South Korea to Establish Water Industry Promotion Agency

The South Korean government plans to consolidate various water industry support functions into a single entity, tentatively named the Korea Water Industry Promotion Agency. This initiative aims to create a comprehensive support system for the water industry, covering everything from technology development to commercialization and international expansion.

On September 10, the Ministry of Climate, Energy and Environment announced its intention to integrate and reorganize the water industry support functions currently spread across several organizations, including the Korea Water Technology Certification Agency, the National Water Industry Cluster, the National Water Equipment Performance Certification Center, the Korea Water and Wastewater Association, and the Korea Water Industry Council.

The government's move to revamp the water industry support system comes in response to the increasing frequency of water-related disasters due to climate change, as well as the growing demand for industrial water driven by the expansion of the semiconductor industry and artificial intelligence.

The global water industry market continues to grow. According to Global Water Intelligence (GWI), the market size is projected to reach approximately $983.3 billion by 2024, with an expected annual growth rate of around 3.5% until 2028.

Since enacting the Water Management Technology Development and Water Industry Promotion Act in 2018 and establishing the National Water Industry Cluster, the government has been supporting the water industry. However, concerns have been raised about the inefficiency caused by the division of support functions among multiple organizations.

Currently, water companies must navigate through different agencies at each stage of product development before bringing their products to market. Testing for verification and certification is handled by the National Water Industry Cluster and the Korea Water Technology Certification Agency, while commercialization and international expansion are managed by the National Water Industry Cluster and the Korea Water Industry Council. The designation of excellent products is the responsibility of the Korea Water and Wastewater Association.

The government plans to reorganize this structure around the Korea Water Industry Promotion Agency, which will serve as the control tower for water industry development, supporting the entire process from identifying promising companies to technology development, commercialization, verification, certification, and international expansion.

Once the integration is complete, water companies will be able to receive support for everything from technology development to international market entry from a single agency, reducing the procedures and time burdens they face during the certification and verification processes.

The specific integration method will be determined through consultations with relevant agencies. The Ministry of Climate plans to establish a consultative body involving the agencies targeted for integration as early as this month to discuss the integration process, organizational structure, and detailed scope of work.

Discussions will also cover employment, compensation, benefits, and management evaluations related to the agency integration. The government intends to develop detailed plans in consultation with the agencies, labor unions, and relevant ministries.

Additionally, the government will work on establishing a legal basis for the integration. It plans to begin revising the Water Management Technology and Water Industry Promotion Act within the year to provide the necessary legal framework for the consolidation of support functions and the establishment of the promotion agency.

Kim Han-seung, the First Deputy Minister of Climate, stated, "In the face of climate change and the era of artificial intelligence, the water industry must be strategically developed to enhance public safety while supporting the growth of advanced industries. By consolidating the fragmented water industry support functions, we aim to systematically support the growth of water companies, creating a solid foundation for the national water industry to expand both domestically and globally."