Hanssem Co., South Korea's leading home furnishing company, said Monday it will invest 85 billion won (US$74 million) by the end of next year to expand its presence in China.

Hanssem said it will open its first shop in a Shanghai shopping mall in July 2017 and operate online malls to sell its home design, furnishings and kitchenware.

The Korean firm invested 30 billion won in the first half of this year to establish a Chinese branch in Shanghai, about 7 percent of its equity capital, and assigned 55.2 billion won to buy stakes in two of its Chinese affiliates.

Hanssem generated 99 percent of its revenue from the domestic market, but it has been seeking to tap into overseas markets in the face of tougher competition with Swedish furniture giant IKEA and local rivals.

Hanssem posted 474.8 billion won in sales in the third quarter and had its largest quarterly profit since 2011 thanks to strong demand in home furnishing and kitchenware.

(Source: english.yonhapnews.co.kr)