Samsung and LG Electronics Aim to Capture Final Air Conditioner Demand with 'High Efficiency'

Popularity of Electricity Cost-Saving Products
Product Lineup Composed of Energy Efficiency Grades 1-2
Sales of High-Efficiency Appliances Also Increase

Samsung Electronics and LG Electronics are making every effort to capture the last-minute air conditioner demand. Although the heatwave continues after the rainy season, they are prominently promoting 'low-power high-efficiency air conditioners' to ease the burden on consumers facing steadily rising electricity bills since last year. The competition between the two companies to increase air conditioner sales, which determine the annual home appliance business performance, is intense.

Electricity rates have risen sharply over the past year. The government raised household electricity rates by 13.1 KRW per kWh in January and increased them by another 8 KRW per kWh in May. Assuming a monthly electricity usage of 332 kWh for a family of four, electricity bills have increased by about 3,000 KRW compared to the beginning of this year.

As the 'electricity bill bomb' becomes a reality, interest in high-efficiency air conditioners has increased, especially among consumers trying to save every penny. Samsung Electronics and LG Electronics, the two giants of the domestic home appliance market, are striving to secure a competitive edge in summer appliances by emphasizing energy efficiency.

2023 Samsung Electronics Bespoke Wind-Free Air Conditioner Gallery.
[Photo by Samsung Electronics]

First, Samsung Electronics, aiming to sell 1 to 1.25 million air conditioners this year, has organized its air conditioner lineup around products with energy consumption efficiency ratings of 1 to 2. The Wind-Free system air conditioners and the window-type air conditioner 'Wind-Free Air Conditioner Window Fit' all belong to the energy consumption efficiency grade 1 category.

In addition, they launched an 'Energy Saving' model that is about 10% more energy-efficient than the grade 1 standard. This model features a heat exchanger with double the heat exchange surface area for faster heat exchange, and the outdoor unit has a larger fan size combined with a high-efficiency fan motor to reduce heat generation and resistance.

An LG Electronics employee is producing the Whisen Tower II on the air conditioner production line in Changwon, Gyeongnam.
[Photo by LG Electronics]

LG Electronics is targeting the market with a full lineup, from premium to entry-level, featuring the 'Whisen Tower Air Conditioner' equipped with energy consumption efficiency grades 1 to 2, as well as integrated air conditioners such as portable and window types.

The new 'Smart Care' function automatically manages cooling, purification, dehumidification, and power saving to reduce energy consumption. The 'Away Power Saving' function, applied to the top-tier models, uses a radar sensor to detect human movement and presence, activating power-saving mode. This mode can reduce electricity usage by up to 72% compared to the maximum cooling mode, Ice Cool Power.

The use of eco-friendly refrigerants is also increasing. Samsung Electronics expanded the use of the R32 refrigerant, which emits relatively less carbon, to this year's Wind-Free Air Conditioner Gallery, Classic, Slim, and wall-mounted models. LG Electronics also applied the R32 refrigerant to all new Whisen Stand Air Conditioner models this year.

Sales of high-efficiency appliances are on the rise. Samsung Electronics announced that in the first half of the year, one out of every two TVs, refrigerators, kimchi refrigerators, washing machines, air conditioners, and air purifiers sold by the company were 'energy-saving appliances.' The proportion of energy consumption efficiency grade 1 models among sold products also exceeded one-third. LG Electronics reported that sales of the energy consumption efficiency grade 1 window-type air conditioner 'Whisen Objet Collection Edge' in the first half of this year increased by more than 40% compared to the same period last year.