K-Water Initiating Innovation of State-Run Companies

Pushing for Four-River and Gyeongin Waterway Projects

K-water has been focusing on efficient water management policies over the past several decades with regard to multipurpose dams, water supply dams and regional water supply systems, in addition to strenuous efforts and contributions toward the development of the national economy and improving the quality of life for local people.
K-water has been carrying out its strategic mission “Water for a Happier World” and is pursuing innovation and change in order to become the “Best Water Partner” in the world.
An assessment of 2008 business performances of 101 public enterprises by the Ministry of Strategy and Finance, released last June 19, showed that K-water was among the three corporations rated in the top “A” category.
Following is an interview with CEO Kim on K-water’s innovation efforts, business projects and future growth vision.

Q: What is the outcome of the managerial strategies of 2009 and the focus of concern for 2010?
A: Since I took office as the K-water CEO, last year seems to be the busiest year in my career in officialdom. I have been exerting my efforts to take the lead in the campaign for the advancement of the management of state-run companies and the recovery of the national economy. As a result, K-water was awarded the top prize in the assessment of public corporations with high appraisals from the National Assembly, mass media and academia.
K-water has been smoothly pushing ahead with major national projects like the Four River Project and the Gyeongin Waterway Project as part of our efforts to lay the groundwork for the much-touted national economic recovery. To prepare a future growth engine for the nation, it has also been pressing for green growth projects and many other overseas projects.
For instance, based on the successful investment in Pakistan for the development of a hydroelectric power station, we will try to explore more foreign markets while focusing on recycled energy projects for green growth comprising wind power, solar energy and hybrid vehicles.
In order to cope with the global agenda of climate change, we will set up a comprehensive master plan in the water resources area centered on the development of new technology and the improvement of processes to achieve low-energy and high-efficiency growth.
K-water is also developing core technologies and utilizing the sharpest minds to take the initiative in the water industry for the future. K-water is ready to embody the image of a reliable corporation fulfilling its social responsibility by actively practicing sustainable, ethical and transparent management along with increasing the customer’s value.
K-water is trying its best to offer customized services, pursuing the reforms and changes that people desire. K-water promises to advance towards becoming the best corporation in the world in which all people are in harmony with water and nature. K-water eagerly anticipates your encouragement and support.
Q: Can you give us more specifics on the efforts to speed up managerial innovation through, for instance, a shift in the salary system?
A: On the basis of understanding and cooperation of all employees, we have been taking the lead in managerial efficiency. For the first time among public corporations, K-water slashed the wages of new employees by 13.4 percent and, based on this, actively took part in the employment drive by creating some 620 jobs including 198 new employees, 265 younger generation interns and daily service providers.
In particular, K-water has introduced an annual salary system for all employees in order to set up a new labor-management relationship based on legality and principles. With the abolishment of the outdated salary system based on seniority, K-water’s new salary system is the closest to the standard device designed by the government for public corporations.
Q: What projects are in place regarding the advancement of public corporations?
A: K-water has already been initiating the project for the advancement of public corporations through, for instance, layoffs designed to improve managerial efficiency.
But K-water will never stop in its efforts toward becoming a global trustworthy water partner through incessant innovation. Toward that end, K-water will continue to cut the number of employees by 475 by 2012 while introducing a performance-based salary system and pressing for a cost-cut drive going forward.
With the goal of fomenting a future-generation business model and state-of-the-art technologies, we will continue our efforts to lead in terms of low-carbon, green growth while making aggressive forays into the overseas markets. Via the innovative reform of organizations and personnel affairs, we will strengthen the K-water community. While nurturing key human resources who will lead the organization, we will seek to have a fair and transparent organizational culture take firm root where capable and diligent employees are properly rewarded. nw

President Kim Kuen-ho of Korea Water Resources Corp.

(from top) Bird’s eye views on the Gyeongin (Seoul-Incheon) Ara Waterway, the projected Ipobo embankment of the Han River, and the projected Gangjeongbo embankment of the Nakdong River, parts of the Four-River Restoration Project.