[Exclusive] Industry Eyes on Ohouse's Launch of Construction Subsidiary Amid Frozen Market

Unconventional Entry of Platform Company into the Stagnant Furniture and Interior Market
Growing Influence of Community Among Younger Consumers... Industry Opinions Diverge
"Not a Large-Scale Expansion"... Calls for Caution Within the Company

Bukitplace, the operator of the lifestyle platform Ohouse, has recently established a specialized interior installation subsidiary named Ohouse Construction. While the company had previously engaged in direct installation services in select areas such as kitchens and flooring, the creation of an independent legal entity is seen as a symbolic move to formalize this business. With a platform company entering the stagnant furniture and interior industry, the sector is paying close attention.

According to industry sources on November 11, Ohouse Construction, a subsidiary of Bukitplace, completed its corporate registration on September 22. The company was established with a capital of 500 million won, a par value of 500 won per share, and a total of 1 million issued shares. Its business objectives include 26 items such as interior construction and interior design. As a result, Bukitplace now has two subsidiaries, including Ohouse Pay, which was launched in April.

Image guiding wallpaper installation by Ohouse (left) and a review of the wallpaper installation. Ohouse

This move is seen as an extension of Ohouse's ongoing "Life Event Integrated Solution" strategy. On October 14, Ohouse unveiled its vision to address residential challenges that arise at major life milestones such as moving, marriage, and childbirth through a rebranding initiative. The company aims to evolve into a "one-stop platform" by combining user-generated content data and technological capabilities, covering everything from purchase to installation. The establishment of this subsidiary is also viewed as being aligned with this strategy.

Ohouse introduced its interior installation service in 2019 and currently offers direct installation services in certain areas such as kitchens, wallpaper, flooring, and linoleum. For complete installations, Ohouse provides a brokerage service that connects customers with installation companies. Large installation companies often avoid partial installations due to low profitability. According to the Ministry of Land, Infrastructure and Transport, the number of nationwide residential lease transactions from January to April this year reached 950,000, more than four times the number of sales transactions (220,000). Since tenants find it difficult to make structural changes without the landlord's permission, demand for partial installations is high. This imbalance between supply and demand is cited as a key reason why Ohouse is strengthening its focus on the interior installation sector.

The furniture and interior industry, which has been in a slump, is divided in its response to this unprecedented move by a platform company. Some believe it could serve as a catalyst to revitalize the market, as Ohouse continues to function as a hub connecting consumers and installation companies alongside furniture sales. On the other hand, there are concerns that if some installation volume shifts to Ohouse, existing companies may gradually feel the pressure. Ohouse has already established itself as a "reference platform" for exchanging interior ideas among younger consumers, and as more consumers choose companies within the platform, Ohouse's presence is expected to grow. An industry insider commented, "While Ohouse is not an immediate competitor, its growing influence among young people could spur increased activity across the entire interior market."

Bukitplace is cautious about overinterpreting this move, emphasizing that it is not a strategy aimed at large-scale business expansion. Since major domestic furniture and interior companies are both material suppliers and online mall partners, the company is maintaining a careful stance internally. A Bukitplace representative stated, "Ohouse is striving to provide a standardized installation experience that both customers and companies can trust," adding, "We established the subsidiary to provide the direct installation services we have consistently offered in a more stable manner."