The ILI, developed by the IWA (International Water Association), has been used in many countries as an indicator of water leakage. In Korea, the revenue water has been used as a performance indicator for waterworks although there is an opinion to replace it with the ILI. Hence, it has been necessary to investigate whether the ILI can replace the revenue water in Korea. The four main operating indicators (i.e., water service population, profit-loss ratio, fiscal self-reliance, and aged pipe rate) of 162 Korean waterworks were compared with the ILI with the linear regression method. Local water authorities with more than 1 million water service population, with more than 60% profit-loss ratio, more than 40% and less than 60% fiscal self-reliance, and more than 20% aged pipe rate showed meaningful correlation between the four parameters and the ILI. In the remaining cases, their correlations were little or weak. This means that using the ILI may not be an efficient method to represent the performance of the water supply system in Korea because of the lack of UARL (Unavoidable Annual Real Losses) data accuracy. To use the ILI in Korea, it will be required to carry out an additional research to accumulate reliable CARL (Current Annual Real Losses) and UARL data in the future.