South Korea 5G Network Security Market - Forecasts From 2025 To 2030

Report CodeKSI061618059
PublishedOct, 2025

Description

The South Korea 5G Network Security Market is expected to grow at a CAGR of 22.14%, reaching USD 789.8773 million in 2030 from USD 290.64 million in 2025.

South Korea 5G Network Security Market Key Highlights

  • Mandated Security Investment: Major telecom operators (SK Telecom, KT, and LG Uplus) publicly committed over KRW 2.4 trillion (approx. $1.7 billion) in combined, five-year cybersecurity investments following regulatory enforcement actions, directly creating a sustained demand influx for advanced security solutions.
  • Regulatory Zero Trust Imperative: The Personal Information Protection Commission (PIPC) and National Intelligence Service (NIS) regulations, coupled with high-profile data breaches, compel operators and public institutions to accelerate migration from perimeter-based defense to Zero Trust Architecture (ZTA).
  • Supply Chain Diversification Demand: Geopolitical pressures concerning 5G equipment from certain foreign vendors are driving increased security scrutiny and diversification efforts by local carriers, specifically boosting demand for domestically developed Radio Access Network (RAN) and Core Network security solutions.
  • AI-Driven Defense Integration: South Korean security firms are rapidly integrating proprietary AI models into their platforms, exemplified by the launch of new AI-powered Extended Detection and Response (XDR) solutions, which directly address the complexity and volume of threats inherent in dense 5G networks.

The South Korean 5G Network Security Market has transitioned from a proactive technological investment cycle to a reactive, regulation-driven security spending imperative. The initial commercial launch of the world's first nationwide 5G network in April 2019 by operators like SK Telecom, KT, and LG Uplus established a massive, high-speed infrastructure. However, the subsequent expansion into mission-critical sectors such as autonomous vehicles, smart factories, and defense, coupled with high-profile cyber incidents, exposed significant vulnerabilities within the foundational network architecture. This confluence of rapid technological deployment and operational security failure mandates a fundamental overhaul of defense mechanisms across the entire 5G stack, particularly within core networks and customer-facing service layers. This market, therefore, is currently propelled by an immediate need for verifiable compliance and robust, next-generation solutions that can address the highly distributed, cloud-native nature of 5G systems.

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South Korea 5G Network Security Market Analysis

Growth Drivers

The primary growth driver is the mandatory regulatory and operational response to catastrophic security failures. Specifically, the regulatory enforcement action against a major mobile operator in 2025, which highlighted lapses in basic access control and segmentation, directly fueled a multi-billion-won commitment by all three major carriers for information protection and Zero Trust implementation. This shift creates direct, non-discretionary demand for Identity & Access Management (IAM), Network Encryption/VPNs, and Security Analytics & Monitoring tools necessary to segment core and internal networks and enforce continuous verification. Furthermore, the convergence of 5G with emerging applications like autonomous mobility and AI-driven services, backed by the Ministry of Science and ICT's (MSIT) K-Network 2030 program, accelerates the demand for robust, low-latency Edge/MEC Security solutions that can secure highly distributed computing environments outside the traditional data center perimeter.

Challenges and Opportunities

The most significant challenge constraining immediate implementation is the severe national shortage of senior cloud and cyber-talent capable of architecting and operating sophisticated 5G security environments, particularly those involving complex zero-trust frameworks. This shortage directly elevates the demand for Managed Security Services (MSS) and automated Security Analytics platforms that minimize reliance on scarce human expertise. An opportunity arises from the national push for greater digital sovereignty and domestic capability building. With the 5G Security Council conducting checks on 5G base stations from foreign vendors, local security firms possess a clear competitive advantage to supply trusted, indigenously developed solutions for RAN and Core networks. This dynamic creates a concentrated opportunity for Korean vendors to increase their market share in high-value, critical infrastructure security that would otherwise be dominated by established foreign equipment suppliers.

Supply Chain Analysis

The 5G network security supply chain is characterized by a dual dependency: a global reliance on a few dominant international equipment vendors (Samsung, Nokia, Ericsson, Huawei) for core network hardware and RAN infrastructure, and a growing dependency on specialized domestic and international software vendors for the actual security layers. Production hubs are globally dispersed, creating logistical complexities and exposure to geopolitical tensions. South Korea's three major mobile carriers utilize a mix of these foreign and domestic suppliers, a factor that complicates the implementation of uniform security standards and assurance protocols. This environment elevates the demand for security-by-design from the foundational hardware level. Moreover, the necessity for high-assurance, quantum-resistant encryption on 5G signalling and user planes—as evidenced by recent operator testing—introduces a new dependency on advanced cryptographic research and subsequent hardware/software module supply chains.

Government Regulations

The regulatory environment is a primary market catalyst, converting security best practices into mandatory compliance spending.

Jurisdiction Key Regulation / Agency Market Impact Analysis
South Korea Personal Information Protection Act (PIPA) / PIPC Mandatory enforcement of robust data security standards, particularly on data handlers, directly driving high-volume demand for data encryption, access control (IAM), and advanced security analytics platforms to detect breaches and ensure compliance with stringent breach notification requirements.
South Korea Regulations on Cybersecurity Services (Presidential Decree No. 34287, Mar. 5, 2024) / NIS Centralizes cybersecurity authority and emphasizes information sharing for national security interests. This formalization mandates public institutions to adopt certified security services and creates a stable, long-term buyer base for validated, domestic security technology and managed services.
South Korea Ministry of Science and ICT (MSIT) / 5G Security Council Council's security checks on 5G Base Stations (RAN) from domestic and foreign manufacturers enforce minimum-security functional requirements, directly driving demand for RAN Security audit/testing services and vendor compliance improvements across the Radio Access Network segment.

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In-Depth Segment Analysis

By Network Architecture: RAN Security

The Radio Access Network (RAN) Security segment experiences considerable growth driven by the densification of 5G networks and the inherent security risks associated with a greater number of deployed Base Stations (gNBs). Unlike previous generations, 5G RAN is increasingly software-defined and virtualized, extending the attack surface beyond physical infrastructure to the control plane. The requirement is specifically created by the 5G Security Council's mandate to conduct security checks on Base Station equipment supplied by major vendors. This regulatory oversight forces carriers to invest in solutions for verifying configuration integrity, ensuring secure communication between gNBs and the core network, and implementing enhanced authentication mechanisms for all network elements. The growing use of Open RAN architectures, while not yet fully mature, introduces further complexity, requiring a new class of multi-vendor security solutions to secure interfaces and manage virtualized network functions (VNFs) at the edge, a demand gap local firms are actively addressing.

By End-user: Telecom Operators

The Telecom Operators segment—comprising SK Telecom, KT Corporation, and LG Uplus—is the single largest and most immediate driver of security market expenditure. Their necessity is uniquely motivated by an operational crisis and subsequent regulatory penalties. Following a major data breach investigation, which cited management laxity and fundamental security failure in the core network (e.g., operating internal, core, and internet networks as a single entity), two major carriers publicly committed to multi-year, multi-billion-won security transformation programs. This unprecedented capital allocation creates a direct demand pull for enterprise-scale Zero Trust solutions, massive investment in Security Analytics & Monitoring to detect unauthorized network activity logs, and a rapid overhaul of the security architecture to enforce strict network slicing and Identity & Access Management (IAM). The imperative is not merely protection but a demonstrable, verifiable transformation of their security posture to meet regulatory and customer trust requirements.

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Competitive Environment and Analysis

The competitive landscape in South Korea’s 5G network security market is bifurcated, featuring domestic specialists dominating endpoint/application security and global giants leading the network infrastructure and high-end core security platforms. Domestic firms leverage their deep understanding of local compliance and government procurement requirements, while international players offer global-scale, carrier-grade network equipment security features. Strategic positioning involves domestic firms integrating AI/ML for threat intelligence and global firms leveraging established relationships with carriers from their long-standing hardware supply contracts.

SK Telecom

SK Telecom's strategic positioning has pivoted from being a pure network operator to a technology-driven AI company, with its security strategy now centered on rebuilding customer trust after a major security incident. Its key product/service strategy is the Information Protection Innovation Plan, which is a Zero Trust-based architecture overhaul backed by a massive KRW 700 billion investment over five years. A specific product initiative demonstrating its commitment is the rapid deployment of Fraud Detection System (FDS) 2.0, an advanced multi-authentication system that cross-references SIM card and device characteristics to prevent cloning, and the testing of Post-Quantum Cryptography in collaboration with international partners to secure 5G networks against future threats.

AhnLab

AhnLab is a dominant South Korean security software and service provider, strategically focusing on leveraging its decades of domestic threat intelligence and AI capabilities. Its positioning centers on providing comprehensive, cross-domain security for both IT and Operational Technology (OT), an increasingly critical requirement for industrial 5G networks. A key product launch underscoring this strategy is the proprietary AI platform, 'AhnLab AI PLUS', a core component of its future security portfolio. Furthermore, the company expanded its global capacity and reach by establishing a joint venture with Saudi Arabian Information Technology Company (SITE) in 2024, designed to export its advanced security solutions, including XDR and a suite of network security products, demonstrating a capacity addition strategy.

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Recent Market Developments

April 2025: AhnLab Launches Proprietary AI Platform 'AhnLab AI PLUS'

AhnLab announced the launch of its proprietary AI-driven security platform, 'AhnLab AI PLUS'. This development represents a capacity addition in the firm's technological stack, integrating in-house AI technology with its established security expertise. The platform is intended to power new and existing solutions, enhancing detection and response capabilities against complex threats, directly impacting the demand for sophisticated Security Analytics and Threat Detection and Response (TDR) solutions across the 5G ecosystem.

May 2025: SK Telecom Deploys Fraud Detection System (FDS) 2.0

In response to a major security incident, SK Telecom deployed its enhanced Fraud Detection System (FDS) 2.0. This product launch focuses on advanced multi-authentication and cross-referencing unique SIM and device characteristics to prevent cloning and unauthorized access. The rapid, operational launch of FDS 2.0 was part of the 'Customer Assurance Package' within the operator’s wider information protection plan, serving as a critical new layer of security to directly secure the 5G subscriber identity and access domain.

April 2024: AhnLab Establishes Joint Venture with Saudi Arabian SITE

AhnLab signed an agreement to form a joint venture with Saudi Arabian Information Technology Company (SITE), alongside an investment by SITE Ventures, acquiring a 10% stake in AhnLab for KRW 74.4 billion. This strategic capacity addition aims to expand AhnLab’s cybersecurity business, particularly its XDR and network security solutions, into the Middle East and North Africa, providing a new revenue stream and validating the firm's portfolio on a global scale.

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South Korea 5G Network Security Market Segmentation

  • BY SOLUTIONS/SERVICES
    • Solutions
      • Firewalls & Threat Protection
      • DDoS Protection
      • Identity & Access Management (IAM)
      • Network Encryption & VPNs
      • Security Analytics & Monitoring
      • Cloud Security & Virtualization Security
    • Services
      • Managed Security Services (MSS)
      • Consulting & Integration
      • Security Testing & Compliance
  • BY DEPLOYMENT
    • On-Premise
    • Cloud-Based
  • BY NETWORK ARCHITECTURE
    • 5G Security
    • RAN Security
    • Edge/MEC Security
    • Transport Network Security
  • BY END USER
    • Telecom Operators
    • Government & Defense Networks
    • Enterprise 5G Networks

Table Of Contents

1. EXECUTIVE SUMMARY

2. MARKET SNAPSHOT

2.1. Market Overview

2.2. Market Definition

2.3. Scope of the Study

2.4. Market Segmentation

3. BUSINESS LANDSCAPE

3.1. Market Drivers

3.2. Market Restraints

3.3. Market Opportunities

3.4. Porter's Five Forces Analysis

3.5. Industry Value Chain Analysis

3.6. Policies and Regulations

3.7. Strategic Recommendations

4. TECHNOLOGICAL OUTLOOK

5. SOUTH KOREA 5G NETWORK SECURITY MARKET BY SOLUTIONS/SERVICES

5.1. Introduction

5.2. Solutions

5.2.1. Firewalls & Threat Protection

5.2.2. DDoS Protection

5.2.3. Identity & Access Management (IAM)

5.2.4. Network Encryption & VPNs

5.2.5. Security Analytics & Monitoring

5.2.6. Cloud Security & Virtualization Security

5.3. Services

5.3.1. Managed Security Services (MSS)

5.3.2. Consulting & Integration

5.3.3. Security Testing & Compliance

6. SOUTH KOREA 5G NETWORK SECURITY MARKET BY DEPLOYMENT

6.1. Introduction

6.2. On-Premise

6.3. Cloud-Based

7. SOUTH KOREA 5G NETWORK SECURITY MARKET BY NETWORK ARCHITECTURE

7.1. Introduction

7.2. 5G Security

7.3. RAN Security

7.4. Edge/MEC Security

7.5. Transport Network Security

8. SOUTH KOREA 5G NETWORK SECURITY MARKET BY END USER

8.1. Introduction

8.2. Telecom Operators

8.3. Government & Defense Networks

8.4. Enterprise 5G Networks

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Market Share Analysis

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Competitive Dashboard

10. COMPANY PROFILES

10.1. SK Telecom

10.2. KT Corporation

10.3. LG Uplus

10.4. AhnLab

10.5. Penta Security

10.6. A10 Networks

10.7. Akamai Technologies

10.8. Check Point Software

10.9. Cisco Systems

10.10. Allot Communications

10.11. Palo Alto Networks

10.12. Fortinet

10.13. Ericsson

11. RESEARCH METHODOLOGY

LIST OF FIGURES

LIST OF TABLES

Companies Profiled

SK Telecom

KT Corporation

LG Uplus

AhnLab

Penta Security

A10 Networks

Akamai Technologies

Check Point Software

Cisco Systems

Allot Communications

Palo Alto Networks

Fortinet

Ericsson

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