K-eco drives national water industry’s growth, overseas expansion
Korea Water Cluster provides testbeds to domestic companies, focusing on verification system
Korea Water Cluster, a business complex located in the city of Daegu in southeastern Korea, provides integrated services to companies in the water industry, including demonstration facilities and test-beds for new technologies and products, training programs for water industry professionals, business incubation and support services for water startups.
Operated by the Korea Environment Corp. (K-eco), the water cluster, which stands in the southwestern part of the city, plays a central role in advancing the development of the nation’s water sector by setting up a system to verify the performance of related technology.
The global water market is projected to display an annual growth rate of 4.2 percent. This optimistic forecast is fueled by significant investments in developing nations and a rising demand for water treatment solutions compliant with environmental regulations.
However, the growth of Korea’s water industry has been sluggish, marked by a mere 2.9 percent growth rate, which falls notably below the global average. This is largely attributed to the domestic industry’s emphasis on catering to local demand and its underperformance in overseas markets.
In response to these challenges, the Korea Water Cluster aims to address the limitations of the domestic water industry. Recognizing technology verification as a significant hurdle for exports, K-eco focused on assisting domestic companies in verifying their water technology and issuing certifications.
The Korea Water Cluster opened in 2019 and the Ministry of Environment invested 240.9 billion won ($182 million) in state funds to promote the water industry. Through K-eco’s efforts to establish a verification system, export volume grew by a staggering 119 percent last year compared to 2020, when the corporation began the project in earnest. Additionally, the activation of the cluster has contributed to the creation of approximately 36,388 jobs.
Spanning an area of 145,000 square meters, the cluster encompasses 10 facilities. These include a water campus designed for the training of industry professionals, as well as empirical facilities dedicated to conducting performance tests on water products.
Occupant companies have the opportunity to leverage the cluster’s facilities to facilitate their expansion into overseas markets. By offering support in marketing, consulting, and global expansion initiatives, the cluster functions as both an incubator and a test bed for these companies.
As of March, the cluster boasts an impressive occupancy rate of 98 percent, with a total of 118 companies located within its premises.
Aiding expansion of Korean companies
To facilitate the overseas expansion of domestic companies, the Korea Water Cluster concentrates on developing procedures for issuing certificates attesting to the functional qualification of water technology. This initiative aims to address the challenges that outstanding domestic technologies encounter when entering foreign markets.
For instance, a company named Sseng possessed 24 domestic and foreign patents on core water treatment technology since 2008, but struggled to find a market.
With support from the Korea Water Cluster, the company underwent eight performance verifications over a span of two months, covering aspects such as turbidity removal and water quality suitability. As a result, a functional qualification certificate was issued by the Korea Institute for Water Technology Certification and the Korea Water Cluster.
After receiving a national certification, the company’s water technology underwent objective validation for its reliability. Subsequently, it successfully commercialized its technology by securing an overseas export agreement valued at $6.8 million, targeting markets in Malaysia and Vietnam.
Similarly, another company named CAST developed a technology renowned for its high energy efficiency and miniaturization, ideal for removing heavy metals and carcinogens during the water treatment processes. Despite holding 14 intellectual property rights since 2020, the company faced challenges in commercialization.
However, with support from the Korea Water Cluster, the company successfully entered the water treatment equipment markets in Tanzania and the United States, following the verification of its ozone-generating technology.
Through its role as an incubator and facilitator of global expansion, the Korea Water Cluster contributed significantly to overseas exports, which amounted to 109.3 billion won as of March this year, up from 18 billion won in 2019. The amount of exports is continuously increasing, according to K-eco.
Hosting international conference
In a bid to further support domestic companies in their global endeavors and foster international collaboration, K-eco hosted an inaugural international conference in March.
Attended by over 200 individuals, including officials from major corporations like POSCO, business owners and representatives from K-eco, the event focused on the water industry’s role amid a global focus on addressing climate change.
Distinguished figures such as Tom Mollenkopf, chairman of the International Water Association, along with domestic and foreign scholars specializing in water technology and industry, actively participated in discussions to shape the future direction of the water industry.
K-eco Chairman Ahn Byung-ok emphasized the crucial role of innovation and collaboration in tackling pressing environmental issues, utilizing artificial intelligence and big data.
“The climate crisis is rapidly evolving into a water crisis, with increasing instances of torrential rains and extreme droughts,” Ahn said.
“To overcome these challenges, we must enhance our responsiveness through digital transformation in water technology.”