[CEO Rivals] 'Ace' Science Major Brother vs. 'Simons' Liberal Arts Younger Brother Bed Battle

Conflict Between Two Brothers Over 'Price Increase' Since Early Year
Domestic Science Major Older Brother 'Ace' vs Overseas Liberal Arts Younger Brother 'Simons'
Both Brothers Insist on Reclusive Management... Recent Moves Show Different Temperatures

[Asia Economy Reporter Donghyun Choi] Perhaps it was a foretold fight. This is the story of brothers An Seong-ho, CEO of Ace Bed (55), and An Jeong-ho, CEO of Simmons (52). These two, who are extremely reluctant to engage in external activities and media exposure, have been waging a public relations battle over 'price increases' since the beginning of the year. When An Yusu, the founder of Ace Bed (93), divided the domestic bed market between his two sons in the early 2000s, he probably did not expect this kind of situation. He likely hoped they would realize his long-standing philosophy of contributing to the nation's sleep health through fair competition and harmony. However, sometimes money is thicker than blood. The deep recession in the furniture industry has turned the brothers' relationship from competition and harmony into confrontation and conflict.

Why Are the Two Brothers, Who Had Quietly Gone Their Separate Ways, Now Fighting?

The first to draw the sword was the younger brother. Simmons announced on the 2nd of last month through a press release that "we will not raise prices this year, following last year." At the same time, they mentioned competitors, saying, "Ace raised prices by up to 20% last year, and Sealy Bed and Tempur also raised prices twice."

The older brother counterattacked a week later. Ace stated, "We raised prices only twice over five years from December 2017 to December last year," and added, "In contrast, Simmons, which has been promoting price freezes for the past two years, raised prices six times since late 2017 and three times in 2021 alone." They further explained, "The prices of Simmons' mattresses 'William' and 'Henry' increased by about 65-87% compared to December 2017, whereas Ace's bestsellers, 'Hybrid Tech' Red and Blue, only increased by about 30-33%."

The brothers' confrontation is interpreted as being triggered by Simmons, the industry's second-largest company, rising to a level that threatens Ace, which has reigned as the throne for decades. When the older brother Seong-ho inherited Ace in 2002, sales were 100.3 billion KRW, growing 3.4 times to 345.4 billion KRW in 2021. The younger brother Jeong-ho inherited Simmons in 2001 with sales of 22.8 billion KRW and grew it 13.4 times to 305.4 billion KRW in 2021.

Domestic Science Major Older Brother vs. Overseas Liberal Arts Younger Brother

The eldest son, Seong-ho, who inherited Ace Bed established by their father who fled alone from Sariwon, Hwanghae Province at age 16 and founded the company in 1963, is a pure domestic graduate. He graduated from Korea University with a degree in geology in 1991 and immediately joined Ace Bed. After gaining two years of hands-on experience on the production line, he was promoted to planning director in 1993 and began formal management training. He has led the company as CEO of Ace Bed for over 20 years since 2002.

Seong-ho reportedly enjoyed playing alone in his father's bed factory since childhood. During vacations, he worked part-time at the factory, observing the bed manufacturing process. By today's standards, he fits the typical image of an 'engineering student' and 'nerd.'

He inherited his father's management philosophy embodied in the early 1990s hit advertisement, "A bed is not furniture but science." Believing that advanced technology would lead the bed industry in the future, he focused solely on technology development rather than reckless new businesses. He led the development of the 'Hybrid Power Spring' and the 'Hybrid Z Spring,' which involved a 10 billion KRW investment over 16 years, securing dozens of global patents.

The younger brother Jeong-ho is an overseas-educated graduate who completed his economics degree at Southern Illinois University (SIU) in the U.S. in 1997. He joined Simmons as planning director in 1998 and immediately began management training. He became CEO in 2001, a year earlier than his older brother.

Jeong-ho frequently visited video rental stores during his childhood. However, his interest was not in movies or cartoons but in TV commercials. When renting videotapes, he was fascinated by the commercials before and after the main content. He compared domestic and foreign advertisements. When watching cartoons, he did not just flip through the pictures but liked to imagine the scenes, showing a penchant for daydreaming.

Perhaps influenced by this, he is said to pay particular attention to advertising and marketing when Simmons conducts such business. During his studies in the U.S., he even recorded local bed brand commercials and sent them to the company. The 'bedless bed commercial' and 'bedless pop-up store,' which Simmons introduced from 2019 to last year and gained popularity, are among the bold marketing initiatives he promoted.

The Older Brother Still Reclusive, the Younger Brother Gradually Warming Up

Both brothers are known for rarely engaging in interviews or external activities. The fact that Ace and Simmons are sibling companies is also kept under wraps. When the brothers were in their 30s, they used to gather once a year with employees for a soccer match, but they no longer do so, citing the burden of public scrutiny.

Seong-ho is truly a 'reclusive manager.' He is said to have a conservative side similar to his father. Since the first-ever press conference held 51 years after Ace's founding in 2014 and a product launch event two years later, he has not appeared at any external events. His personality is well reflected in his single-minded management style, focusing solely on beds without pursuing other new businesses.

In contrast, Jeong-ho is gradually expanding his public engagement. Last October, he held a press conference at the Simmons Factorium in Icheon, Gyeonggi Province. This showed his confidence that the company is close to becoming the industry's number one. He also appears occasionally on the company's YouTube channel, mainly discussing advertising. Jeong-ho proudly recalled, "When the advertising storyboard was just out, I was driving and heard a piece of music that I thought would be perfect for the commercial, and it was selected." This song is 'Warm on a Cold Night' by the British electronic duo Honne, which gained fame through a Simmons commercial in 2017. It played a decisive role in Simmons' reputation as a 'background music (BGM) hotspot' in advertising.

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