Samsung and LG shift heat pump production to South Korea amid policy changes
- brg_news_room
- Mar 31
- 1 min read
South Korea: Samsung Electronics and LG Electronics are planning to relocate their heat pump production lines from China to South Korea, in line with government policies supporting domestically manufactured products. Samsung is expected to move production from Suzhou to its Gwangju facility, while LG is considering shifting operations from Tianjin to Changwon, with both companies aiming to begin domestic production within the year. The move comes as the government introduces measures to promote heat pump adoption, alongside growing concerns over the liquefied natural gas supply chain following geopolitical developments in the Middle East.
The South Korean government plans to invest KRW 14.4 billion (approximately USD 9.6 million) in 2026 to support heating electrification, with additional allocations of KRW 5.6 billion (approximately USD 3.7 million) for residential projects and KRW 1.3 billion (approximately USD 0.9 million) for social welfare facilities. Policy measures include recognising air-source heat as a renewable energy source and reforms to electricity pricing. Demand for heat pumps in South Korea has been limited due to reliance on gas boilers and higher installation and electricity costs, though a national distribution initiative is scheduled to begin this year.
Source: Business Korea
