The State-run Korea Water Resources Corp., better known as K-water, is seeking an innovation in water management, declaring a shift to “smart” water management.

The change came after the new K-water CEO Choi Gye-woon presented a corporate vision on Jan. 2 addressing the challenges lying ahead for the nation’s long-time sole water resource developer.

“K-water has contributed to the nation’s economic development and enhancement of people’s lives with a clean and stable water supply since its foundation (in 1967), but it faces growing demand for better water quality and an advanced water management system,’’ Choi said.

Despite its globally competitive water supply infrastructure, Korea faces a risk of water shortage. Korea is a “water stress nation” in terms of per capita water availability, according to the United Nations.

Further, the nation’s dam-based water supply will likely be hit on account of citizens’ growing opposition to building the dams.

“This is the right time for K-water to seek change and innovation in its core business operations and corporate culture,” the chief executive stressed.

One of the solutions the company has come with is to invest in building a Smart Water Grid network and an integrated water management system.

A Smart Water Grid network is a high-efficiency next-generation water supply and demand management system that uses advanced information and communication technologies.

Under the network, K-water will be able to distribute water to consumers in a more efficient and stable way.

When the Smart Water Grid project is launched as planned in the middle of this year, K-water will achieve global competitiveness in the field, said Choi, who had carried out water-resource related studies and projects, including the state-funded smart water grid project when he was a professor at Incheon National University.

The construction of the network and the integrated water management system can be likened to building a cradle-to-grave welfare system for supplying water, industry watchers said.

The Smart Water Grid project will also help the company to grow into a global water management solution provider, the added.

However, regulatory reforms and government support from various ministries, including the Ministry of Land, Infrastructure and Transport and Ministry of Environment, is needed, along with public consensus.

“K-water will make all-out efforts to realize the new corporate vision. 2014 will be the year we start preparing for a true paradigm shift in water management, which will not only solve water-related issues but also continue contribute to the people’s welfare,” the K-water CEO said.

Internally, Choi said he would focus on improving the firm’s financial health, mainly involving reducing the 8 trillion won ($7.5 billion) of debt it had incurred to follow through with the previous administration’s four-river renovation project.

By Seo Jee-yeon (jyseo@heraldcorp.com)