Kyung Dong Navien begins domestic mass production of heat pump, completing full local supply chain

Kyung Dong Navien has completed a fully domestic production system for its heat pump lineup after launching local manufacturing of the core air-source boiler unit. The move is seen as a potential springboard for broader participation in government heat pump subsidy programs, where the company's reliance on China-made products had previously been cited as a weakness.

The company announced Friday that mass production of the air-source boiler began at its Pyeongtaek factory in Gyeonggi Province on Thursday. With the outdoor unit now manufactured locally — joining the thermal storage tank and the "Heaty Hub" controller, which were already produced in Korea — Kyung Dong Navien said it has established a fully domestic production chain covering every stage of its heat pump system.

Industry observers say the shift carries significance beyond a simple relocation of manufacturing. Supply stability, after-sales service capability and a domestic production base are frequently weighted criteria in heat pump subsidy programs run by the central government and local authorities. Kyung Dong Navien's overseas production had been flagged as a liability in past bids for such programs, and the industry expects the domestic transition to sharpen its competitive edge.

The company has been building toward this position throughout the year. In May it opened the "Navien Heating Electrification Center" on Jeju Island to run a pilot program, and in June it launched the air-source boiler commercially. As Jeju pursues heating electrification and wider heat pump adoption, Kyung Dong Navien now has an integrated system covering pilot testing, production, installation and after-sales service.

The PEM550 produced at the Pyeongtaek factory is an air-source heat pump that draws thermal energy from the air for space heating and hot water using electricity. It uses the eco-friendly refrigerant R32, which cuts the global warming potential by 68 percent compared with conventional refrigerants, and achieves a seasonal coefficient of performance for heating of up to 5.2 — meaning it can generate more than five times as much thermal energy as the electricity it consumes.

The unit incorporates the Heaty Hub controller for precise management of heating and hot water, and is designed to supply high-temperature water of up to 65 degrees Celsius. The company said it is compatible with existing boiler heating pipes and room-by-room control systems, reducing installation costs for customers switching from conventional boilers.

Kyung Dong Navien plans to use data from the Jeju pilot program to develop a standardized model for a nationwide rollout by 2028. It is also introducing an "NRP (Navien Renewables Partner)" program for its dealer network, offering installation training and quality certification to raise installation standards and strengthen service competitiveness across the country.

"Domestic production of the air-source boiler is a critical foundation for improving supply stability and service competitiveness," a company official said. "We will lead the energy transition market on the strength of our accumulated heating technology."