[Exclusive] Chinese Robot Vacuum Makers Sweep Up 1 Trillion Won in Korea, Yet Employ Only 5 Locally...Minimal Investment in Korean Market

Roborock, Dreame, and Ecovacs:
Local Subsidiaries Employ Only a Few to a Few Dozen Staff
Surpass Combined Market Share of Samsung and LG
But Minimize Investment in Local Hiring and Services
Some Companies Dispatch Chinese Staff to Distributor

There are growing concerns that Chinese robot vacuum companies, despite capturing over half of the South Korean market share, remain passive when it comes to local hiring and investment. While their sales have surged, the number of employees at their Korean subsidiaries is limited to just a handful-ranging from five or six to, at most, a few dozen. Most sales and after-sales services are outsourced to distributors.

According to an Asia Economy investigation on September 24, Roborock Korea (established in 2020) has about 5 to 6 employees, Ecovacs Korea (2022) has 3 to 5 employees, Dreame Korea (2022) has 10 employees, and TCL Korea (2023) has between 20 and 30 employees. This highlights a clear imbalance between their market dominance and organizational size. Except for TCL, most of these companies rely on distributor contracts for both sales and after-sales services.

Roborock robot vacuum cleaner photo. Roborock.

However, their market share tells a different story. Roborock commands a market share in the mid-to-high 40% range in the domestic robot vacuum market, far surpassing the combined 20-30% share held by Samsung Electronics and LG Electronics. When adding Dreame (12.8%) and Ecovacs (less than 10%), Chinese companies collectively control over half of the market. Despite this rapid expansion in market dominance, their local employment and investment remain at a minimal level, creating a stark disparity. As a result, their contribution to the local industrial ecosystem is low compared to their sales growth, and questions are being raised about their prospects for stable market integration.

Typically, global home appliance companies establish a revenue base through distributor-led sales and distribution in the early stages of overseas expansion. Once they reach a certain scale, they set up local subsidiaries and expand their organizations to directly manage marketing, service centers, and logistics. Dyson, for example, has maintained a workforce of around 300 employees since establishing its Korean subsidiary in 2017. Philips Korea also employs about 300 people, while Panasonic Korea, after entering the market in 2000, has secured about 50 employees and established a stable operational system.

In contrast, Chinese robot vacuum companies remain passive in expanding employment and service infrastructure, despite rapid sales growth. Roborock posted sales of 241.4 billion won in South Korea last year, and the domestic robot vacuum market, which was worth 850 billion won in 2024, is expected to surpass 1 trillion won this year. Dreame set a target of 200% growth after achieving a 12.8% market share earlier this year. TCL Korea, which enjoys a high global market share, recorded sales of 25.7 billion won at the end of last year, but its local organization remains at a minimum size.

Due to the small size of their Korean branches, these companies are highly dependent on distributors. Currently, among the four companies, only TCL Korea maintains a direct sales system. Roborock outsources sales and after-sales service to Thinkware Mobile and Hanyi Corporation, Dreame relies on Kolon Global, and Ecovacs uses Thebul Information Technology Co., Ltd. as its distributor. However, this structure has raised concerns about potential declines in domestic service quality. A local industry insider commented, "If inventory or product issues arise, there is a risk that responsibility will be shifted to the distributor. From the consumer's perspective, having to contact different companies for services depending on the product can make it difficult to receive stable service."

Some companies have recently started deploying Chinese personnel directly to distributors and other sales channels. Industry experts warn that if Chinese companies take direct control not only of sales and after-sales service but also the distribution network, the position of domestic distributors and partner companies could be significantly weakened. They also point out that if Chinese personnel are brought in when there is almost no local employment, the ripple effects could be even greater. A source familiar with the industry stated, "In fact, some distributors already have Chinese staff directly assigned. If Chinese companies take over the distribution channels, a large-scale Chinese distribution network could be established in Korea. Ultimately, this would narrow the space for domestic companies and negatively impact the overall health of the industry ecosystem."

A representative of one Chinese company explained, "The reason for the small number of Korean employees relative to sales is that we do not sell directly, but conduct business through official partners. Since the distributors are large, well-established companies in Korea, we believe that maintaining this approach is more efficient." He added, "As far as I know, there are currently no plans to expand the workforce."

Despite these circumstances, the global market share of Chinese companies is expected to continue rising. According to the 'Q2 2025 Worldwide Quarterly Smart Home Device Tracker' released by global market research firm IDC, global robot vacuum shipments in the second quarter of this year reached 6.17 million units, up 20.5% from the same period last year. Roborock has reportedly secured over 50% market share in major markets such as South Korea, Germany, and Turkey. Market research firm Grand View Research projects that the domestic robot vacuum market, which was worth 440 billion won last year, will grow at an average annual rate of over 24% through 2030.