Korean securities companies tap Southeast Asian market

2023. 6. 7. 10:51
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South Korean securities companies are turning to Southeast Asia to expand their overseas businesses.

According to the securities industry on Tuesday, major securities companies in Korea are stepping up to expand their presence in Southeast Asia as they see tangible results in the region.

The strong performance is driven by supplies to areas where cyber security is important, such as public institutions and the financial sector as well as orders related to national public projects.

Data from business data platform Statista Inc. showed that sales of Southeast Asia’s cybersecurity market are projected to reach $3.83 billion this year. The market is expected to grow at an annual average of 11.85 percent by 2028.

Southeast Asian countries are gradually expanding IT services based on their rapid economic growth. They are also considered a market that is relatively easy to access given the favor given to Korean companies.

Fasoo Inc., a Korean company engaged in data and application security business, is targeting the U.S. and Southeast Asian markets. The company saw exports account for 5.29 percent of its entire sales, up from 2.75 percent over the past three years.

Fasoo plans to expand its business further in Southeast Asia by seeking local partnerships.

Korea’s largest securities company AhnLab Inc. supplies its intelligent threat response solution AhnLab MDS to financial institutions such as state-owned banks and large insurance companies in Malaysia.

AhnLab Inc. logo [Courtesy of AhnLab]
Genians Inc., whose main focus is network access control (NAC), aims to use its NAC technology to win public projects in Thailand and Malaysia this year.

Data center securities solution provider POILINK Inc. delivered record-high quarterly sales in the first quarter. It recently announced plans to expand its presence in Southeast Asia.

The move by local securities firms comes as they hope to move away from their dependence on the domestic market and earn foreign recognition.

An analysis of business reports released by major domestic cyber securities companies showed that most of the companies’ exports account for a mere 2~5 percent of their entire sales.

The figure for AhnLab, the largest market cap player, was 3.09 percent last year, Genians 2.38 percent, Fasoo 5.29 percent, and PIOLINK 13 percent.

Smaller companies are also shifting focus to the region. About 92 percent of domestic security companies have less than 5 billion won ($3.89 million) in capital, indicating a high proportion of small and mid-sized enterprises (SMEs) in the sector.

“Not only large-scale companies but also SMEs are inquiring about tapping into Southeast Asia and overall demand is increasing,” said Park Sae-rom, head of global growth division at the Korea Information Security Industry Association (KISIA).

An industry-level support plan is also being unveiled for domestic security companies setting foot in Southeast Asia.

KISIA, an alliance of security companies, recently signed a memorandum of understanding with Indonesia’s Universitas Siber Asia (UNSIA) to train local information security personnel.

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