Korea's building materials industry is seeking a way forward with "quality" and "premium" strategies amid a double squeeze from a construction slump and a flood of low-priced Chinese products. Judging that it is hard to endure with simple price competition, companies are moving to defend the market by promoting genuine product certification systems and high-insulation, high-performance products.
◇ "Chinese-made products are being mixed in"… KCC Glass responds with genuine product certification
According to the building materials industry on the 27th, KCC Glass on this day formally introduced the industry's first "genuine glass certification system." It verifies on-site whether the glass supplied to construction sites is actually a genuine KCC Glass product.
Under the system, when a certification request is received from a builder before construction begins, a preliminary certificate is issued, and after completion, a final certificate is provided following an on-site inspection. In particular, the on-site inspection analyzes glass composition using a portable XRF (X-ray fluorescence) analyzer. KCC Glass said its float glass has a unique compositional profile, allowing rapid identification of genuine products.
In actual construction sites, quality controversies over Chinese glass have been raised consistently. In 2024 at the Bangbae GranXi apartment complex in Seocho-gu, Seoul, it was revealed that thousands of panes of Chinese glass with forged KS marks had been installed. At the time, indications emerged that Chinese glass had been disguised as domestic genuine products and supplied, raising safety concerns among residents, and even sparking issues over tempered glass performance verification, which led to broader criticism of lax quality control in the construction industry.
The trend of increasing imports of Chinese building materials is also steep. According to Korea Customs Service trade statistics, last year imports of Chinese particleboard (PB) reached 142,195 tons, more than 12 times the previous year (11,157 tons).
According to statistics from the Trade Commission of the Ministry of Trade, Industry and Resources, imports of Chinese medium-density fiberboard (MDF) also totaled 75,600 cubic meters last year, more than double the previous year's 35,000 cubic meters. Industry watchers say Chinese products are about 10%–15% cheaper than domestic ones, accelerating the pace of market encroachment.
The situation is similar in the phenolic foam (PF) insulation and color-coated steel sheet markets. Last year, imports of Chinese PF insulation are estimated to have reached 13,140 tons. Some products were distributed without information on country of manufacture or manufacturer, and some color-coated steel sheets reportedly fell short of KS standard coating weights. Analysis suggests the domestic distribution share of Chinese color-coated steel sheets has recently expanded to around 40%.
◇ Focusing on high insulation and high performance instead of low-price competition
Domestic companies are restructuring their businesses around high value-added products instead of price competition. Overall demand has declined due to the construction slump, but demand for premium products with energy efficiency, eco-friendliness, and installation reliability has relatively held up.
LX Hausys is focusing on strengthening its lineup of high-insulation, high-airtightness windows and energy-saving products. In particular, it is expanding the share of high-performance windows with lower heat transfer coefficients while intensifying energy-efficiency-centered marketing.
Eagon Windows is likewise maintaining a strategy centered on high-performance products such as vacuum glass and high-airtightness windows. It is targeting the premium market by promoting products with enhanced insulation and airtightness compared with standard windows. In collaboration with builders, it is also strengthening strategies that emphasize energy-saving performance and installation reliability.
The insulation and interior materials sectors show a similar trend. Byucksan has begun reorganizing its product lineup around high-performance, high-efficiency insulation and is focusing on expanding supply in line with tighter energy-saving standards. Dongwha Enterprise is increasing the share of high-performance flooring and interior boards with eco-friendly certifications, and Hansol HomeDeco is also strengthening its premium interior materials lineup.
An industry official in building materials said, "Cases of low-priced Chinese products being mixed in as if they were domestically made have been repeated for a long time," and added, "Even if the price seems low for now, it is highly likely to lead to quality or safety issues in the end." The official went on, "The prolonged construction slump is increasing the burden on domestic companies, but ultimately, there is little alternative for survival other than differentiating through certification, quality, and high-performance products."