Donghwa Entec, World-Leading Technology Company, Designated as Advanced Technology Enterprise in R&D Special Zone

Proven Eco-Friendly Advanced Technology, Anticipating Global Growth
"Accelerating Innovative Growth Through Advanced Technology Company Designation"

Donghwa Entec Co., Ltd., which possesses world-class technological capabilities, has been designated as an advanced technology company within the Research and Development Special Zone.

The Research and Development Special Zone Foundation (Chairman Jung Heekwon) announced on November 18 that Donghwa Entec (CEO Kim Donggun) has been newly designated as an "advanced technology company" with the approval of the Minister of Science and ICT.

Established in 1980, Donghwa Entec is a company that localized heat exchangers for ships and plants. Recently, the company has gained global recognition for its eco-friendly energy conversion and utilization technologies, including the LNG-powered eco-friendly ship Fuel Gas Supply System (FGSS), PCHE Type Heat Exchanger (HP Vaporizer, Pre Cooler for hydrogen refueling stations), and BOG Compressor.

Heat exchangers are essential industrial equipment, and Donghwa Entec is a rare technology company that independently designs and manufactures nearly all types of heat exchangers for ships and onshore plants, including S&T, Fin Tube, Plate Type, S&P, PCHE, and PFHE.

In particular, the "high-pressure LNG heat exchanger," which was recognized as an advanced technology and product this time, is used in regasification facilities at onshore and offshore LNG terminals and as high-pressure vaporizers in FGSS. It boasts a global market share of 70%.

Donghwa Entec's sales last year amounted to 298 billion won (with consolidated sales of 372.7 billion won in 2024), and the company invests more than 3% of its sales in research and development. Over the past five years, it has achieved an average annual sales growth of 29% and registered more than 110 domestic and international patents and other intellectual property rights.

Kim Donggun, CEO of Donghwa Entec, stated, "With this designation as an advanced technology company, we expect to save approximately 10 billion won in taxes over the next five years. We plan to reinvest the tax benefits into research and development, and through eco-friendly technology, we hope to contribute to humanity, starting with the shipbuilding industry, expanding beyond industries, generations, and continents."

CEO Kim emphasized, "With a commitment to proper and upright management, we will focus on securing fundamental technologies for the efficient and safe utilization of hydrogen energy."

Since 2013, the Research and Development Special Zone has supported Donghwa Entec with a total of three projects and 950 million won in government funding for research and development and commercialization of heat exchangers and desalination equipment through 2018.

In 2023, the foundation operated a research council involving the four major shipbuilding companies (Hanwha Ocean, HD Hyundai Heavy Industries, Samsung Heavy Industries, and K Shipbuilding) and supported the signing of a "joint research NDA" between Samsung Heavy Industries and Donghwa Entec.

A representative from the Research and Development Special Zone stated, "With the designation as an advanced technology company, we expect to accelerate the development of high-value-added new products and overseas expansion through expanded industry-academia-research cooperation and various support measures linked to the R&BD projects of the Special Zone. We will continue to support Donghwa Entec in establishing itself as a leading company in global market expansion and sustainable eco-friendly technology."

The advanced technology company designation is granted to companies with research and commercialization capabilities in advanced technologies and products, which are key drivers of national economic growth. It is significant as official recognition of technological capability, and designated companies receive various benefits, including tax reductions, technology finance support, and additional points in government and local government projects.

The requirements for designation are: (1) location within the Research and Development Special Zone, (2) sales of advanced technologies and products accounting for at least 20% of total sales, and (3) R&D expenditures amounting to 3-5% of total sales. Advanced technologies and products must either comply with government-announced standards or be technologies subject to regulatory sandbox exemptions under the Special Act on the Promotion of the Research and Development Special Zone.

Tax benefits include a 100% reduction in corporate tax for three years and 50% for the following two years, up to 100% reduction in property tax for up to seven years and 50% for the following three years, and exemption from acquisition tax within the Special Zone.

Additionally, companies receive preferential treatment from the Korea Technology Finance Corporation, such as a guarantee limit of up to 2 billion won depending on the technology evaluation grade, an increased guarantee ratio (up to 100%), and a reduced guarantee fee rate (up to 0.5 percentage points).

This content was produced with the assistance of AI translation services.