Hanssem Changing Ownership, Global Top 10 'Winning Move'

IMM PE and Synergy Expected
'Apeun Songarak' Hanssem Mall Strengthens Online Channel
Collaboration with Samsung, Lotte Department Store Amid Interior Platform Competition
Leading Smart Home Market Entry, Global Leap Beyond Domestic Furniture

[Asia Economy Reporters Kim Jong-hwa, Kim Bo-kyung] Expectations are growing for the synergy to be demonstrated by Hanssem and the private equity firm IMM Private Equity (IMM PE).

On the 14th, Hanssem signed a memorandum of understanding (MOU) to sell shares held by IMM PE, the largest shareholder and honorary chairman and founder Cho Chang-geol (82), along with some related parties. The shares to be sold are reported to be about 20% of Hanssem's total shares.

IMM PE is affiliated with IMM Investment, the largest shareholder holding 36.24% of the online furniture company Ohaim INT, which operates the furniture brand ‘Lady Furniture’.

In a situation where demand for home decoration is increasing due to COVID-19, Hanssem’s ‘Hanssem Mall,’ which had been criticized for limitations in channel expansion, can now expect synergy effects with Ohaim INT, a strong operator in online channels.

Although fierce competition will unfold with online interior vertical platform ‘Today’s House,’ Shinsegae Department Store affiliate ‘Casamia,’ and Hyundai Department Store affiliate ‘Hyundai Livart,’ Hanssem is determined to become one of the top 10 global companies beyond the domestic furniture industry through collaboration with Samsung Electronics and Lotte Department Store.

Hanssem and Samsung Electronics have recently strengthened their collaboration by launching products such as the premium kitchen brand Kitchen Bach’s kitchen furniture material ‘Fenix’ applied to Samsung Electronics’ Bespoke refrigerator doors, remodeling products, and Hanssem Rehouse’s ‘Smart Package,’ which allows customized configurations of Samsung Electronics’ home appliances. They plan to continue collaboration in various ways, including co-developing products, sharing offline stores, and countering the collaboration between LX Hausys and LG Electronics.

They are also expanding their distribution network by partnering with Lotte Department Store. This year, Hanssem Rehouse has expanded stores nationwide, including the Lotte Department Store Bucheon Jung-dong branch (March), Hanssem Design Park Lotte Department Store Ulsan branch (March), Hanssem Design Park Busan Gwangbok branch (June), Hanssem Design Park Maison Dongbusan branch (June), and Hanssem Design Park Lotte Department Store Busan Dongnae branch (scheduled for July), covering the metropolitan area, Busan, Gyeongnam, and Honam regions.

Hanssem is also accelerating its entry into the smart home market. Recently, it invested 3 billion KRW in ‘GoQual,’ a home IoT (Internet of Things) specialized venture company, securing a pioneering position in the smart home sector, which is the future of the interior market.

Despite IMM PE’s push for the sale, the outlook for Hanssem is generally positive. An industry insider said, "The online segment, which was Hanssem’s weak point, has been strengthened, and following the Rehouse business, the smart home business has also been effectively preempted. Although there will be internal changes due to the change in major shareholders, market dominance is expected to be maintained."

Meanwhile, after the share sale, Honorary Chairman Cho is reportedly planning to focus on public interest projects. In 2015, Cho pledged to donate 2.6 million shares to the public interest foundation Taejae (泰齋) Foundation (formerly Hanssem DB View Research Foundation), and at that time donated 1.66 million shares. He plans to donate the remaining shares through this sale.

A Hanssem official said, "Honorary Chairman Cho has long wanted to contribute to society, and with this sale, he will more concretely fulfill his promise. Hanssem will create a successful online-centered model based on its offline strengths focused on the Rehouse business and will leap forward as a global company beyond the domestic market."

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