I. Macroeconomic Environment and Trade Risk Analysis

Wood, furniture, and interior design are simultaneously affected by raw lumber, lumber, and panel prices (sawn lumber, plywood, and MDF), logistics, exchange rates, and environmental and safety regulations
. Amid growing demand for eco-friendly construction and remodeling and the rise of online furniture sales, wood legality, emission regulations (formaldehyde and VOCs), and Extended Product Recycling (EPR) (packaging and furniture take-back) requirements are strengthening.

 

Risk factors

2025-2026 Outlook

Influence (1~5)

Implications

Raw material prices (logs and boards)Moderate volatility, differentiated by product4Long-term offtake and alternative species portfolio
Legal timber/forest certification (EUTR, etc.)Strengthening traceability and evidence5Permanent FSC/PEFC/origin documentation
Indoor air quality regulations (E0/E1 grade)Raising formaldehyde/VOC standards4Transition to low-emission bonding and coating processes
Logistics/Exchange RatesEntering the stable zone2CIF/FOB·Insurance Redesign
Design and Safety StandardsExpanded load capacity/flame retardancy/labeling/safety3A pre-approval system for testing and labeling is needed.
Ⅱ. FTA Utilization Rate and Corporate Practice Statistics

For paneling and furniture, the reduced tariff rate significantly affects the overall effect. Key practical requirements include PSR (Revised Tariff Change, RVC), proof of legal wood use, and formaldehyde/VOC documentation .
For custom furniture and DIY materials, managing the country of origin is challenging due to the country of origin of auxiliary materials (hardware and paint) .

Classification (example HS)

FTA applicability (trend)

Major challenges

Management Points

Lumber and board (HS4407/4411/4412)Feel the reduction through RCEP and bilateral FTAsLegal timber certification and tree species identificationCITES/FSC·CO by species·Quarantine documents
Wooden furniture (HS9403)Increased frequency of low-rate/tariff-free policies in the US, EU, and ASEANRVC/CTH·Nationality of MaterialsBOM, country of origin, and unification of auxiliary materials
Seats and Mattresses (HS9401/9404)Medium to high tariff effectFlame retardant, safety, and labelingTest report/material label/safety standard
Flooring, molding, and doorsClassification/flame retardant gradeVOC, flame retardant, wear resistantContinuous update of product standards and performance documents
III. Matrix of Comparison of Tariffs and Non-Tariffs by Country

For the US and EU, legal timber, chemicals, safety, and labeling are more important than tariffs. For ASEAN, tariff reductions, customs clearance, and addressing deviations from local standards are crucial.

market

Representative items

MFN (trend)

When FTA is applied

Non-tariff barriers (example)

Comments

USAWooden furniture and flooringMedium rateLow-rate/tariff-free expansionTSCA/Formaldehyde, TIP-over, labelObserve safety regulations for children and household use
EUBoard materials and furnitureMedium rate0%/discountEUTR (legal wood), E1/E0, REACHFSC/PEFC·Low Emissions Required
ukFurniture and flooringMedium rateInhaUK Timber Reg., labelSimilar to the EU, but with separate procedures
ASEANFurniture/DIYMedium rateRCEP/Bilateral ReductionQuarantine, Standards, and Local LabelsAdvantageous use of accumulated funds within the region

Note: Required documents and tests may vary depending on HS, species, adhesive, and coating ingredients, so prior approval and sample label approval are recommended.

Ⅳ. Impact of ESG, EPR, and Indoor Air Quality

Although not directly subject to CBAM, regulations on forestry, legality, recycling, and indoor air quality are becoming increasingly sophisticated as supply requirements.
Europe is expanding its furniture Extended Product Responsibility (EPR), and domestic and international public procurement is increasingly requiring low-emission and eco-friendly certification .

System/Issue

Core requirements

Influence (1~5)

react

Legal timber (EUTR/national legality)Origin, logging permit, and transportation documents5FSC/PEFC·Traceability System
Indoor Air Quality (E0/E1/California CARB)Formaldehyde/VOC emission limits5Low-emission adhesives/coatings/testing on a regular basis
EPR (furniture/packaging)Recovery, Recycling, and Labeling4Modular, disassembled design, and r-materials
Eco-friendly procurementEco-friendly certification/LCA3K-Mark/Eco Label/LCA Data
V. Investment and Supply Chain Transition Scenario

Korea: A hub for premium custom furniture, custom interiors, and smart manufacturing (digital cutting/edge, PLM).

Vietnam/Malaysia/Indonesia: Mass production/sheet processing + RCEP accumulation (optimal tariffs/lead time)

EU/US Local: Label, Safety, and Low-Emissions Microfactory (Last-Mile Assembly/Installation)

Raw material linkage: Long-term offtake through CITES and legal timber acquisition + high-value-added finishing/assembly in Korea

Ⅵ. AI-based 3-month export and import forecasts

Combining news and policy sentiment (α), global sentiment (β), and housing and remodeling demand indicators (λ), we expect a gradual recovery in online sales and remodeling demand , with improvements centered on paneling and furniture .

variable

Δ(%) or exponent

analysis

ΔExport_now+2.0Exports of sheet metal and custom furniture are increasing simultaneously.
ΔImport_now+1.3Reinforcement of wood, boards, hardware, and paint
ΔPrice_now+0.4Reflection of low-emission and premium finishing material unit prices
ΔSignal_now+0.026Improving housing and remodeling psychology
ΔFTAEffect+0.30Tariff gap + regional cumulative effect
Forecast_3M+0.47A gradual improvement is expected over the next three months.

Formula (summary): Forecast_3M = 0.5·ΔSignal + 0.3·ΔFTAEffect + 0.2·ΔPrice

VII. Policy Recommendations and System Improvement Roadmap

field

Suggestion

Executor

Expected effect

Legal timber and traceabilityElectronic Document Platform for Origin, Logging, and TransportationKorea Forest Service and Korea Customs ServiceMinimizing customs clearance risks
Low Emission StandardE0/E1·CARB Mutual Recognition GuideMinistry of Trade, Industry and Energy and Ministry of EnvironmentReduce testing and documentation costs
FTA+RCEP cumulativeAutomation of BOM origin including auxiliary materialsKorea Customs Service and KOTRAIncrease utilization rate and bidding competitiveness
Circular Economy/EPRRecovery, Refurbishment, and Recycling IncentivesMinistry of Environment/Local GovernmentESG scores and procurement competitiveness
Smart manufacturingDigital Cutting/PLM·Mass CustomizationMinistry of SMEs and Startups/Innovation CenterReduce lead time/inventory costs
Ⅷ. Summary of Conclusions

The effectiveness of the FTA for wood, furniture, and interior design is the sum of tariff reduction and legal wood, low emissions, safety, and labeling compliance.

Forecast_3M: +0.47 — A gradual increase driven by remodeling and online demand.

Recommended strategies: ① FSC/PEFC·legal wood system ② Regularization of E0/E1·CARB testing ③ RCEP accumulation·automation of the origin of auxiliary materials ④ Modular·refurbished-based EPR response.