[SeoulTech x IT Donga Joint Planning] The Early Startup Package Support Program (hereinafter referred to as the Early Startup Package) is a major startup support project by the Ministry of SMEs and Startups and the Korea Institute of Startup & Entrepreneurship Development, aimed at fostering the growth of promising startups in their 1st to 3rd years. The Startup Support Group of Seoul National University of Science and Technology will serve as the host institution for the Early Startup Package in 2025, assisting the growth and development of early-stage companies. IT Donga, in collaboration with the Startup Support Group of Seoul National University of Science and Technology, examines promising startups in growth.


The proliferation of AI and high-performance computing has led to severe heat issues in overloaded servers and workstations. The limitations of existing air-cooled cooling systems have highlighted the need for water-cooled solutions, but many companies hesitate due to difficulties in selecting a system suitable for their environment and concerns over complex management post-adoption.

'H3 Solution (CEO Choi Hyung-seok)' is a water-cooled computing specialist startup that has emerged to address these issues. Unlike existing solutions that rely heavily on foreign products, H3 Solution manufactures over 50% of its water-cooling components in-house, demonstrating a high level of technical understanding. This allows them to achieve delivery times at half the industry standard and provide customized solutions and differentiated services based on over a decade of computing experience. An interview with CEO Choi Hyung-seok explores the future of water-cooled computing envisioned by the company.

- It is heard that you have accumulated extensive experience in the computer industry. What journey did you take to start your business?

: Since around 2015, I worked at a computer sales/distribution company in Yongsan, and naturally became interested in this field as water-cooling systems began to gain attention around 2018. Initially, I encountered foreign products through YouTube, and as the company grew, we started dealing with workstations and servers.

At that time, I had no concrete thoughts about my own business. I had risen to the position of director within the company, with a high rank and a decent salary. However, as I handled sales and after-sales service, I met customers directly and understood their needs, which led me to think about starting my own business.

I felt the need for a brand specialized in water-cooling systems beyond just selling assembled computers. I resigned in 2023, prepared for about a year, and founded the company in January 2024, launching the 'Nautilus' brand of complete water-cooled servers in August.

- What are the characteristics of H3 Solution's product lineup?

: The biggest feature is in-house production. We manufacture water-cooled cooling systems ourselves and provide servers and workstations based on them. We can produce about 50% of various components, including cold plates (components that absorb heat by directly contacting the CPU or GPU), water blocks, and radiators, in-house.

Particularly, there are not many brands worldwide that manufacture GPU cold plates. In Korea, I know of about three companies that make them properly, but those companies handle cooling-related components in general, not specializing in computing. I believe we are the only company specialized in both cooling and computing.

- Could you elaborate on the differences from existing products?

: Lead time (the time from product order to delivery) is the biggest differentiator. Other water-cooled products can take up to 8 weeks or more from order to delivery, but due to our high in-house production ratio, we can ship to customers within 2 to 3 weeks. Time is money for customers.


Technically, we adopted a parallel structure using a manifold (a device that distributes coolant in multiple directions). Existing products mainly use a serial structure, which cools sequentially one by one, whereas a parallel structure allows simultaneous cooling of all components, making it much more efficient.

We also produce our own coolant. We import it from other coolant specialist companies and create our own mixing ratio, which is another differentiating factor. Additionally, since we actually build and operate servers, we can test in realistic environments.

- You emphasize high product performance and ease of management. What features have you applied to achieve this?

: Compared to air-cooled systems, we excel in all performance indicators. In terms of noise, a typical air-cooled server is about 80 decibels, while our product is 45-50 decibels. Cooling performance is also superior; air-cooled systems can reach nearly 80 degrees Celsius, whereas ours remains below 60 degrees, over 20 degrees lower. Lowering the temperature by just 1 degree requires significant effort, but switching to water cooling reduces it by 20 degrees.

Power consumption is reduced by about 40%. This figure includes not just the server's power consumption but also the power required for air conditioning and other air control devices needed due to server heat.


Management is not complicated. All components are sealed, so they can be used like a regular computer placed beside you. Our self-developed monitoring program, 'NautiVision 1.0,' provides predictive maintenance features. Existing programs alert when temperatures reach 90 or 100 degrees, but we accumulate data like a weather forecast to alert before problems arise. The more data accumulated, the more precise it will become.

- What is your business model? Do you mainly sell complete products, or do you also supply components? How do you provide customized services, considering each customer's requirements?

: Our main focus is on complete water-cooled servers and workstations. While we have standard specifications, most are customized through consultations with customers. We discuss which CPU to use, which GPU, how much memory is needed, and configure according to customer preferences. General PCs can also be supplied upon customer request.

We also handle upgrades and maintenance of existing products. Upgrading air-cooled systems to water-cooled systems is also possible.

- What types of customers mainly seek your products? Could you share specific adoption cases or achievements? How do you compete as a relatively small startup against large corporations in the market?

: Many AI-related companies are our customers. Recently, we supplied to a company developing medical AI solutions, which replaced their problematic air-cooled servers with fully water-cooled ones, resolving their issues.

Other potential customers include 3D graphic content companies, bio, robotics, and automotive companies—any company requiring a certain level of computing power. Servers are needed in fields that require simulations.

To compete with large corporations, we aim for 100% localization of water-cooling components. Our software, NautiVision, will become more robust as more data accumulates. Especially, many existing large corporations are foreign companies, which may not fully understand the detailed needs of domestic customers. We are targeting this niche.

- As a first-year startup, what realistic challenges are you facing? From funding to market development, there must be many tasks. How are you overcoming them?

: Funding was the biggest issue, but it is gradually being resolved as we are selected for government projects. Market development is also being addressed over time through marketing and sales efforts. The know-how and network from over a decade of industry experience have been a great help.

The startup support program at SeoulTech is also extremely helpful. They are receptive to discussing deficiencies and strive to connect us. Through support for participation in global exhibitions, lectures, and mentoring related to attracting investment, we have been able to expand our new network.


- What kind of company do you want to grow into? Could you share your short-term goals and long-term vision?

: We want to expand into data centers and cloud sectors. We aim to strengthen our brand by handling a variety of product lines, including general PCs and mini PCs. Our goal is to become a company that can reach all customers, whether B2B or B2C.

We are also working to attract investment and are proceeding with the Early Startup Package. We aspire to grow into a company with true brand power beyond mere product supply.

IT Donga Reporter Kim Young-woo (pengo@itdonga.com)

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