
Chinese firms have accelerated their foray into Korea, particularly in the consumer electronics sector, leveraging their products' relatively low price points and localization strategies.
From robot vacuums to smartphones and TVs, these firms are aggressively establishing local subsidiaries and opening dedicated stores, signaling a robust push into the market.
Chinese smartphone maker Xiaomi on Wednesday hosted its first press briefing after it established its local subsidiary, Xiaomi Technology Korea, earlier this month. During the event, the company unveiled a range of new smart devices, including smartphones, wearable devices, TVs, robot vacuum cleaners and portable chargers at almost half the prices of their Korean alternatives.
The premium Xiaomi 14T smartphone is priced between 599,800 won and 649,800 won ($411-$445), while the Redmi Note is available at prices ranging from 399,300 won to 499,400 won, depending on the amount of data storage.
“We’re excited to introduce a variety of new products that embody our commitment to high quality, honest price and guaranteed service,” said Jony Wu, general manager at Xiaomi Korea, in a press briefing at a Seoul hotel, earlier in the day.
“Through our Korean subsidiary, we aim to establish ourselves as a localized company by listening to the voices of Korean users, supporting our customers and addressing their needs step by step."
According to market research firm Canalys, as of the third quarter of 2024, Xiaomi ranked third globally in smartphone market share with 14 percent, trailing Samsung (18 percent) and Apple (18 percent).
Market watchers forecast that Xiaomi’s immediate impact on the domestic market may be limited, but they predict intensified competition in the mid- to low-price segments shortly.
“Chinese products have evolved into more than low-cost options. They now offer competitive technology and quality, making their market presence more sustainable,” said Ahn Hye-young, a researcher at Hana Institute of Finance.

Another notable example is Roborock, which makes robot cleaners and established its Korean unit in 2020, becoming a rare Chinese success story on the home turf of Samsung Electronics and LG Electronics.
Roborock, best known for its mopping cleaners, has maintained its top position in the nation's burgeoning robot cleaner market over the past four years, prompting Korean rivals to come up with their own versions.
Chinese brands have been long thought of as cheaper, but Roborock's flagship machine, Roborock S8 MaxV Ultra, is priced at 1.84 million won ($1,350), competing head-on with premium Korean models.
Roborock makes up almost 80 percent of premium robot vacuum cleaners with price tags of over 1.5 million won. Last year, the company posted an estimated 200 billion won in sales.
Chinese TV brands are also making inroads into the Korean electronics market. TCL established its Korean subsidiary in November 2023, while Hisense has started selling TVs through e-commerce giant Coupang, offering after-sales services and gradually expanding its market share.
In terms of cumulative TV sales as of the third quarter of last year, Hisense ranked second in the world with 13.6 percent. TCL is ranked third with 11.4 percent. Samsung maintained its lead at 18.1 percent, but LG slid to fourth place with 11.3 percent.
Faced with a domestic economic slowdown and the US-China trade war, Chinese firms are increasingly turning to markets closer to home, like Korea. Although their presence poses no immediate threat to Samsung and LG, experts warn of inevitable competition in the mid- to low-price product segments if Chinese companies launch aggressive marketing campaigns.
“Unlike semiconductors, where technology gaps remain significant, consumer electronics rely on developing products aligned with trends. Chinese firms excel at rapidly securing market footholds,” said Shim Woo-jung, a senior researcher at the Korea Institute for Industrial Economics and Trade.
“Their lower overhead costs and strong domestic market base pose challenges to Korean companies, which must focus on long-term competitiveness through strategies like subscription services to enhance profitability.”
By Jie Ye-eun (yeeun@heraldcorp.com)