[Interview] "In Southeast Asia, Requests Flood In to Put the Taegukgi on Korean Water Purifiers"

Interview with Kim Hangjong, Director of Wonbong Technology Research Institute
Wonbong Technology Research Institute, 70% Export Rate... Enhancing Technology through Customized Overseas Market Development
Competing with Low-Cost Chinese Companies through Technological Excellence
30th Anniversary, Investing 2% of Annual Total Sales in Research and Development

Kim Hang-jong, head of Wonbong Technology Research Institute, explained that their technological capabilities naturally improved through the process of developing products that met the demanding requests of overseas companies in Europe, Japan, and other regions. Photo by Wonbong

[Asia Economy Reporter Kim Heeyoon] “Just as semiconductors are popular, water purifiers are also highly sought after overseas. In Southeast Asia, there are even numerous requests to attach the Taegukgi (Korean national flag) to our products and to prominently display 'Made in Korea' in Hangul.”

Wonbong, which exports water purifiers to over 70 countries worldwide, is a home appliance specialist company that has focused solely on this field for 30 years. It gained recognition as a technology company pioneering the water purifier market by being the first in Korea to produce hot and cold water dispensers that use inverted water bottles. Through original equipment manufacturing (OEM), Wonbong has introduced water purifiers and hot and cold water dispensers to demanding overseas markets such as Europe and Japan, earning acclaim for its technological capabilities. Now, the company is poised to evolve into a comprehensive solutions provider through various water-related filter products. On the 23rd, Kim Hangjong, head of Wonbong’s Technology Research Center in Magok-dong, Seoul, explained that developing products based on overseas buyers’ requests, while meeting each country’s water quality standards and material safety criteria, naturally led to enhanced technological expertise.

The filter, which serves as the heart of the water purifier, is considered a culmination of Wonbong’s proprietary technology. Currently, Wonbong produces about 30 types of filters for domestic and international clients. Filters are generally classified by filtration method and function. These include UF (ultrafiltration, hollow fiber membranes) and nano filters designed for direct water use, and reservoir-type reverse osmosis filters. Recently, products combining two or more filtration methods have been released to improve hygiene.

As an export-focused company, Wonbong had no choice but to develop customized filters tailored to the water quality conditions of various countries. The stringent certification requirements sometimes brought the company to the brink of failure. Kim recalled, “During the NSF (National Sanitation Foundation) certification audit, out of 368 harmful substances tested, just one item was detected. That was our second strike in a three-strike system.” He added, “Even after consulting domestic institutions, it was difficult to pinpoint the exact cause. After repeated internal sample tests, we were finally able to obtain the certification.”

Wonbong invests 2% of its annual total sales in research and development. Based on over 120 major certifications and patents, it has developed water purifiers, hot and cold water dispensers, air purifiers, bidets, and filters with 100% in-house technology. All production is also carried out at the Gimpo factory. Photo by Wonbong

Challenged by Half-Price Chinese Products, Regaining Customers Through Technology

Fifteen years ago, a meeting with a Japanese company buyer changed Wonbong’s standards for quality management. Kim said, “The Japanese company contacted us to meet with their R&D staff, quality manager, and production supervisor. During the meeting, they showed us a product with a small internal screw incorrectly installed and asked why. Their detailed criticism, which we had overlooked, made our faces flush with embarrassment.” He continued, “Their demands from product development through mass production, especially regarding air quality management on the production line, prompted Wonbong to proactively convert the manufacturing line into a positive pressure room and unify the product responsibility of line workers.” Satisfying the most demanding customer led to a halo effect, with contract requests pouring in from other Japanese companies. The company noted that 70% of Wonbong’s total sales come from exports, and 70% of those exports are generated in the Japanese market.

The export crisis arrived with challenges from Chinese companies. Chinese water purifier manufacturers offered contracts at half the price to Middle Eastern companies, which were Wonbong’s main export clients. Wonbong lost more than half of its trading companies at that time, but interestingly, orders from Middle Eastern companies began to increase again three years later. Kim explained, “Initially, Middle Eastern companies accepted Chinese products despite slightly lower quality because it was economically beneficial to replace faulty units with new ones. However, as complaints about quality issues continued, they increased their orders with us again.”

A water purifier from Wonbong for export, with the Taegeukgi attached to the upper left corner of the product. Photo by Wonbong

Keeping pace with the ever-changing market trends, Wonbong invests 2% of its annual total sales in research and development. Celebrating its 30th anniversary this year, Wonbong has developed water purifiers, hot and cold water dispensers, air purifiers, bidets, and filters entirely with its own technology, backed by over 120 major certifications and patents. Domestically, it is strengthening market competitiveness under the ‘Luhens’ brand. All production is carried out at the Gimpo factory. This year, the company plans to focus on developing water softening filters, which have proven market potential in Europe. Kim emphasized, “Demand for water softening filters has been confirmed mainly in the European market, and development is underway. Water purifier filters are upgraded annually through technological integration. Since developing a single product requires producing 6 to 7 specifications for different export models by country, it is our destiny. We will devote ourselves to developing technologies that meet diverse international demands for environmental appliances, including air purifiers, beyond water purifiers and hot and cold water dispensers.”