Remodeling and interior design in Korea

Remodeling and interior design in Korea

With the growing number of older buildings, the belief is that the remodeling business will grow. Increasing incomes and customization trends support this belief. The Construction Economy Research Institute of Korea (CERIK) reported that the domestic market size of interior and remodeling was KRW 9.1 trillion in 2000 which increased to 28.4 trillion in 2016 and is expected to reach 40 trillion in 2020.

Number of buildings 20 years or older

Unit: 1,000

2017	2018	2019	2020	2025	2030
3,381	3,592	4,091	4,886	5,895	7,642

Source: Shinyoung Securities Co., Ltd.

As much as the industry is growing, the number of competitors is also. As the market reached KRW 20 trillion, the number of new companies has increased rapidly. Moreover, there has been a movement in retail companies to enter the interior and remodeling business. However, as the competition grows, market development will weaken as Koreans can be critically sensitive to price.

The current market is consolidating with companies merging with large conglomerates to survive. These conglomerates are merging all types of companies such as furniture, remodeling, flooring, and other companies to create a ‘Total Living-Interior Solutions’ as a new business model. 

If you would like to identify and capitalize on business opportunities in Korea, let IRC Guide your Way!  www.ircconsultingkorea.com, Jacob at lsh@ircconsultingkorea.com