Korea Consumer Agency Issues Winter Boiler Damage Advisory
Spike in Claims for Heating Failures and Leaks from December to March
Key Solutions Discussed with Top Four Industry Players
As the use of heating and hot water increases during the winter season, consumer complaints related to boilers are concentrated during this period. However, the rate of compensation, such as refunds or repairs, remains below half.
According to the Korea Consumer Agency on November 19, a total of 584 applications for boiler-related dispute mediation were received over the past five years, from 2021 to July this year. Of these, more than half-330 cases (56.5%)-were concentrated between December and the following March each year, which is the winter season.
The main reasons for disputes were product defects, accounting for 61.8% (361 cases), followed by dissatisfaction with installation at 28.1% (164 cases). Other reasons included dissatisfaction with administrative processing, such as missing applications for eco-friendly boiler subsidies, at 4.3% (25 cases), and unfair billing at 3.2% (19 cases).
An analysis of the specific types of 'product defects' and 'installation dissatisfaction,' both of which affect boiler functionality, showed that among product defects (361 cases), heating and hot water malfunctions were the most common at 56.5%. Among installation dissatisfaction cases (164 cases), incorrect installation of major components such as piping and flues was the most frequent at 69.5%.
Of the 584 boiler-related dispute mediation applications received over the past five years, 73.6% (430 cases) were related to four companies. By brand, Kyungdong Navien accounted for 25.3% (109 cases), Daesung Celtic Enersys for 23.3% (100 cases), Rinnai Korea for 9.1% (39 cases), and Kiturami for the largest share at 42.3% (182 cases).
However, only 42.3% (247 cases) of these dispute mediation applications resulted in compensation, such as refunds or repairs. By company, Kyungdong Navien had a relatively higher resolution rate at 50.5%, while Kiturami had the lowest at 36.8%. The Korea Consumer Agency explained that the resolution rate for boilers is lower than for other products because the manufacturer and installer are often different entities, leading to frequent disputes over responsibility for product defects and installation issues.
Last month, the Korea Consumer Agency held a meeting with the top four companies receiving the most dispute mediation applications, shared the current status of these applications, and discussed ways to prevent and resolve recurring issues. Boiler companies agreed on the need to proactively address consumer complaints, strengthen voluntary consultation systems, and thoroughly educate and manage dealerships to prevent future issues.
The Korea Consumer Agency advised consumers to prevent boiler-related problems by: ▲ verifying the legal qualifications of the installation company when selecting a boiler; ▲ carefully checking for gaps or leaks in flues and pipes after installation and conducting a test run with the installer; and ▲ checking for leaks at pipe connections before operating the boiler in winter and installing insulation to prevent freezing.
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