Korean network security firm WINS grow 8.5% on increasing 5G capex

Korea’s value chain behind 5G network is rapidly growing amid faster-than-expected migration to the next-gen wireless technology in the world’s most connected society.

The country’s science ministry has newly allocated 5 billion won ($4.2 million) for next year to strengthen 5G security and help boost the transition to 5G from 4G.

According to a reported from the ministry and the Korea Information Security Industry Association, the local network security market came to 708.9 billion won last year, up 8.47 percent from 2017. And the industry will see a further growth through this year and next year.

Among network security equipment, an intrusion prevention system (IPS) receives the most attention in the market as it is an essential component in the deployment of 5G networks. The IPS market is estimated to be valued at 110 billion won, but the market size will dramatically grow along with commercialization of 5G services. Autonomous driving and smart factories that rely on high-speed communication are expected to fuel demand for IPS.

WINS, an IPS-specified Korean company, is expected to be one of the companies that benefit most. WINS accounts for about 45 percent of the local IPS market, with the remaining share represented by foreign companies. Cisco and McAfee are biggest rivals to WINS.

The security control room of WINS, a Korean network security company in Pangyo, Gyeonggi, seen in this picture taken on Tuesday. [Photo by WINS]

The industry expects WINS to grow faster as investments in 5G security networks increase. IPS requires performance improvement for a higher-speed network, and 100G products are expected to meet market requirements in the 5G setting. Thanks to its high-performance, high-margin 100G products, WINS saw its operating profit jump by 70.4 percent to 2.6 billion won in the first half of this year.

Since 2006, WINS has provided IPS products for LTE to LG Uplus and SK Broadband. KT is also its customer since 2005.

The company’s exports to Japan reached 5.8 billion won in the first six months this year, a 300 percent jump from a year ago, which was driven by massive 5G investments in the country ahead of the 2020 Tokyo Olympics.

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