Hanssem Declares Living Tech Company Status... "Achieving 4 Trillion Won in Sales by 2026"

Jintae Kim, CEO of Hanssem

[Asia Economy Reporter Donghyun Choi] Kim Jintae, CEO of Hanssem, expressed his ambition to achieve sales of 4 trillion KRW by 2026 through a leap into a living tech company. This is the first management blueprint presented after Hanssem’s major shareholder changed to IMM Private Equity (IMM PE) in early January.

According to Hanssem on the 16th, the company held an ‘Analyst Day’ targeting major domestic and international securities firms at Conrad Seoul in Yeouido the day before. At the event, CEO Kim announced five key business initiatives to achieve 4 trillion KRW in sales by 2026: ▲digital transformation ▲construction process innovation ▲customer experience innovation ▲maximizing operational efficiency ▲and active new business promotion. While Hanssem was previously recognized in the domestic home interior sector based on manufacturing and distribution, it plans to advance as a ‘living tech company’ based on IT technology that combines online and offline.

Hanssem will accelerate ‘digital transformation’ in the home remodeling sector by adding IT technology to the foundation of design, logistics, construction, and distribution competitiveness it has built so far. To this end, it plans to enhance the ‘information search’ area where customers can easily find all remodeling information and design by themselves.

Hanssem has an offline network consisting of about 900 dealerships nationwide, over 60 large showrooms, more than 5,000 professional design consultation personnel, and about 8,000 construction partner technicians. It also possesses remodeling construction data accumulated from about 60,000 cases in the 3D design program ‘Home Planner.’ On top of this, it plans to enhance the core function of the online platform, information search.

Hanssem plans to shorten the construction period of entire home remodeling projects, which currently takes about ten to fifteen days, to a maximum of 5 days by 2024. The construction process, which causes dust, noise, and vibration throughout the construction period, has been the main ‘psychological barrier’ preventing customers from readily undertaking remodeling. Hanssem plans to realize ‘5-day remodeling construction’ through ‘innovation in construction methods’ and ‘standardization of construction’ that can reduce construction time while improving finishing quality.

Additionally, Hanssem will strengthen the enterprise resource planning (ERP) system for the entire pre-construction process including measurement, construction schedule management, and supervision, and increase customer satisfaction through construction innovation that significantly reduces complaints such as dust, noise, and vibration during construction. Along with this, customers will be able to check all remodeling stages including construction, supervision, and after-service (AS) online, enhancing quality satisfaction and achieving customer delight.

Hanssem plans to expand its business scope in the home interior field through active new business discovery such as overseas expansion, smart home, and mergers and acquisitions (M&A). Based on its successful domestic model, the overseas business will partner with offline home remodeling operators in the U.S., Japan, China, and Southeast Asia for online home remodeling businesses abroad. The smart home business will also be actively developed by introducing a ‘smart home package’ where lighting, hoods, cooktops, electric beds, curtains, etc., are linked via IoT. Furthermore, Hanssem plans to actively pursue investments in home remodeling startups, strategic alliances with related companies, and M&A to broaden its core business areas.

Moreover, Hanssem will enhance corporate value through profitability improvement, focus on core businesses, and increased asset efficiency, while continuously implementing mid- to long-term shareholder return policies such as maintaining a dividend payout ratio of over 50%, quarterly dividends, and share buybacks.

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