ASIA’S FLOORING TALKS: SOUTH KOREA FLOORING MARKET

ASIA' S FLOORING TALKS

SOUTH KOREA FLOORING MARKET

Interview with Mr. Sun-Wook Baek, Journalist at THE LIVING, South Korea’s leading interior and life magazine, that provides the latest information about trends of architecture, building materials, living design and interior markets.

What is the recent situation of the real estate, housing and flooring market in Korea?

Recently, the Korean real estate and housing markets have not been in a positive situation overall, due to the economic downturn that has been going on since 2022. In fact, real estate transactions have decreased significantly since 2022 due to inflation and high interest rates.

* S. Korea's home sales volume fell 49.9 percent year-on-year in 2022

As real estate transactions have decreased, demand for interior design has naturally decreased, and demand for flooring has also decreased. However, due to the efforts of the Korean government (promoting redevelopment and reconstruction, policies to revitalize housing transactions), the real estate and housing markets have recently gradually recovered. Also, despite difficulties, trend-driven hit products continue to emerge in the flooring market, and consumer sentiment is gradually reviving due to these products.

What are the most recent consumer trends related to interior design and choice of flooring products?

In the Korean interior market, 'modern' and 'minimal' styles are gaining huge popularity. There are many consumers who seek neat and concise sophistication rather than splendor. As for the color, interior design using neat achromatic colors is in trend, and recently, more and more consumers are looking for warm colors such as beige and ivory.

As for flooring products, flooring materials with square tile designs that go well with modern interiors are popular. Consumer interest in flooring materials that create clean and sophisticated spaces such as poserine tiles and marble flooring is high.

There is also a high demand for flooring products that embody real tiles and marble designs. The product's structure is plywood or board (wood) at the bottom and is coated with film paper with a similar design, not real tiles or marble at the top. It is popular because it keeps the luxurious feeling of real tiles and marble, while taking advantage of the floor, such as excellent walking, warm, and reasonable prices.

In addition, in the Korean flooring market, wide wood floors measuring 160 ~ 190 mm in width are gaining popularity. This is because the wide floors create a more luxurious and cool space. For your information, just a few years ago, most floors in the Korean market were around 120 mm wide.

What are the target markets for Korean producers of flooring and other products related to interior design or building and construction sector?

Of course, the goal of all companies leading the market is the overseas business. The domestic market is relatively small, and constantly, architecture and material companies that believe they are globally competitive are knocking on the doors of overseas markets, aiming to operate in a larger market. This is because growth in overseas markets leads to company’s development and brand reputation.

In particular, the market that domestic related companies are focusing on is the North American market. Primarily, the market itself is very large and the awareness and position of Korean products are good, so it has a good environment to compete. In addition, they are constantly making efforts to increase their influence in the European market, and Asian markets such as China, Thailand, and Vietnam are also actively targeting them. Recently, they are also interested in the Indian market.

In addition, although specific goals may vary from company to company, the opinions of several comprehensive interior companies and flooring companies that have recently been interviewed aim to be among the top five in the global market share in the category, such as LVT flooring and artificial marble.

How do Korean companies remain competitive in the international markets. What are some of the highlights of the “Made in Korea” flooring products?

The quality competition in the Korean flooring market has been very fierce for a long time. This is because all other advantages, such as durability and product uniformity, have been ignored in the domestic market as well. Therefore, Korean products are of very good quality, and this advantage seems to be a competitive advantage in overseas markets.

Also, Korea is sensitive to trends across all sectors. That's why Korean flooring companies are used to responding to changes and are constantly introducing products with designs and functionality that meet global trends, even in overseas markets. I think this fast trend catch is also an important advantage of Korean flooring companies.