How Much Do Major S. Korean Firms Invest in Cybersecurity?
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Synopsis
South Korea's corporate giants are significantly increasing their cybersecurity investments, averaging $2.1 million annually. Recent reports expose the alarming vulnerabilities that many firms face, despite this increase. With top companies like Samsung and KT leading the charge, the industry is under pressure to bolster security measures.
Key Takeaways
- S. Korean companies average $2.1 million annually on cybersecurity.
- Samsung leads with significant investments.
- Many firms face serious cybersecurity vulnerabilities.
- Government mandates require disclosure of spending.
- Investment in cybersecurity is rising but needs effective implementation.
Seoul, May 26 (NationPress) The prominent companies of South Korea are allocating an average of 2.9 billion won (approximately $2.1 million) annually towards cybersecurity, as indicated by recent industry data released on Monday.
Based on findings from the Korea Internet & Security Agency (KISA) and additional sources, ten local corporations each invested over 100 billion won in information security in the last three years.
Samsung Electronics Co. led the expenditure, with a total investment of 712.6 billion won from 2021 to 2023, followed by the telecom giant KT Corp., which committed 327.4 billion won during the same timeframe, according to reports from Yonhap news agency.
SK Telecom Co., South Korea's largest mobile network operator that recently faced a significant data breach, ranked third with 251.5 billion won in investments.
Other notable companies within the top ten include Coupang Inc., SK hynix Inc., LG Uplus Corp., Samsung SDS Co., Woori Bank, Naver Corp., and LG Electronics Inc.
In 2022, the South Korean government mandated that firms managing network infrastructure or achieving annual sales exceeding 300 billion won publicly disclose their cybersecurity expenses.
A total of 746 companies reported their information security expenditures for 2023, contributing a combined 2.1 trillion won, an increase from 1.5 trillion won by 658 firms in 2021.
The average yearly spending per company rose by 24.5 percent, from 2.3 billion won in 2021 to 2.9 billion won in 2023.
However, experts caution that numerous South Korean companies remain significantly susceptible to cyberattacks due to comparatively inadequate security measures, as indicated by the report.
"In terms of investment, most companies in Korea possess far weaker security capabilities compared to SK Telecom, which was the latest target of a cyberattack," noted an industry insider.
"Many are more susceptible to sophisticated hacking methods, and some might have already been compromised without their knowledge. Companies must remain vigilant and undergo comprehensive security evaluations,” the insider further advised.
Point of View
It is evident that while South Korean firms are markedly increasing their cybersecurity budgets, the persistent vulnerabilities pose a significant concern. The government’s mandate for transparency in cybersecurity spending underscores the urgency for firms to reassess their security frameworks. It is essential for companies to not only invest but also to ensure these investments translate into robust defenses against evolving cyber threats.
NationPress
27/07/2025
Frequently Asked Questions
What is the average annual cybersecurity investment by South Korean companies?
Major South Korean companies are spending an average of 2.9 billion won (approximately $2.1 million) annually on cybersecurity.
Which company spent the most on cybersecurity?
Samsung Electronics Co. topped the list with an investment of 712.6 billion won from 2021 to 2023.
Why are South Korean firms vulnerable to cyberattacks?
Experts indicate that many South Korean firms have relatively weak security capabilities, making them susceptible to advanced hacking techniques.
How many companies disclosed their cybersecurity spending?
A total of 746 companies reported their cybersecurity expenditures for 2023.
What is the government's role in cybersecurity investment?
The South Korean government requires companies generating over 300 billion won in annual sales to disclose their cybersecurity investments.
