The explosion of business to business (B2B) e-commerce and Internet ventures is expanding the information security solutions market, industry sources said.
The online security market is forecast to double to 200 billion won this year if the current online fever continues unchecked.
To capitalize on the sudden boom, security solution providers are scrambling to form a consortium to achieve economies of scale and link up with foreign partners.
Fueling the drive is rising demand from state-run agencies, financial institutions, cyber apartment complexes and Internet data centers.
Currently, government organizations and financial outfits make up a big chunk of security solution customers but the trend is likely to change in the second half of this year when cyber apartment and Internet data centers will put up online security measures.
Security solution developers are expecting demand from cyber apartment complexes to take off around June when the government finalizes specific security standards and regulations.
Although new entrants are debuting with innovative solutions, the so-called first generation of security providers is faring well with the biggest market share.
Future System Co., a leader in the VPN (virtual private network) field offering multimedia networks for corporate clients, scored a turnover of 3.5 billion won in the first quarter.
The company is expected to make around 35 billion won in total revenue this year on the strength of the rising demand for VPNs from government organizations.
SecureSoft, a pioneer in system security solutions, earned 6.4 billion won from its security consulting and package sales.
Dr Ahn's Anti-Virus Laboratories Inc., well known for its V3 anti-virus software lineup, jacked up its revenue for the first quarter to 3.3 billion won, six times bigger than that of latecomer Hauri Co.
The first-generation companies are boosting their standing and brand recognition through KOSDAQ listing or direct investment from overseas partners.
Meantime, password and CA (certification authority) providers stand out in the e-commerce security market, where shopping malls and online banking operators need a reliable protection system for their Web services.
SoftForum ranked top in password certification, generating around 3 billion won in the first three months of this year. The company installed the certification systems at major commercial banks and Internet sites.
Initech, the second biggest firm in password certification solutions, had a turnover of 2.1 billion won in the same period. The firm recently strengthened its sales network and formed an alliance with RSA Security.
Penta Security System came in third with 1.4 billion. The venture company owns both password certification and network security solutions.
Security solution startups such as Coconut and CyberPatrol are also expected to perform strongly in the second quarter when the security service market is forecast to take off.
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