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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Coway is expanding into the global industrial water treatment market through its wholly owned subsidiary Coway Entech, marking a strategic shift beyond its traditional home appliance business.
According to industry sources on June 10, Coway Entech established a U.S. subsidiary, COWAY ENTECH USA, INC., in Indiana in April—its first overseas entity. The unit is headed by CEO Bang Yoon-hyuk.
Founded in 2016 as a spin-off from Coway, Coway Entech specializes in industrial water treatment, supplying purified water and wastewater treatment solutions for sectors such as semiconductors, displays, petrochemicals, and power generation. Its major clients include Samsung Electronics, Samsung Display, and Hyundai Steel.
The U.S. expansion is closely tied to a recent contract with SK Hynix to provide water treatment solutions for its semiconductor plant in the United States. Coway previously disclosed during its first-quarter earnings call that Coway Entech had secured the project.
The establishment of the Indiana subsidiary is seen as a strategic move to support the SK Hynix project and expand local operations in North America.
Semiconductor manufacturing requires large volumes of ultra-pure water for wafer cleaning, as well as reliable wastewater treatment systems, making water treatment infrastructure critical. As the U.S. accelerates efforts to build a domestic semiconductor ecosystem, demand for industrial water treatment solutions is expected to grow.
Coway Entech plans to leverage the SK Hynix project as a foothold to expand its business to other semiconductor and manufacturing facilities across North America.
Market outlooks also remain favorable. According to market research firm Grand View Research, the global industrial water treatment market was valued at $46.13 billion in 2024 and is projected to grow at a compound annual growth rate of 5.1% from 2025 to 2033, reaching $71.63 billion.
Although Coway Entech currently accounts for a small portion of Coway’s overall revenue—posting about 90.9 billion won in sales last year, less than 2% of the total—the scale of the SK Hynix project is comparable to its annual revenue, suggesting strong growth potential this year.
The move is also significant for Coway’s business diversification. Known primarily for its rental-based home appliance business—including water purifiers, air purifiers, bidets, and mattresses—the company is seeking new growth drivers amid slowing growth and intensifying competition in the domestic rental market. Industry observers say the expansion into industrial water treatment could help Coway strengthen its B2B portfolio and secure a more stable revenue base.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
