The Ministry of Climate, Energy, and Environment revealed that it has finalized the selection of 10 small water companies for the seventh round of innovative water enterprises. A certificate presentation ceremony is scheduled for June 11 at the Korea Press Center in Jung-gu, Seoul.
The innovative water enterprise designation system aims to identify small water companies with technological prowess and export competitiveness, nurturing them into strong firms capable of competing in the global market. Since 2020, the government has selected 10 companies annually to support research and development (R&D), commercialization, and overseas expansion for five years.
This year, a total of 25 companies applied, and after approximately two months of evaluation, the final 10 were chosen. The designated companies include Duri Corporation, Greentec INC, JMI, CDC Pneumatic, SM Tech, Kukil Intotech, Daehan Sensor, LSTS, Sambo Science, and Dongyang Water Industry.
The selected companies reported an average revenue of 16 billion won over the past two years. The ratio of R&D expenditure to revenue averaged 5.1%, while the export ratio averaged 12.9%.
Notably, many of the seventh round innovative water companies possess AI and smart water management technologies. Greentec INC has developed an AI-based water supply network management system, while Daehan Sensor has real-time measurement and control technology. LSTS specializes in energy-efficient membrane filtration water treatment technology, and Sambo Science has automatic control technology for coagulants.
The government plans to provide up to 100 million won annually to the designated companies over the next five years. Support will cover the entire growth process of the companies, from establishing R&D strategies to standardizing innovative products, conducting local demonstrations abroad, obtaining international certifications, and developing overseas sales channels.
The growth of innovative water companies receiving government support is already evident. The average revenue of companies from the first to fifth rounds of designation is projected to increase by 19% to 20.3 billion won in 2024 compared to before designation. Average R&D expenditure has also risen by 20.2% to 1.2 billion won during the same period. This level is more than seven times higher in revenue and over 24 times higher in R&D expenditure compared to the average in the domestic water industry.
Successes are also being reported in overseas markets. Last year, innovative water companies secured 26 new overseas projects, amounting to contracts worth approximately 14.8 billion won, and conducted nine overseas pilot projects and technology validation projects.
For instance, ProSave, a second-round innovative water company, saw its exports rise from 4.1 billion won in 2020 to 10.5 billion won last year. Yuchun Enviro also increased its exports from 880 million won to 3.2 billion won during the same period. Third-round innovative water companies, U&U and SC Solution Global, also achieved their first overseas exports after designation.
Kim Ho-eun, Director of Water Utilization Policy at the Ministry of Climate, stated, "The innovative water enterprise support program is leading to tangible overseas expansion results for domestic water companies. We will continue to provide tailored support to ensure that water companies with excellent technology can secure competitiveness in the global market."
* This article has been translated by AI.
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