Sunday, 17 January 2021

SK Telecom merging security subsidiaries to dominate local market

by Harry Baldock, Total Telecom
Friday 27 November 20

The operator is merging its physical and IT security subsidies, hoping to make use of 5G and AI to be a market leader in security services

South Korea’s SK Telecom has announced the merger of two of its security-based subsidiaries, ADT Caps and SK Infosec, hoping to take the new company public and ultimately more further into overseas markets.    Once combined, the new entity will likely dominate the South Korean market…

South Korea’s SK Telecom has announced the merger of two of its security-based subsidiaries, ADT Caps and SK Infosec, hoping to take the new company public and ultimately more further into overseas markets. 

 

Once combined, the new entity will likely dominate the South Korean market; SK Infosec is already the largest IT security company in the country, while ADT Caps is the second largest physical security company, with over 700,000 subscribers.

 

“Through the merger of SK Infosec and ADT Caps, we will lead the future convergence security industry by developing innovative security services and platforms, and accelerate our growth as a global ICT company,” said SK Telecom’s CEO and President Park Jung-ho.

 

SK Telecom says that the newly merged business will be worth around 5 trillion Korean won (around $4.5 billion) within three years, combining the operator's 5G and AI-powered cybersecurity services with ADT’s monitoring and control system and physical assets. 

 

The new security company will also have a major focus on making full use of the IoT to help secure enterprises, offering a network of intelligent security cameras and biometrics.

 

In the short term, SK Telecom hopes to take the company public, as well as exporting its converged security products overseas, particularly throughout Southeast Asia. SK Telecom has already been doing this on a smaller scale for some time, most recently signing a deal to provide cyber security solutions and consulting services in Myanmar, as well as having a strong relationship with Vingroup in Vietnam.

 

SK Telecom says the move to consolidate their security businesses could be completed as early as March.

 

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