Daegu City rolls out all-out support to revive water industry, including record budget and expanded public procurement

【Financial News, Daegu = Reporter Kim Jang-wook】Daegu City is drawing attention as it launches all-out support to revive the water industry, including a record-high budget and expanded public procurement.
Daegu City announced support measures to revive the water industry, expand the investment base for advanced industries and improve commuting convenience after Mayor Choo Kyung-ho held the 7th Emergency Economic Measures Meeting on the afternoon of the 27th at the National Water Industry Cluster in Guji-eup, Dalseong-gun. The meeting focused on “Support Measures for Companies Located in Daegu National Industrial Complex, Including Water Industry and Investment Companies.”
Mayor Choo stressed, “I am well aware of the difficulties local water companies have faced on the ground. I will monitor implementation through to the end to ensure that the various support measures for reviving the water industry are felt on the ground.”
He added, “We will listen more closely to businesses and spare no effort in providing the support they need so that Daegu National Industrial Complex can emerge as a hub for the water industry and advanced industries,” and, “We will create conditions in which businesses can invest with confidence and continue to grow, adding vitality to the local economy.”
The city will allocate a record 5.7 billion won to promote the water industry in 2027, a 178% increase from this year’s 2.05 billion won. It will continue supporting existing programs at pre-2022 levels and launch new initiatives to foster businesses’ technological innovation and competitiveness.
As a new initiative, the city will invest 12 billion won over five years (10 billion won in city funds and 2 billion won in private funding) in the Water Industry Future Technology Convergence Technology Development Support Project, which supports collaborative research and development among water companies and the transition to artificial intelligence (AI). It will also launch a new, five-year support program worth 1 billion won to help local water companies jointly enter promising export markets for the water industry.
The city will also increase public procurement of products from the Water Industry Cluster in 2027 to at least 21.5 billion won, up 24% from the average of 17.3 billion won over the past five years. It will also promote the use of products from local companies in planned major construction projects, including the Seongseo Wastewater Treatment Plant (design in 2027, 46.4 billion won) and the National Industrial Complex Wastewater Treatment Plant (design in 2028, 49.1 billion won).
The city is pursuing designation of the Water Industry Cluster as an Opportunity Development Zone to strengthen its competitiveness in attracting investment. If designated, new-investment companies will receive a 100% corporate tax exemption for five years, while companies relocating from the capital region will receive a 100% acquisition tax exemption for five years and a reduction in property taxes, among other substantial tax benefits.
To improve transport conditions at the national industrial complex, a new demand-responsive transit (DRT) service will begin operating on three routes from 7 a.m. to 7 p.m. starting in April 2027. The service is expected to make travel within the complex more convenient and connect its outlying areas with stops on the Direct Route 2 line, shortening travel times by at least 30 minutes and improving access to downtown by public transit.

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