Hanssem and Hyundai Livart: Performance Gap Expected to Widen in Q2

Hanssem Expected to Recover Sales Above 400 Billion Won
Hyundai Livart Faces B2B Strain Amid Construction Slump
Diverging Market Trends Lead to Contrasting Strategies for Both Companies

The performance gap between the “Big 2” in the furniture industry, Hanssem and Hyundai Livart, is expected to widen in the second quarter of this year. While the recovery in housing transactions has led to improved remodeling demand, the continued downturn in the construction sector means that, unlike Hanssem, which has a high proportion of B2C (business-to-consumer) sales, Hyundai Livart, which is centered on B2B (business-to-business) transactions, is predicted to post somewhat disappointing results.

According to the consensus (average securities forecasts) compiled by financial information provider FnGuide on July 28, Hanssem’s consolidated sales for the second quarter of this year are estimated at 435.2 billion won, with operating profit expected to reach 12.2 billion won. This represents a 9.0% increase in sales and a 20.8% increase in operating profit compared to the previous quarter. After falling to 399.4 billion won in the first quarter of this year, Hanssem’s quarterly sales are projected to climb back above 400 billion won. In terms of operating profit, this marks a significant improvement in profitability compared to 2.3 billion won during the same period last year.

In contrast, Hyundai Livart’s second quarter sales are estimated at 358.2 billion won, with operating profit expected to come in at just 3.7 billion won. While this is a modest improvement from the previous quarter, compared to the same period last year, sales are expected to drop by 12.6%, and operating profit by 27.5%.

The divergent trends in the housing sales market and the construction sector are cited as the key factors behind the contrasting performances of the two companies. According to the Ministry of Land, Infrastructure and Transport, the nationwide number of housing sales transactions from January to May this year was 327,455, an increase of 15.1% from the same period last year (284,403 transactions). By contrast, housing construction permits during the same period amounted to 98,694 units, a decrease of 10.6% from the same period last year (110,438 units). This means that while the B2C market, which is influenced by demand for moving and remodeling, benefited from relatively favorable conditions, the B2B market, where housing construction permits serve as a leading indicator for built-in furniture sales, has contracted.

Eun-sang Lee, analyst at NH Investment & Securities, stated, “Hanssem's B2C revenue is being driven by an increase in actual apartment transactions. In 2026, sales in B2C segments such as Rehaus (re-house) and home furnishing are expected to reach 1 trillion won, up 16% from the previous year, leading the company’s overall revenue growth.”

This trend was also evident in the first quarter’s results. Hanssem’s Rehaus sales reached 94 billion won, up 7.8% from a year earlier. Operating income also swung from a 4.2 billion won loss to a 400 million won profit over the same period. This improvement is attributed to targeting partial remodeling demand by revamping its kitchen product lines such as ‘Kitchen Bach’ and ‘Euro Kitchen’, and promoting the 'EasyBath5' bathroom solution, which can be installed in just two days. While Hanssem was able to offset some of its sluggish built-in sales through Rehaus growth, Hyundai Livart was unable to avoid an overall decline in sales due to weakness in both its B2B and B2C businesses.

Currently, both companies are seeking different strategies to cope with the prolonged industry slowdown. A Hanssem representative said, “Rather than relying solely on a market recovery, we are strengthening our competitiveness by focusing on product categories with clear customer demand, such as partial remodeling packages, storage furniture, and products for newlyweds.”

Hyundai Livart, on the other hand, is banking on 'B2B diversification' and 'premium positioning.' A Hyundai Livart representative stated, “Based on our mass production infrastructure for built-in furniture, we will expand our product range and cultivate premium product lines with design competitiveness, enhancing our brand image.”

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