Water supply facilities have been continuously increased to supply 31 million tons of water a day which makes 91.3% diffusion rate benefiting 45 million people in the end of 2006. Although it has succeeded in increasing water supply facilities, there have been several internal problems.

Based on prior researches and statistics data, some problems are pointed out: first, production cost rises due to small-scale of business, second, poor management due to lack of expertise, third, passive investment due to lack of understanding, fourth, unrealistic water rate due to political decisions, fifth, duplicated and surplus investment due to dualistic system between development and operation of water supply, sixth, chronic deficit due to inefficient management, seventh, difficulties in investigation into actual conditions due to lack of consistency in water supply statistics.

In result of a survey from people in charge of water supply, problems in development and management of water supply facilities are revealed. Over 70% of local public servants answered the most serious problem would be fragility of local finance. 62% said working period in this sector is less than three years. Especially public servants from Seoul and other metropolitan cities said water rates are excessively high.