Trillion-Won High-Efficiency Home Appliance Market Opens, Companies Engaged in Silent War

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[Asia Economy Reporter Changhwan Lee] The home appliance industry has become active as the government’s third supplementary budget (supplementary budget) includes an expansion plan for the high-efficiency home appliance rebate program, which is expected to have a sales promotion effect worth trillions of won.

They are not only actively developing high-efficiency home appliances but also strengthening promotion and marketing and providing additional benefits to consumers, engaging in a silent war.

On the 4th, the government allocated a budget of 300 billion won for the “Top Efficiency Home Appliance Purchase Cost Rebate Program” in the third supplementary budget. The “Top Efficiency Home Appliance Purchase Cost Rebate Program” is a project in which the government refunds 10% of the purchase amount to promote energy saving and expand the consumption of high-efficiency home appliances.

Led by the Ministry of Trade, Industry and Energy and the Korea Energy Agency, a budget of 150 billion won was allocated and implemented on March 23, but this time the scale was greatly expanded. This is because the project’s effect was greater than expected, and it also aims to support the home appliance industry struggling due to the novel coronavirus infection (COVID-19).

According to the Korea Energy Agency, the rebate amount applied for by consumers during one month after the project started in March was about 20 billion won, resulting in a product purchase effect of about 200 billion won. Sales of rebate-eligible home appliances also increased by 122% compared to the same period last year.

As the government allocates additional budget, competition in the home appliance industry is expected to intensify. Simply calculating the 450 billion won invested in this project this year, a sales effect of 4.5 trillion won in home appliances can be expected.

In particular, Samsung Electronics is expected to benefit as the government included clothes dryers as an additional eligible item this time. Currently, the high-efficiency dryers eligible for rebates are only Samsung Electronics products.

Since dryers are new home appliances that have recently attracted consumer interest, Samsung Electronics plans to actively sell the latest products such as the Grande AI dryer by making the most of this opportunity.

With dryers included as rebate targets, other companies are also actively developing high-efficiency products.

LG Electronics is currently developing high-efficiency dryers and is known to plan to launch products on the market within a month or two. Small and medium-sized home appliance companies such as Winia Daewoo, Winix, and Otek Carrier are also expected to actively enter the high-efficiency home appliance market.

Marketing is also being strengthened. Samsung Electronics is currently running a promotion where consumers can receive benefits worth up to 1 million won, including the government rebate cost cap of 300,000 won. LG Electronics also provides benefits of up to around 1 million won depending on the item. Companies are currently considering ways to extend the benefit period and expand the target range.

This content was produced with the assistance of AI translation services.