Samsung Electronics to supply 10,000 AI modular homes within three years

Directly across from the factory of Gonggan Jakupso, a timber modular housing specialist in Hwaseong, Gyeonggi Province, stands a two-story luxury single-family home spanning 330 square meters, or 100 pyeong, where 1 pyeong equals 3.3 square meters. It is the showroom for Samsung Electronics' Samsung AI Modular Home, marking the company's formal entry into the single-family modular housing market.

Samsung Electronics plans to introduce an "AI Home" built around AI appliances optimized for modular housing and its SmartThings platform, riding the growth of the single-family housing market. The company's goal is to supply a cumulative 10,000 modular homes equipped with Samsung Electronics appliances within three years. Its longer-term strategy is to expand into reinforced-concrete modular construction, multi-family housing and overseas markets.

"We are looking to expand in the domestic market, starting with AI home solutions for single-family homes," Lee Shin-young, head of the New Biz team at Samsung Electronics' DA Division, said Wednesday. "We are reviewing the business with a target of equipping 10,000 homes within three years."

Modular housing remains relatively unfamiliar in South Korea, though it has spread widely overseas — even into high-rise apartment construction. Domestically, modular homes are emerging as an alternative, particularly for single-family dwellings. Demand for detached houses is rising alongside higher incomes, but soaring construction costs and a shortage of skilled labor remain obstacles. Modular homes offer the advantage of shorter build times and lower costs.

"Because more than 80 percent of a modular home is manufactured in the factory and only assembly is required on site, construction time is cut by 50 percent compared with a conventional reinforced-concrete apartment," said Park Jeong-jin, chief executive of Gonggan Jakupso. He added that the domestic modular housing market is expected to supply 4,000 units this year and grow to 23,000 units by 2034.

Many people dream of owning a detached home — from those in their 50s and older seeking a comfortable retirement to couples in their 30s and 40s who want space to raise children freely — but several concerns hold them back. These include anxiety over break-ins, worries about fire and water leaks, and energy costs.

"If the door camera detects an intruder outside, SmartThings sends an alert that an emergency has occurred," Lee said, adding that the system can also dispatch a response team through a tie-up with S1, a security services company. Fire and water-leak issues are similarly handled: sensors detect the problem and SmartThings notifies the homeowner.

Samsung Electronics offers Basic, Standard and Premium tiers, allowing buyers to choose a home configuration that suits their lifestyle. Based on the most popular size sold by Gonggan Jakupso — units in the 20-pyeong range — the Basic model costs between 5 million won ($3,900) and 6 million won per 3.3 square meters in construction costs, while the Premium model runs 12 million won to 15 million won per 3.3 square meters. The cost of Samsung Electronics appliances is separate.

At the Gonggan Jakupso factory in Hwaseong, Gyeonggi Province, visitors can observe the entire timber modular construction process as well as both the Basic and Premium showrooms. The factory minimizes labor through automation, with robots handling everything from nailing to window fabrication.

"We can produce two units a day based on a 30-pyeong modular home, which means we can supply 40 units a month," Park said. "We plan to expand from the current single production line to as many as four, depending on sales performance." If the scale-up proceeds, the factory could produce up to 160 units per month.

Both the Premium and Basic showrooms in front of the factory let visitors experience an AI home powered by SmartThings. The appliance and Internet of Things package is integrated into a single system designed to offer a user-friendly lifestyle, the company said.

For example, the system can be set to automatically open the curtains at wake-up time while music begins to play. An air purifier and air conditioner that had been running in sleep mode also resume normal operation. Pet owners can remotely monitor their home using a robot vacuum cleaner.

Samsung Electronics aims to use modular housing as a springboard to expand its AI home solution across a wider range of building types, including apartments, offices and multi-family housing.

The company has already been building on partnerships in this space — collaborating with Yuchang E&C last August to set up a Samsung Electronics training center, and showcasing a modular home solution alongside Samsung C&T at IFA 2025 last year, which has since prompted the company to explore overseas modular projects. In North America, Samsung Electronics has teamed up with Clayton, a major US homebuilder, to supply appliance packages for Clayton's newly built homes.

"Last November, we participated in a domestic multi-family housing smart exhibition together with LH and are reviewing how to approach that market," Lee said. "We are also preparing to launch operations in Europe, Australia and Hawaii, and are looking for partners to collaborate with."