[Report] "Home Appliances Now Subscribed Like in Five-Star Hotels"... LG's 'Ultra-Premium' Trend Sweeps Apgujeong Reconstruction

Inside the SKS Showroom, LG's Ultra-Premium Built-in Appliances
Top 1% LG Master Engineers Offer Five Years of After-Sales Care
Expanding into the Trillion-Won B2B Market... Laying the Foundation for an AI Home Ecosystem

On July 16, at a showroom on Hakdong-ro in Gangnam-gu, Seoul, I encountered a striking scene. An induction cooktop and dishwasher were seamlessly embedded beneath a massive natural stone table. A subtly metallic refrigerator was perfectly flush with the wall, and the built-in wine cellar—with its oak racks and carefully orchestrated lighting—embodied the pride of a collector. Even the pure white washer-dryer, fitted snugly between wardrobes like bespoke clothing, achieved both aesthetic sophistication and efficient space utilization. It was a scene where appliances and furniture blended together without boundaries—an ideal living environment aspired to by SKS, LG Electronics’ ultra-premium built-in home appliance brand.

On the 16th, LG Electronics premium home appliances were built-in at the 'SKS' (Signature Kitchen Suite) showroom in Gangnam-gu, Seoul. Photo by Jin-young Kim

Recently, the value of home appliance options as a determinant of residential space value has been growing in the construction market. This trend is why LG Electronics, which already dominates the B2C (business-to-consumer) appliance market with subscription models and professional care services, has ventured into the B2B (business-to-business) market as well.

As its initial initiative, LG Electronics is partnering with Hyundai Engineering & Construction to introduce a ‘B2B appliance subscription service’ for more than 7,000 households in the Apgujeong redevelopment districts (zones 2, 3, and 5) in Seoul. This innovative case marks the first time the rapidly expanding B2C appliance subscription model has been directly transplanted into large-scale new apartment developments (B2B supply).

The core of this appliance subscription model, introduced through this partnership, is that it offers product selections tailored to each household’s unique needs, along with differentiated after-care services. First, depending on the zone, members will be provided with a built-in premium appliance package—including five to seven essential products such as a refrigerator, washing machine, dryer, styler, and dishwasher. Notably, for high-end residences in zones 3 and 5 penthouses, LG’s ultra-premium brands ‘SKS’ and ‘LG Signature’ will be selectively provided, further enhancing the status of these living spaces.

On the 16th, a docent is explaining the functions of built-in home appliances at the 'SKS' (Signature Kitchen Suite) showroom in Gangnam-gu, Seoul. Photo by Jinyoung Kim

For five years after moving in, residents will receive complimentary care services, including appliance disassembly and cleaning, performance inspections, and the replacement of consumable parts—all by professional managers. In particular, for built-in SKS appliances, complimentary care covers everything from minor refrigerator door inspections to induction cooktop surface cleaning and replacement, ensuring appliances are always in optimal condition.

Park Jaeseong, Executive Director and Head of Korea B2B Group at LG Electronics, stated, “Previously, our relationship with construction companies ended once the built-in appliances were installed, but now LG Electronics takes direct responsibility for residents’ home appliances for five years. Especially in homes outfitted with SKS, our top 1% veteran experts will oversee every stage—from delivery and installation to after-care and future removal—offering an unparalleled experience.”

On the 16th, the LG Electronics All-in-One Wash Combo Mini type displayed at the 'SKS' (Signature Kitchen Suite) showroom in Gangnam-gu, Seoul. It is scheduled to be released in the second half of this year. Photo by Jin-young Kim

The key to LG Electronics’ B2B subscription model is that residents do not pay a separate monthly subscription fee. Instead, the construction company prepays the entire appliance subscription cost when bidding for the project, strengthening its competitive edge. As a result, residents enjoy complimentary premium care for five years from the moment they move in. Once the subscription period ends, members will have the option to add further subscriptions to their accounts.

Park highlighted, “For customers, the appliance subscription product is great because they receive continuous care services for five years. From a business perspective, it also stimulates recurring revenue as consumers spend that period using LG products and may choose to purchase consumables or additional devices. For construction companies, it serves as a compelling selling point, offering residents differentiated, high-end appliance benefits.”

Beyond premium in-home appliance subscriptions, LG Electronics is also accelerating the establishment of an integrated ‘AI Home’ ecosystem that seamlessly connects entire residential complexes. Recently, in collaboration with GS Engineering & Construction, the company began joint development of the next-generation AI home hub, ‘ThinQ ON.’ Once this system is firmly in place, residents will be able to control in-unit devices, summon elevators, reserve community facilities, and access other shared infrastructure with just their voice. In fact, the number of households utilizing LG Electronics’ apartment-specialized service, ‘Connect Our Complex,’ has already surpassed 300,000 nationwide, helping maximize residential convenience.

On the 16th, the kitchen space at the 'SKS' (Signature Kitchen Suite) showroom in Gangnam-gu, Seoul. SKS appliances are displayed alongside kitchen furniture from the Italian high-end brand Acrynia. Photo by Jin-Young Kim

The current B2B built-in appliance market is estimated to exceed 1 trillion won. While some observe that growth may be constrained due to Korea’s limited land area and restricted apartment supply, Park offered an optimistic outlook. Although the market has recently contracted because of a slump in the construction sector, he analyzes that, if government revitalization measures succeed and the pre-sale market revives from next year, the market size will expand much further.

Park said, “Ten years ago, reconstruction projects accounted for only 10 to 20 percent of construction company pre-sale volumes. Now, the proportion of reconstruction has reached 50 percent, surpassing self-developed projects. As older apartment complexes are demolished and new ones constantly go up in ongoing renewal projects, there will be sustained demand for the B2B built-in market.”

He also expressed confidence about competing with rivals for market leadership. Park asserted, “Field experience consistently proves the phrase, ‘for appliances, it’s LG.’ Our products and member preference surveys show our clear advantage. Building on the appliance subscription and care services we have refined in the B2C sector for years, we plan to stay ahead.”

On the 16th, LG Electronics' premium home appliances are built-in at the 'SKS' (Signature Kitchen Suite) showroom in Gangnam-gu, Seoul. Photo by Jinyoung Kim

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