Shinsung Eng., KD Navien accelerate push into heat pump market

(KD Navien)

South Korean HVAC manufacturers Shinsung Engineering and KD Navien are ramping up efforts to expand their presence in the heat pump market as the government recognizes the technology as a key tool for cutting greenhouse gas emissions. The policy shift is expected to boost demand, with the domestic heat pump market—currently worth 2–3 trillion won ($1.4–2.1 billion)—projected to grow by about 10 percent annually in the coming years.

Unlike traditional systems that generate heat directly, heat pumps transfer heat from external sources into indoor spaces, achieving energy efficiencies exceeding 100 percent and earning attention as an eco-friendly technology. Reflecting this, the government plans to include “heat pumps” as an official emissions-reduction mechanism in the 2035 Nationally Determined Contributions (NDC) to be submitted to the United Nations later this year. The 2025 budget of the Ministry of Climate, Energy and Environment allocates 9 billion won for a new air-source heat pump promotion program.

Shinsung Engineering, a refrigeration and air-conditioning affiliate of Kiturami Group, has been focusing on geothermal and water-source heat pump systems, gaining prominence in public sector projects. The company supplied geothermal heating and cooling systems to Nowon Energy Zero House and Godeok Gangil Happy Housing, both zero-energy residential complexes in Seoul.

KD Navien, meanwhile, is targeting the more cost-competitive North American market. In June, the company launched its residential air-source heat pump line, the NAZ series, and began offering an integrated heating and cooling solution tailored to the region by combining the system with its Condensing Hydro Furnace. “The product allows piping connections on both the top and sides, minimizing installation space and earning strong feedback from local contractors,” a company official said.

However, high initial costs—ranging from 10 to 15 million won per household—remain a major barrier to adoption. The installation cost is roughly seven times higher than that of a conventional gas boiler, and under Korea’s progressive electricity pricing system, annual operating expenses are also higher.

According to the Green Energy Strategy Institute, the annual operating cost of a heat pump averages 850,000 won, about 150,000 won more than that of a gas boiler. Still, with heat pumps to be officially recognized as a carbon-reduction measure next year, the industry expects expanded government incentives and stronger market momentum.