The water industry act and its enforcement decree are to take effect on Dec. 13. The water industry refers to the provision of drinking water and wastewater services to the residential, commercial and industrial sectors.

Government officials said the water industry will not only resolve drought and other water-related problems but will play a key role in finding new growth engines.

"The implementation of the water industry promotion act will pave the ground for Korea to grow into a global water industry leader. Strengthening of the water industry will create more stable jobs and increase exports and the quality of people's lives," Minister of Environment Cho Myung-rae said.

According to Global Water Intelligence, the volume of the world's water industry is projected to grow 4.2 percent annually until 2022 from $725.2 billion last year.

At present, 72 percent of South Korean water enterprises are small businesses with less than 10 employees, hindering their technological innovation and overseas expansion, officials said.

Under the water industry promotion act and its enforcement decree, water industry products whose performance has been verified will be designated as excellent products eligible for commercialization support from the government.

Small and medium-sized firms that meet specific requirements will be designated as innovative water enterprises for five years to receive various government support.  (Yonhap)