South Korea's Cybersecurity Falls Behind Emerging Markets

South Korea's Cybersecurity Industry Faces Challenges in Global Competition

South Korea has made significant strides in various industries, including semiconductors, mobile phones, and content creation. However, the cybersecurity sector remains underdeveloped compared to global standards. A high-ranking executive from a domestic security company highlighted that while K-companies have achieved international recognition in other sectors, the cybersecurity industry still operates at an emerging market level. No local firms have managed to enter the global top 10, which is a major concern given the increasing sophistication of cyber threats.

To address these challenges, the industry needs to expand its scale and invest more in research and development (R&D). The gap in revenue between South Korean companies and their global counterparts is stark. For instance, U.S. firm Palo Alto Networks reported annual revenue of $9.2 billion (approximately 13.5 trillion Korean won), while global players like Fortinet and Cisco also generate revenues in the trillions of won. In contrast, SK Shieldus, the only domestic company to surpass 2 trillion won in revenue, also offers physical security services such as ‘ADT Caps.’ When focusing solely on cybersecurity, major local companies fall far behind. AhnLab, for example, reported around 260 billion won, and mid-sized firms range between 50 billion and 100 billion won.

According to the 2025 Information and Communication Security Industry Survey, the average sales of information security companies in 2024 were 9.2519 billion won for large enterprises, 1.1397 billion won for medium-sized enterprises, and 0.1701 billion won for small enterprises. These figures underscore the need for growth and investment in the sector.

Market Size and Investment Gaps

The global cybersecurity market is expanding rapidly, with North America alone reaching approximately $87.7 billion (around 129 trillion won) this year. Japan’s market is valued at about $11.5 billion, but South Korea’s market size remains significantly smaller at $5.9 billion. An industry source pointed out that differences in market scale inevitably lead to gaps in R&D investment, resulting in disparities in security technology capabilities.

This lack of investment not only hampers technological advancement but also makes it difficult for South Korean companies to compete globally. The sector faces additional challenges in securing talent. Another industry source noted that even those who have won international hacker competitions often move to big tech companies because they are not provided with proper treatment.

Talent Shortage and Industry Struggles

The cybersecurity industry in South Korea is struggling to attract and retain skilled professionals. Despite the growing demand for cybersecurity expertise, the sector lacks sufficient talent. This shortage is exacerbated by the fact that many skilled individuals are lured away by larger tech companies offering better compensation and opportunities.

Industry experts suggest that addressing the talent shortage requires a multi-faceted approach. This includes improving working conditions, offering competitive salaries, and investing in education and training programs. Without these measures, the industry will continue to lag behind its global counterparts.

Future Prospects and Recommendations

To bridge the gap between South Korea’s cybersecurity industry and global leaders, several steps must be taken. First, there is a need for increased investment in R&D to develop advanced security technologies. Second, the government and private sector should collaborate to create a supportive environment for cybersecurity professionals. This includes offering incentives for talent retention and fostering partnerships between academia and industry.

Additionally, raising awareness about the importance of cybersecurity among businesses and the general public can help drive demand for secure solutions. As cyber threats become more sophisticated, the need for robust and innovative security measures will only grow.

In conclusion, while South Korea has made impressive progress in other industries, the cybersecurity sector must catch up to remain competitive on the global stage. With strategic investments, talent development, and collaborative efforts, the industry can overcome its current challenges and build a stronger future.