Boilers Now Available for Rent... Kyungdong Navien and Kiturami Launch Full-Scale Rental Businesses

Kiturami to Launch Rental Business Next Month
Kyungdong Navien Establishes Wholly Owned Subsidiary for Subscription Services

The era of renting home boilers has arrived. This shift comes as Kyungdong Navien and Kiturami, the two leading companies in the domestic boiler industry, have both announced concrete plans for rental businesses. Rental services allow consumers to use boilers without the burden of high upfront costs and also provide maintenance support, which is expected to drive demand for replacing aging boilers.

According to the industry on June 9, Kiturami plans to launch rental services for eco-friendly boilers and other heating and cooling products next month. To this end, Kiturami signed a strategic partnership with Hyundai Rental Care in January of this year. Once the rental service is implemented, Kiturami will utilize Hyundai Rental Care's nationwide service network and its team of professional care managers. Through this service, customers will be able to rent not only Kiturami's eco-friendly home boilers, but also the Hwan-gi Plus air purification system and window-type air conditioners. Customers will also benefit from after-sales services such as regular product inspections, repairs, and upgrades to the latest models. The two companies are also preparing to jointly develop and launch new products exclusively for rental.

Kyungdong Navien has also recently established a wholly owned subsidiary, Kyungdong C&S, to focus on its rental business. The purpose is to provide professional and systematic management of related products. In October 2023, Kyungdong Navien launched a rental service for ventilation air purifiers, and in April this year, it introduced rental services for the '3D Air Hood' and the 'Ventilation Air Purifier Magic Plus.' The company is also preparing rental offerings for upcoming products such as the 'Dehumidification Ventilation Air Purifier,' which combines ventilation and dehumidification functions, as well as for its core products like boilers and sleep mats.

The introduction and management of Kyungdong Navien's products are handled by specialized personnel known as 'Navien Partners.' Navien Partners are responsible for ensuring that customers can use their products in optimal condition by carrying out tasks such as filter replacement, exterior cleaning, and regular performance inspections.

The reason boiler companies are accelerating their rental businesses is that consumer demand for rentals and subscriptions has been increasing, which is expanding the market. According to KT Economic Research Institute, the domestic rental market is expected to grow from about 40 trillion won in 2020 to 100 trillion won this year. Companies believe that rental services could provide a breakthrough in the saturated domestic boiler market. Moreover, because boilers are used most frequently in winter and can be cumbersome to maintain, with repair costs incurred in case of breakdowns, the industry explains that rental services, which include care services to maintain product quality, are highly effective.

An industry official stated, "In response to steadily increasing consumer demand, each company plans to offer a variety of products through rental services that eliminate concerns about upfront costs," adding, "Both companies are expected to continue expanding their lineup of rental products in the future."