LG Uplus announced on August 4 that it has acquired the domestic managed detection and response (MDR) company Pagonetworks. This acquisition aims to enhance the company's overall security framework and strengthen its competitiveness in the corporate security sector.
MDR services monitor a company's security environment 24/7, detecting, analyzing, and responding to threats. Unlike traditional security solutions that focus primarily on threat detection, MDR features specialized personnel who analyze and respond to actual security events. This allows companies to reduce the burden of hiring security staff while establishing a higher level of security.
According to LG Uplus, Pagonetworks is recognized as a leader in the MDR sector within the domestic cybersecurity market. The company operates various detection rules and response processes based on its self-developed security operation platform, DeepACT. It provides MDR services to clients across various industries, including finance, IT, and manufacturing. As of last year, Pagonetworks had approximately 27 employees.
With the capabilities gained from this acquisition, LG Uplus plans to build an integrated security system that encompasses authentication, network, monitoring, and threat response. This will also facilitate the expansion of its security business targeting corporate clients. However, the company did not disclose the investment scale or shareholding details related to the acquisition. A representative from LG Uplus stated, "It is difficult to disclose the investment scale and shareholding due to confidentiality agreements between the two companies."
This strategy is significant as it marks LG Uplus's first merger and acquisition (M&A) aimed at solidifying its security growth strategy. Previously, CEO Hong Beom-sik emphasized the importance of security, quality, and safety as the three core principles of the company, highlighting the need for growth based on customer trust.
Kwon Yong-hyun, Vice President of LG Uplus's Enterprise Division, remarked, "This acquisition is a decision to provide more comprehensive security services to corporate clients while elevating LG Uplus's security response capabilities. We will continue to invest in security and enhance our capabilities to establish ourselves as a trusted security partner for our customers."
Meanwhile, the domestic security market is rapidly expanding. The South Korean cybersecurity market is projected to grow from $2.89 billion (approximately 4.16 trillion won) in 2025 to $9.89 billion (approximately 14.26 trillion won) by 2034, with an average annual growth rate of 14.7%.
* This article has been translated by AI.
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