[Exclusive] ‘Woorijip Service’ Integrated into Zigbang Smart Home Division

Digitalization of Residential Spaces 'Zigbang Home' Workforce Reallocation
Focusing Capabilities on Real Estate Brokerage and Home IoT Business

[Asia Economy Reporter Kwangho Lee] Real estate brokerage platform 'Zigbang' is strengthening its Home IoT business through organizational restructuring. Attention is focused on whether it will establish itself as a platform that handles all matters related to homes, starting from real estate brokerage.

According to industry sources on the 3rd, Zigbang has merged the 'Our Home Service,' also known as the 'Zigbang Home (internal name)' division, into the Smart Home division. This move is to focus more on the smart home business. Our Home Service is a resident-exclusive service derived from real estate, including monthly rent, utility bill payments, and resident voting. Since it overlaps with the smart home business, the two were combined into one department.

Recently, Zigbang revealed a new vision by changing its corporate identity (CI) and logo. The core business models emphasized by Zigbang are twofold: the 'real estate brokerage platform' model and the 'smart home' model. In particular, it is putting all its efforts into the smart home business.

In July, Zigbang acquired Samsung SDS's Home IoT division, initiating investments in hardware (door locks). This move was evaluated as laying the foundation for entering the domestic and international smart home markets.

Zigbang has steadily expanded its scope. It has focused on business diversification through aggressive mergers and acquisitions (M&A). Starting with 'Hogangnono' in 2018, which provides apartment transaction prices and listings, it acquired the share house platform 'Uju' and the commercial real estate information platform operator 'Sugarhill,' which runs 'Nemo,' in 2019. In 2020, it incorporated bathroom and kitchen cleaning service provider 'Hotelive,' and real estate consulting and brokerage firms 'Ontactplus' and 'Winners Partner.' Last year, it also acquired the multi-family housing management platform 'Mobil.'

Additionally, it is targeting the non-face-to-face market by launching the metaverse office service 'Soma.' Soma is a new brand that upgraded 'Metapolis,' the first domestically developed virtual office, to a global version last year.

However, industry analysts suggest that the organizational restructuring was carried out as a choice and focus measure because Our Home Service has struggled to grow and remained stagnant.

Zigbang turned a profit in 2018 but has been running at a loss since. In 2021, Zigbang's operating loss was 8.2 billion KRW, and net loss was 13 billion KRW. Although last year's revenue increased to 55.8 billion KRW compared to the previous year, it still has not escaped the deficit trap.