claims for packing moving services rose annually from 434 cases in 2022 to 519 cases in 2023, and 680 cases last year. Damage relief is a system where, if consumers suffer damages while using goods or services from a business, fact-finding and expert consultation are conducted to recommend an agreement between both parties.
The most common reason for damage relief claims was contract breach, accounting for 40.8% (177 cases) in 2022, 43.2% (224 cases) in 2023, and 49.3% (335 cases) last year. Complaints about quality and after-sales service followed, with 47.5% (206 cases), 41.0% (213 cases), and 35.3% (240 cases) during the same periods.
The continued occurrence of consumer damages is largely due to most packing moving companies being small-scale businesses. As of 2023, companies with annual sales of 300 million won or less accounted for about 85.5% of the packing moving market. The Consumer Agency pointed out in an August survey last year that in a market crowded with small businesses, prices and service quality are not standardized, and the companies’ own compensation standards are insufficient.
There are also criticisms that the compensation standards established for damage relief are inefficient. The Consumer Agency’s dispute resolution standards related to moving specify business compensation for damage to belongings or contract termination due to the business’s fault. However, in reality, compensation is not properly provided. Professor Eunhee Lee of Inha University’s Department of Consumer Studies said, “Even if consumers report damage situations by calling the consultation center, given the industry’s characteristic of many small businesses, if a company stops operating for a while, that’s the end of it.” She added, “At the same time, it is difficult to regulate each small business individually.”
There are also calls to publicly expose unscrupulous business owners to prevent damages. Professor Lee said, “Since consumers move only once every two or four years, they inevitably lack information about packing moving companies. If the names of companies that repeatedly cause damages and fail to compensate are disclosed on cafes or moving platforms where consumers search when moving, it would be effective.”
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