Despite Remodeling Market Recovery, Hyundai Livart Jipterior Struggles... Sweating for a Second-Half Rebound

Jipterior Sales Down 20%, B2C Revenue Drops 16% in H1
Hanssem and LX Hausys Turn Remodeling Demand into Performance Gains
Low Brand Awareness and Distribution Network Challenges; Rebound Sought in Second Half

Hyundai Livart's total interior brand, "Livart Jipterior," has struggled to gain momentum. This contrasts with competitors, who have turned the recovery in housing transactions during the first half of this year into improved performance by tapping into remodeling and renovation demand. Hyundai Livart plans to pursue a rebound in the second half by reorganizing its distribution network around high-performing dealerships and expanding its lineup of mid- to high-priced new products.

According to the related industry on October 6, Hyundai Livart's B2C (business-to-consumer) revenue for the first half of this year was KRW 178 billion, down 15.9% from KRW 211.6 billion in the same period last year. During the same period, the company recorded an operating loss of KRW 7.9 billion, narrowing the deficit somewhat. The sluggishness of the Jipterior business was particularly pronounced. Revenue from Jipterior in the first half fell 20.3% year-on-year. This decline was even steeper than the 11% decrease in sales of home furniture such as beds and sofas.

The core issue is that the poor performance of Jipterior cannot simply be blamed on overall market conditions. According to the Ministry of Land, Infrastructure and Transport, the number of home sales transactions in the first half of this year was 396,274, an increase of 10.6% over the same period last year. As more homes are sold, demand for moving and remodeling typically rises as well, making this year's market conditions somewhat more favorable than last year.

It is even more painful for Hyundai Livart that competitors have converted this recovering demand into improved financial results. Hanssem's Rehaus revenue for the first half of this year was KRW 211.3 billion, a 7.8% increase from KRW 195.9 billion in the same period last year. Operating profit reached KRW 9.7 billion, shifting from a loss in the same period last year to a profit. Hanssem's total operating profit also increased from KRW 8.7 billion to KRW 21.4 billion during the same period, contributing to an overall recovery in profitability.

LX Hausys also posted a clear improvement in results. In the first half of this year, sales in its building materials division reached KRW 1.2071 trillion, an 11.2% increase from KRW 1.0852 trillion a year earlier. Operating profit was KRW 63.6 billion, marking a turnaround from an operating loss of KRW 4.2 billion in the same period last year. Notably, in the second quarter, the building materials division reported sales of KRW 655.7 billion, up 19.9% year-on-year, and operating profit jumped from KRW 1 billion to KRW 36.7 billion.

A view of Hyundai Livart's 'Livart Jipterio' booth at the '2026 Korea Build Week' held last August at COEX in Gangnam-gu, Seoul. Hyundai Livart

Hyundai Livart analyzes that low brand awareness is behind Jipterior's poor performance. An official from Hyundai Livart explained, "Jipterior's brand recognition is relatively lower than other total interior companies such as Hanssem and LX Hausys, resulting in insufficient sales." Hanssem has ramped up its Rehaus business since 2016 and now operates more than 600 dealerships. By contrast, Hyundai Livart only launched the Jipterior brand in 2022, meaning it still needs more time to build sufficient brand recognition and an effective distribution network in the total interior market.

Aftereffects from the initial rapid expansion of its distribution network are also proving to be a challenge. Since launching Jipterior, Hyundai Livart aggressively increased its number of stores and dealerships, but this fast expansion left it relatively lacking in nurturing high-performing dealerships. Therefore, starting in the second half, the company aims to strengthen its business fundamentals by reorganizing its existing distribution network with a focus on quality dealerships, rather than pursuing sheer scale expansion.

The company is also stepping up efforts to enhance product competitiveness. Hyundai Livart plans to expand its lineup of new products, centered on mid- to high-priced items, by the first quarter of next year. Additionally, it will expand its XR (extended reality) consultation service, which enables customers to preview post-renovation interiors in virtual space. This service, which is now only available at the Livart Total Gangnam and Livart Total The Hyundai Seoul locations, will be rolled out to more metropolitan commercial zones and large directly-owned stores in the future.

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