Information Security

Report summary

Text reads: South Korean market intelligence report 2022 - Info security

South Korea (Korea) is one of the most connected nations on earth and the ICT infrastructure that supports this connectivity has proven vulnerable to cyber-attacks. As the country races towards the Digital Transformation, the amount of data being produced, stored and transmitted is increasing at a phenomenal rate. In parallel, Korea is facing a proliferation of cyber threats, domestically and internationally. Ensuring the security of personal, corporate and government data is therefore recognised as essential not only for the health of the Korean economy but also for the security of the state itself, and demand is strong for information security (InfoSec) solutions that can help in this effort.

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Key figures: Market size: £7.4 billion. Average company IT budget allocated to information security: 61.8%
Text reads: Made in the UK, sold to South Korea

The Korean InfoSec market

Korea takes pride in being one of the world’s most connected nations and is working to build its competency in sectors such as the Internet of Things (IoT), data analytics and artificial intelligence (AI). With greater connectivity and a burgeoning data economy comes the need for enhanced information security. Valued at £7.4 billion in 2020 with a 6.4% annual growth rate, the InfoSec market is one of the most dynamic sectors within the Korean IT market. According to the Korea Internet and Security Agency (KISA), the share of InfoSec in the overall £7.4 billion security market is growing on average 8.7% year-on year.

Opportunity areas for UK companies

The demand for data encryption software exists in all market verticals that involve cloud services, storage and management of user data. It is particularly high in sensitive areas such as healthcare, e-commerce, telecommunication and financial services, as well as autonomous vehicles.

The UK is recognised as a powerhouse for InfoSec solutions in fintech and the broader financial services sector, with opportunities including digital payments, encryption, authentication solutions and fraud detection. For authentication in particular, the move from older protocols to modern biometric identification will provide strong market opportunities for British companies.

Korean key players in InfoSec

Korea has several large players in the information security industry primarily supplying the local market. The largest is SK Shidlus, an affiliate of the SK Group. Another large player is AhnLab, a notable start-up success story. Other key players include several up-and-coming competitors such as Penta Security, Secui and Fasoo.

Government and InfoSec

The Korean government has been actively pursuing the Digital New Deal policy announced after the outbreak of the COVID-19 pandemic to facilitate national innovation projects with a focus on job creation and the transition to a digital economy.

Market entry checklist

UK businesses looking to engage in a strategic partnership or introduce their technology or product into Korea should first consider both business-related and cultural factors.
These may include:

  • Do we have a strong differentiator – something that sets us apart from our competitors in the market?
  • Do we have a strong track record in other major markets? Korean companies are not easily convinced to use a new, disruptive technology as a first-mover without case studies
  • Are we willing to localise the product for the market and/or for local regulations, if necessary?
  • Are we ready to provide a Proof of Concept (PoC) at little or no cost to the customer? Korean companies will look to drive the price down and will not commit before proving the value through testing.
  • How do we provide after-sales support? Korean customers expect high-quality, local-language support

UK businesses can approach the Korean market through direct sales from the UK, by appointing a partner, or by setting up a local office.

The UK is strong in fintech and financial security. Traditionally a manufacturing country, Korea needs more service sector technology particularly in blockchain, AI and fintech.

President of the Korea Association of Chief Information Security Officers

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