[Report] Air Conditioners Flying Off the Shelves from the World's No.1 Heater Company

Paseco, No.1 Domestic Market Share for 'Window Air Conditioners'
Self-Installation Possible in 5 Minutes Without Tools
"Busy Preparing for Super El Nino... Targeting Overseas Markets"

Pasero employees are working at a window air conditioner manufacturing factory.

On the 29th of last month, we visited the Paseco factory located in Danwon-gu, Ansan-si, Gyeonggi Province. This site, covering an area of 27,007㎡, houses Factory 1, which is responsible for winter products, and Factory 2, which handles summer products. Employees at Factory 1 were working hard producing petroleum heaters, which hold the world's number one market share. Meanwhile, Factory 2 was busy manufacturing and inspecting window-type air conditioners, which lead the domestic market. Kim Sang-woo, head of Paseco's Retail Business Division, said, "Due to the early arrival of the heatwave and monsoon season, air conditioner demand surged last month," adding, "We even deployed additional personnel from the heater production line."

Paseco, a comprehensive home appliance manufacturer, was established in 1974. Starting with making wicks for heaters, it expanded into the petroleum heater business and gained recognition on the global stage. Paseco's wick-type heaters are exported to the U.S., Europe, and the Middle East, capturing 50% of the global market share. They are also highly popular domestically, causing a sell-out craze for camping heaters. Built-in appliances such as dishwashers, gas ranges, and garment care devices are also key product lines.

Paseco first entered the window-type air conditioner market in 2019. These air conditioners can be easily self-installed by fitting them into window frames without the need to drill walls or install outdoor units separately. As 'room-by-room cooling' becomes common and the number of single-person households and rental households increases, the popularity of window-type air conditioners is growing. Since Paseco's market entry, companies like Shinil Electronics, Kiturami, and Winia have launched products, and recently Samsung Electronics and LG Electronics have also joined the market.

The strength of Paseco's window-type air conditioners lies in installation convenience. They apply an 'Easy Lock System' that allows anyone to securely fix the unit by hand without tools like screwdrivers, enabling assembly within five minutes. Lee Seong-hwan, head of Paseco's development team, said, "When we improve installation convenience and file patents, competitors follow by adding similar features," adding, "Even when watching installation comparison videos by famous YouTubers, nothing surpasses our product."

A Paseco employee is testing the noise changes of a window air conditioner according to temperature in the 'Twin Silent Room' installed at Paseco's 2nd factory.

A Paseco employee is inspecting a window air conditioner.

Since 1994, Paseco has operated a corporate research institute, investing 2% of its total annual sales in research and development (R&D). In the 'Twin Anechoic Chamber' inside Paseco's Factory 2, research to reduce noise from window-type air conditioners is underway. A large room designed like a soundproof booth has a partition wall installed in the center, where a window-type air conditioner is mounted to simulate a laboratory. They measure how noise changes according to indoor and outdoor temperature and humidity. Lee explained, "When the external temperature changes, the internal temperature changes, which alters the refrigerant temperature and consequently the operating noise," adding, "We are also conducting related tests assuming a super El Ni?o event this year."

On the production line, employees focus on assembling air conditioners using machines and equipment that assist with each manufacturing process. They produce 1,200 window-type air conditioners daily, with peaks up to 2,000 units. In a closed space located in the latter part of the production line, two employees listen closely to the products to perform final checks for noise and defects. Despite digital equipment checking for defects in earlier stages, why is this manual inspection necessary? Kim, the business division head, said, "There have been cases where human ears detected noises that machines missed, identifying the cause of defects," introducing the two employees as veterans who have inspected 350,000 air conditioners by ear over four years.

Paseco's sales and operating profit grew from 149.4 billion KRW and 5.3 billion KRW in 2018 to 200.5 billion KRW and 15.8 billion KRW last year. The share of window-type air conditioners in total sales has risen to 30%. Exports to Asian regions such as Vietnam, Singapore, and Taiwan are also active. Following its global leadership in heaters, Paseco plans to gain recognition overseas with its window-type air conditioners as well. Kim stated, "We plan to continuously develop technology to drastically reduce noise," adding, "We will also improve installation convenience to accommodate unique window types common in Europe and other regions."