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Gov’t boosts convergence security

Many electronics manufacturers are jumping into IT convergence markets using Internet of Things (IoT) technology. Samsung Electronics recently indicated that smart home service will be its next-generation profit generator.

In response to the trend, the Science Ministry yesterday announced creation of a 700 million won ($672,107) fund to nurture companies in the convergence security industry.

Companies can apply for grants of up to 70 percent of a project, or 200 million won.

Large security companies, which usually are affiliates of conglomerates, can receive government support for no more than 50 percent of a proposed project’s budget.

The Korea Internet Security Agency (KISA) will be responsible for selecting security companies with solutions related to industries that are susceptible to security breaches, such as point-of-sale devices at retail stores and ATMs at banks, or related to future IoT technologies.

The ministry is interested in technologies that are targeted to smart home services, which was a 6.9 trillion won market last year, about 12 percent larger than the previous year, according to the Korea Association of Smart Home.

Medical security and smart cars are two other significant markets.

However, the local security solution market is relatively small compared to the need.

The entire security market was 5.5 trillion won last year, while convergence security accounted for only 4 percent. Ninety-two percent of the market consists of small and midsize companies, with not much of a presence by conglomerates.

“The convergence security market in Korea is almost nonexistent, whereas security systems between IT devices and network servers are well equipped,” said an assistant director from the Science Ministry’s information security department.

“There are no security solutions in the market that also are compatible with interfaces of non-IT devices, such as cars and televisions.”

The world convergence security industry was estimated to be about $141 billion last year, according to the IT analytics company IDC.

BY KIM JI-YOON [jiyoon.kim@joongang.co.kr]