Recently, the furniture industry has been raising product prices one after another. This is because the prolonged period of high oil prices and a strong dollar has piled up the burden of raw and subsidiary material costs and logistics costs.

According to the furniture industry on the 29th, Shinsegae Casa (Casamia) recently raised prices on some products by an average of 5.9%. Sealy increased prices across all products by an average of 8%, Tempur raised bed frame prices by about 9%, and Fursys will also raise prices across all products by an average of 8% starting in July. Simmons likewise raised prices across all products, including mattresses, frames, and bedding, by an average of 10% recently for the first time in about two years.

The furniture industry said it has no choice but to raise prices as raw material prices have risen and the won has weakened against the U.S. dollar. In particular, lumber prices rose about 3% to 10% from the previous year's average. Logistics costs are also a major burden. Although international oil prices have calmed somewhat as the war between the United States and Iran showed signs of easing, logistics costs have risen by more than 20% since the war broke out in March.

An industry official said, "In the past few years, exchange rates and raw material prices have risen by nearly 10% to 20%, significantly increasing the burden on companies that import raw materials from overseas." Another industry official said, "If the main issue at first was securing raw materials, the exchange rate has now piled on, further increasing the burden."

The real estate downturn has also negatively affected the furniture industry. Furniture is a representative durable good directly influenced by new move-ins, relocations, and wedding purchases. Recently, a decline in real estate transactions, a reduction in new move-in volumes, and weaker consumption have combined to delay a demand recovery.

According to the "Domestic Population Migration Statistics for May 2026" that the Ministry of Data and Statistics (MODS) released on the 24th, the number of movers last month was 466,000, down 7,000 (1.5%) from the same month a year earlier. This is the lowest May figure since May 1974 (415,000). It is seen as the result of reduced moving demand due to population decline and aging, compounded by a slowdown in the dwellings market such as fewer apartment completions.

In fact, major furniture companies are feeling the impact of the construction slump. In the first quarter of this year, Hanssem posted consolidation-based revenue of 399.4 billion won, down 9.9% from a year earlier, while Hyundai LIVART recorded revenue of 355.9 billion won in the same period, down 18.7%. With a simultaneous decline in B2B (business-to-business transaction) volumes for construction companies and weaker consumption, firms are focusing on cutting expense and defending profitability. Small and midsize furniture makers have also raised prices one after another due to cost pressures.

Within the industry, there are concerns about the timing of the price hikes. Expectations had grown that the wedding market would revive as the number of marriages showed signs of recovery, but simultaneous price increases for key wedding items such as beds and sofas could raise the burden on engaged couples. Because beds and furniture are high-priced durable goods with high per-unit purchase costs, the price hikes could dampen consumer sentiment and negatively affect the recovery of the wedding and move-in markets, according to one analysis.

A furniture industry official said, "Beds are often purchased when moving or getting married," adding, "Although the number of marriages is creeping up, if moving demand declines, purchases will fall as well, so it is inevitable that the sector will be heavily affected by the real estate market."
  
Source: chosun.com