More than 70% of the automobile repair workshops in South Korea participating in a new survey have reported that the country's insurers have started unilateral reductions in repair bills.
According to a news report published in the https://biz.chosun.com/ the survey was conducted by the Korea Federation of Small and Medium Enterprises and involved 307 automotive repair companies across the country.
The survey further revealed that unreasonable transaction practices, such as delayed payments and unpaid interest on delays also continue.
The survey also analysed the contract contents between repair companies and the four largest insurance companies by market share, payment status, and experiences of unfair practices. The main reasons cited for the reductions included
- non-recognition of metalwork and painting costs
- non-recognition of certain repair items
- excessive reduction of working hours
- non-recognition due to non-consultation on new models
The survey was conducted from 14 July to 30 July 2025. The survey found that more than 70 out of 100 repair cost claims were reduced by an average of 10% during the last three years.
The survey found that over 95% of the participating repair workshops were of the opinion that to resolve these issues a standard contract should be introduced that should include the following clauses.
- disclosure of repair cost reduction details
- clarification of repair cost claim and payment timing
- regulations for payment of interest on delayed payments
- guarantee of repair cost payment