SP Samhwa Reduces Paint Price Increase..."Stabilizing Prices, Minimizing Client Burden"

Price Increase Rates for Paint Significantly Reduced by Up to Half

SP Samhwa (formerly Samhwa Paint Industry) has reduced the scale of its planned paint price increase to half of the originally intended level. Despite growing cost pressures due to continued increases in raw material prices, the company made this decision to promote mutual growth with its partners and to support the government’s price stabilization policies.

SP Samhwa (formerly Samhwa Paint Industry) Ansan Plant Overview

SP Samhwa announced on April 3 that it has significantly reduced the price increase rate applied to its main products, lowering it by up to half (from 20% to 10%). Last month, SP Samhwa had decided to raise paint prices by 10-20% and thinner prices by 40%.

The company plans to flexibly apply price increases according to the characteristics of each product group and current market conditions, with a focus on minimizing the burden on its partners.

SP Samhwa has declared that building trust and maintaining close relationships with its partners take precedence over profits, and that it will absorb the increased costs internally to minimize market disruptions. This decision is based on a company-wide consensus to ease the burden on distribution agencies and small business partners across the country who are struggling due to a downturn in the construction industry and weakening consumer sentiment.

As of April 1, the price of naphtha stood at 1,241 dollars per ton, nearly double the 640 dollars recorded on February 27, before the Middle East crisis began.

An official from SP Samhwa stated, “This measure is intended to share the pain of our partners who have contributed to SP Samhwa’s growth and development over the past 80 years,” adding, “This is not an adjustment in response to policy changes by a specific company, but rather a decision to protect our partners even if it means incurring short-term losses.”

The official continued, “Although it is difficult to maintain profitability due to rising costs, we will carefully manage our operations by absorbing the cost burden internally, including through supply chain diversification, and minimizing market disruptions.”

On April 1, KCC withdrew its price increase plan that had been scheduled for April 6. With SP Samhwa also lowering its price increase rate, it appears that the trend of paint companies withdrawing or adjusting their price hikes will continue. After paint manufacturers announced plans to raise prices citing increases in raw material costs, the Fair Trade Commission investigated major paint companies for collusion on March 30.

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