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Interior renovation work in Korea often begins with nothing more than a quotation and a verbal understanding. Then, midway through, the contractor says “that item was never in the quote – it is extra work,” or the promised move-in date passes with the site unfinished. In almost every case, what decides the outcome is what the parties put in writing when the contract was formed.

[Contents]

1. Why a quotation alone is not enough

2. Seven terms your renovation contract must contain

3. Being asked to pay for “extra work”

4. When the work runs late – the delay-penalty clause decides everything

5. How long you can demand defect repairs

6. If a dispute has already started

1. Why a quotation alone is not enough

Interior renovation is legally a contract for work (도급계약). Civil Code Article 664 (민법 제664조) defines it as an agreement under which one party undertakes to complete a certain work and the other undertakes to pay remuneration for the result. No particular form is required, so exchanging a quotation and starting the work is already enough to form a binding contract.

The difficulty is not formation but proof. When a dispute arises, the court must determine what the parties actually agreed to. A quotation typically lists items and prices but says nothing about the boundary of the work scope, the grade of materials, the completion date, or liability for delay. That is why the same argument – “was that item included or not?” – recurs in most renovation disputes.

Individual owners are usually at a documentary disadvantage. The contractor holds the bill of quantities, site photographs and work logs, while the owner is left with a quotation and some KakaoTalk messages. Drafting a contract is, in substance, creating the evidence you will later need to rely on.

2. Seven terms your renovation contract must contain

Even for a modest project, the following should be recorded in writing.

1. Scope of work – exactly what is included. Break it down by trade (demolition, plumbing, electrical, carpentry, painting) and also list what is excluded.

2. Construction period – specify commencement and completion as calendar dates. “About four weeks” leaves the starting point unclear and makes delay hard to establish.

3. Criteria and procedure for extra work – define what counts as extra work and require prior written agreement (including text or KakaoTalk) on both scope and price.

4. Delay penalty – a fixed daily amount or a percentage of the contract price payable if completion is late.

5. Defect liability period and repair procedure – including how defects are notified and by when repairs must begin.

6. Conditions for the final payment – tying the balance to completion and inspection favours the owner.

7. Brand and model of key materials – particularly windows, flooring, kitchen units and sanitary ware, where unit prices vary widely.

Using the standard form contract for interior and window works published by the Korea Fair Trade Commission as a starting point, then supplementing it for the specific site, is a practical approach.

3. Being asked to pay for “extra work”

When additional money is demanded mid-project, the first question is whether the item was already within the agreed scope. If it was, the fact that the contractor labels it “extra work” does not by itself create an obligation to pay more.

If the item genuinely falls outside the contract, the contractor must still show a separate agreement on the extra work in order to charge for it. In practice three points are examined:

1. What is being added and why – design change, site conditions, or the owner’s own request

2. The basis of the price – how it differs from the existing quotation and bill of quantities

3. Whether the owner in fact consented to the additional cost

If the contractor proceeded unilaterally without consent and then billed for it, there is substantial room to dispute the claim. But the reverse also holds. If the owner clearly approved by writing “please go ahead” in a text or KakaoTalk message, that message can be treated as evidence of agreement to the extra work and its price. Instructions given on site are themselves evidence, so avoid approving execution before the price has been settled.

4. When the work runs late – the delay-penalty clause decides everything

What an owner can claim for late completion turns largely on whether the contract contains a delay-penalty clause.

Where there is a clause. A term such as “0.1% of the contract price per day of delay” is a liquidated damages provision under Civil Code Article 398 (민법 제398조). Because the amount is fixed in advance, the owner may claim it without itemising and proving actual loss. Note, however, that under Article 398(2) a court may reduce an amount that is unreasonably excessive, and periods of delay attributable to the owner (design changes, late material selection) are normally deducted.

Where there is no clause. The owner must claim damages for non-performance and prove each actual loss – temporary accommodation, delayed relocation costs, lost business income. Civil Code Article 393 (민법 제393조) then applies: loss beyond ordinary damage is recoverable only where the debtor knew or could have known of the special circumstances.

For that reason, if the completion date matters for a particular reason, record that reason at the contracting stage. Noting in the contract or by message that a lease begins on a specific date, or that an opening is scheduled that day, becomes valuable material when foreseeability of special damage is later contested.

5. How long you can demand defect repairs

Where the completed work is defective, the owner may fix a reasonable period and demand repair, and may claim damages in lieu of or together with repair (Civil Code Article 667, 민법 제667조). Repair cannot be demanded, however, where the defect is not material and repair would require excessive cost.

Two limitation regimes exist. As a rule, repair, damages and rescission must be exercised within one year from delivery (Article 670, 민법 제670조). But a contractor for land, buildings or other structures bears defect liability for five years after delivery – ten years where the structure is of stone, lime, brick, metal or similar materials (Article 671, 민법 제671조).

Which regime applies to a given renovation depends on its nature – simple replacement of finishes is treated differently from work affecting structure or building services. Stating the defect liability period in the contract removes much of this argument in advance.

6. If a dispute has already started

The first step is preserving evidence. Keep the contract, quotation, bill of quantities, KakaoTalk and text exchanges, payment records, and stage-by-stage site photographs. In renovation disputes, where formal documents are thin, messenger exchanges and photographs often reveal the real content of the bargain.

Next, separate the issues. Whether the dispute concerns extra-work charges, delay, or defects changes the governing principles, the facts you must prove, and whether withholding the final payment is advisable. Withholding the entire balance out of frustration can itself put the owner in breach, so the decision needs care.

Cheongchul Law Firm has handled numerous construction matters involving the interpretation of works contracts, extra-work claims, delay penalties, valuation of work performed, and defect disputes. If you need a renovation contract reviewed, or a dispute has already arisen, please bring your contract and message records to a consultation.

This post is provided for general legal information only and does not constitute legal advice on any specific matter. Outcomes depend on the facts and evidence of each case.