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Foreign brands battle for a place in Korea’s home appliance market

Published: 29 Oct. 2025, 07:00

Xiaomi International Business Department East Asia Region General Manager Andrew Li, second from right, and Xiaomi Korea General Manager Jony Wu, second from left, pose together with the models during the opening of the brand's first Korean official retail store at IFC Mall in Yeouido, Seoul, on June 25. [NEWS1]

In the global home appliance industry, Korea is often called a "graveyard for foreign brands."

Even world-leading companies struggle to survive in a country dominated by domestic giants Samsung Electronics and LG Electronics. With a population of just over 50 million, the Korean market is small but fiercely competitive — a classic red ocean. Still, global brands like Britain’s Dyson, Germany’s Miele, America’s Shark and China’s Xiaomi continue to challenge it.

Chinese tech and appliance maker Xiaomi has been the most aggressive recently. On Wednesday, the company opened its first direct-run service center in Seoul’s Yongsan District. The 230-square-meter facility handles repairs for both small and large appliances, including robot vacuums, air purifiers and dehumidifiers.

Xiaomi previously operated a retail space indirectly through a distributor at Yongsan’s I’Park Mall from late 2021 to March 2024. After establishing its Korean subsidiary this year, it has moved to expand directly. In June, Xiaomi opened its first official store at Seoul’s IFC Mall in Yeouido, followed by two more branches in Gwangjin and Gangseo, both in Seoul. The company plans to open its fourth and fifth stores soon in Gyeonggi’s Bucheon and Jamsil in southern Seoul. The new service center aims to strengthen its after-sales network — long seen as a weakness among Korean consumers.

Germany’s premium brand Miele marked its 20th anniversary in Korea on Wednesday, with co-CEO Markus Miele visiting Seoul. Founded in 2005, Miele Korea has focused on built-in premium appliances. U.S. home appliance company Shark, which entered the Korean market in 2023, appointed actor Gong Yoo as its first Korean brand ambassador in August to boost awareness.

Marcus Miele, left, the co-chairman of Miele, a German premium home appliance company, and Miele Korea Managing Director Choi Moon-sup, speak during a press conference marking the 20th anniversary of Miele Korea’s establishment at the Miele Experience Center in Gangnam, Seoul, on Oct. 22. [YONHAP]

Despite the high barriers, foreign firms see Korea as a proving ground for technology and design.

“Just competing with Samsung and LG is a major endorsement in the global market,” said an industry insider.

Brandon Lee, Asia-Pacific marketing head at Chinese appliance maker Mova, called Korea the most ideal market to grow together because consumers have a deep understanding of technology.

Miele also said during his recent visit that Korean consumers’ high standards and sensitivity to trends also drive innovation, adding that Korean customers have sharp insight and expect exceptional quality.

He noted that the company’s “Asian Basket” dishwasher rack — designed to better hold concave plates — was developed in response to Korean customer feedback.

As demand grows for premium products and new technology, global brands are finding opportunities in niches that local players have overlooked. Chinese companies Roborock and Ecovacs, for example, now command nearly 70 percent of Korea’s robot vacuum cleaner market.

That dominance is putting pressure on domestic manufacturers. A report last September by the Korea Institute for Industrial Economics & Trade found that despite Korea’s global leadership in appliances, domestic production and exports fell by an average of 0.4 percent and 1.6 percent annually from 2019 to 2023.

The study cited intensified global competition and insufficient innovation capacity in next-generation appliances. It urged Korean firms to invest in artificial intelligence and smart home ecosystems — developing high-value services, home robots and personalized devices — to stay ahead in the rapidly changing global market.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY YI WOO-LIM [[email protected]]