Samsung Electronics targets next-generation air conditioning market with all-in-one heat pump launch this year

Shin Moon-sun, a senior vice president at Samsung Electronics' DA Division, explains the company's heat pump solution. [Samsung Electronics]

"Twenty years ago, an air conditioner cost as much as 4 million won ($2,830) — it was a luxury item. Heat pumps are in the same position today. The market is still in its infancy and needs to grow."

Shin Moon-sun, a senior vice president overseeing air solution development at Samsung Electronics' DA Division, made the remarks Monday at a briefing on the company's "Korean-style all-in-one EHS (Eco Heating System) heat pump for combined cooling and heating," held in Jeju, and outlined plans to launch a new product to expand the heat pump market.

Samsung Electronics, which has been supplying residential EHS heat pump boilers in Jeju to build a foothold in the market, has set up a "heat pump field test lab" at a standalone home in Donam-dong, Jeju, targeting a domestic launch this year of its "EHS all-in-one" system — a heat pump capable of both cooling and heating.

A heat pump works by exploiting the heat absorbed and released when a refrigerant changes between liquid and gas states. Until now, products available in South Korea were limited to boiler units that absorb heat from outside air and transfer it to water for heating. The new product adds cooling to that capability.

The "EHS all-in-one" unit under testing uses a single outdoor unit to provide both air-to-air (A2A) cooling and air-to-water (A2W) functions — including underfloor heating and hot water supply. Samsung launched the all-in-one model in Europe in March, where heat pumps are already widespread, and said the European rollout helped it refine the product.

"Europe has many standalone homes, and outdoor unit installation rules are strict," Shin said. "There are regulations requiring that outdoor unit operating noise not exceed 35 decibels, so the all-in-one product required considerably more work on sound insulation and absorption than a standard air conditioner."

Heat pumps have gained momentum in South Korea thanks to a government initiative to electrify residential heating. To achieve carbon neutrality by 2050, the government has set a target of deploying 3.5 million heat pump units by 2035.

With government subsidies, a heat pump boiler that currently costs around 14 million won can be installed for roughly 4 million won. Analysts say the installation cost can be recouped within two to three years compared with conventional gas or oil boilers.

Jeju Island, which has no large industrial complexes and therefore relatively stable power consumption, has become a domestic test bed for heat pumps. When surplus electricity is generated, heat pumps are operated through a virtual power plant (VPP) to improve operational efficiency. The island's large share of households using LPG or oil boilers for heating has also created demand from customers looking to switch.

Yang Chang-hui, 74, who lives in the test lab home, said the experience has been a marked improvement over the oil boiler he used before. "With the old oil boiler, I had to manage the fuel myself," he said. "With the all-in-one heat pump, I just set the indoor temperature through SmartThings and the air conditioning takes care of itself — it's very convenient."

Yang Chang-hui, 74, operates the EHS all-in-one heat pump via SmartThings at the field test lab home. [Samsung Electronics]

The first customer in Jeju to install an EHS heat pump boiler — who did so in June, ahead of the test lab — also expressed satisfaction compared with using an LPG boiler previously.

"LPG boilers are more expensive than the city gas boilers used on the mainland," said Kim Eun-ae, 52. "To stay warm in a home of about 100 square meters, I was spending close to 1 million won a month. When I heard a heat pump running on electricity was coming out, I applied right away."

However, because heat pumps draw on outdoor air for thermal energy, they require space for a water tank to store heat. Both the test lab and the first customer's home have large water tanks installed. This is widely cited as an obstacle to broader heat pump adoption in South Korea, where a high proportion of the population lives in apartment buildings.

Samsung Electronics is working with affiliate Samsung C&T to research ways to commercialize heat pumps in apartments. "Depending on the type of housing, it may be possible to use an alternating system with a smaller capacity than a thermal storage tank," Shin said. "In Europe, there are already cases where a water tank has been fitted into the kitchen in a kitchen-fit configuration."

Overcoming consumer concerns about electrifying home heating is another key challenge. Many worry that South Korea's progressive electricity billing system could result in excessive charges.

"In South Korea, the progressive billing system causes rates to rise sharply once consumption exceeds a certain threshold," Shin said. "On Jeju Island, we worked with the Ministry of Climate, Energy and Environment to install a separate meter for the heat pump so that a standard tariff can be applied." He added that ongoing coordination with relevant government ministries remains necessary.

jeongwan@heraldcorp.com