Ansan, GYEONGGI PROVINCE -- Summer is fast approaching, and a new item to cool the scorching heat is on the rise: a window air conditioner. Made in compact sizes to be installed on windows, the home appliance is gaining popularity for its convenience and space efficiency.

Inside the factory of the country’s No. 1 window AC maker Paseco on Monday, the hands of workers moved fast to assemble the company’s latest window air conditioner that was released just last week.

On the U-shaped conveyor belt at Paseco’s Ansan factory in Gyeonggi Province, Window Air Conditioner 3 was put together from the very beginning -- from implementing the compressor, which is called the heart of the machine, to its plastic covers with modern design.

The completed products also had to undergo many tests for noise, strong air conditioning and dehumidifying functions, before they were finally wrapped up in packages, ready for shipment.

Paseco, which was previously more well-known for its oil heaters, especially among campers, was the first company in Korea to develop and introduce a window air conditioner in 2019.

“We came up with the idea of the window AC under the notion that everyone should have the right to cool air in scorching summers. That was our motto,” Paseco Chief Executive Officer Yoo Il-han said in a press meeting on Monday.

While conventional ACs would need space not only for the appliance itself, but also extra space outside to install an outdoor condenser unit, window ACs come in a single unit and is suitable for those living in small spaces.

As the COVID-19 pandemic has forced people to stay at home, the market of window ACs has suddenly grabbed the attention of other home appliance makers.

On Monday, Samsung Electronics released its first window AC, Window Fit. Hanil Electric, a home appliance company, rolled out is window AC earlier in the year, and Winia Dimchae and Shinil Electronics, other midsize companies, are also set to release their window ACs next month.

In market size, industry officials expect it to expand to 300,000 unit sales this year, rising from last year’s 180,000 units.

As the company is seeing more rivals in the market, Paseco is determined to cement its position as the market leader.

For its third generation product, the company used LG’s dual inverter compressor, which helped reduce noise and energy efficiency greatly, Paseco said.

Paseco Window AC 3 was able to reduce its noise level by 38 percent from its previous models, to 37.1 decibels when put to sleeping mode, proven from an authorized inspection institute, the company said. This is close to the noise level World Health Organization recommended for sleeping at 35 dB.

The inventive item contributed to the company’s sales performance. Since releasing the first window AC in 2019, the company has sold about 150,000 units in the past two years, with sales doubling in the second year in 2020.

Paseco witnessed sales amounting to 198.1 billion won ($178 million) in 2020, up 9.8 percent on-year, and an operating profit of 17 billion won, jumping 58 percent from the year earlier, the company said.

During the press meeting at the factory, Yoo also unveiled a new window air conditioner that is set to be released next month. The new product, that has not yet been named, is a model with a height of 685 millimeters, made shorter than the original Window Air Conditioner 3 model by about 200 mm.

While smaller in size, the model is still powerful enough to deliver the cooling effect to cover areas as large as about 15 square meters, and would be the “smallest” and the quietest window AC to be on the market, Yoo said.

Yoo stressed that Paseco’s window ACs are different from those of their rivals, as they are all made here in Korea. The company has another factory in Dangjin, South Chungcheong Province.

Even electronics behemoths like Samsung Electronics and LG Electronics, are OEM or ODM-based products that are made from other countries, such as China, Yoo said.

Looking forward, Paseco aims to grow its overseas sales.

“Our window ACs are currently sold in Vietnam and Singapore. While it may be a little bit more expensive than its rivals made in China, it is receiving positive reviews from buyers for its good quality,” Yoo said.

“We are also in discussion of exporting our products to Iraq, Brazil, the US and the Philippines.”

Aside from window ACs, Paseco produces oil heaters, air circulators and kitchen appliances, such as stoves, and steamer closets. Paseco is also an original design manufacturer for companies here including Samsung Electronics, and supplies built-in products for its partners such as Hanssem, a home furnishing giant here.

By Jo He-rim (herim@heraldcorp.com)