South Korea Cybersecurity for Retail Market

The South Korea cybersecurity for retail market, valued at USD 6.2 billion, grows due to increasing cyber threats, digital payments, and e-commerce adoption.

Region:Asia

Author(s):Rebecca

Product Code:KRAB1724

Pages:82

Published On:October 2025

About the Report

Base Year 2024

South Korea Cybersecurity for Retail Market Overview

  • The South Korea Cybersecurity for Retail Market is valued at USD 6.2 billion, based on a five-year historical analysis. This growth is primarily driven by the increasing frequency and sophistication of cyberattacks targeting retail businesses, the rapid adoption of digital payment systems, and the expansion of e-commerce platforms. Retailers are investing heavily in cybersecurity solutions to protect sensitive customer data, maintain consumer trust, and comply with evolving regulatory requirements.
  • Seoul, as the capital and largest city, dominates the market due to its high concentration of retail businesses and advanced technological infrastructure. Busan and Incheon also contribute significantly to market growth, driven by their expanding retail sectors and heightened awareness of cybersecurity threats among local businesses.
  • The Personal Information Protection Act (PIPA), amended and enforced by the Ministry of the Interior and Safety in 2023, mandates strict guidelines for data protection and privacy. The Act requires retail businesses to implement robust cybersecurity measures, including encryption, access controls, and breach notification protocols, to ensure the protection of consumer information and compliance with national standards.
South Korea Cybersecurity for Retail Market Size

South Korea Cybersecurity for Retail Market Segmentation

By Solution Type:The solution type segmentation includes Network Security, Application Security, Endpoint Security, Cloud Security, Data Security, Identity and Access Management, Infrastructure Protection, Integrated Risk Management, and Other Solutions. Network Security remains the leading subsegment, reflecting the urgent need for advanced defenses against unauthorized access, ransomware, and other cyber threats. Retailers prioritize network security to safeguard critical systems and customer data, while cloud security and application security are also experiencing accelerated adoption due to the shift toward cloud-based retail operations and mobile commerce.

South Korea Cybersecurity for Retail Market segmentation by Solution Type.

By Service Type:The service type segmentation encompasses Professional Services and Managed Security Services. Managed Security Services is the dominant subsegment, as retailers increasingly outsource cybersecurity operations to specialized providers for 24×7 monitoring, incident response, and compliance management. This trend is driven by the complexity of evolving threats, talent shortages, and the need for continuous protection across digital channels.

South Korea Cybersecurity for Retail Market segmentation by Service Type.

South Korea Cybersecurity for Retail Market Competitive Landscape

The South Korea Cybersecurity for Retail Market is characterized by a dynamic mix of regional and international players. Leading participants such as Samsung SDS, SK Infosec, LG CNS, Hanwha Vision, AhnLab, SoftCamp, Penta Security Systems, NSHC, INCA Internet, S-1 Corporation, Duzon Bizon, SecuLetter, CyberOne, TmaxSoft, Trend Micro contribute to innovation, geographic expansion, and service delivery in this space.

Samsung SDS

1985

Seoul, South Korea

SK Infosec

2000

Seoul, South Korea

LG CNS

1987

Seoul, South Korea

AhnLab

1995

Seoul, South Korea

Trend Micro

1988

Tokyo, Japan

Company

Establishment Year

Headquarters

Group Size (Large, Medium, or Small as per industry convention)

Revenue Growth Rate (Retail Cybersecurity Segment)

Number of Retail Clients

Market Share in Retail Cybersecurity

Average Deal Size (Retail Sector)

Customer Retention Rate (Retail Clients)

South Korea Cybersecurity for Retail Market Industry Analysis

Growth Drivers

  • Increasing Cyber Threats:The South Korean retail sector has witnessed a significant rise in cyber threats, with reported incidents increasing by 30% from the previous year to the current year. The Korea Internet & Security Agency (KISA) reported over 1,200 cyberattacks targeting retail businesses in the current year alone. This alarming trend has prompted retailers to invest heavily in cybersecurity measures, with expenditures projected to reach approximately KRW 1.5 trillion (USD 1.1 billion) in the future, reflecting a growing awareness of the need for robust security solutions.
  • Regulatory Compliance Requirements:South Korea's stringent regulatory landscape, including the Personal Information Protection Act (PIPA), mandates that retailers implement comprehensive cybersecurity measures. As of the future, over 70% of retail companies are expected to allocate at least 5% of their IT budgets to compliance-related cybersecurity initiatives. This regulatory pressure is driving investments in advanced security technologies, with the market for compliance solutions projected to grow to KRW 600 billion (USD 450 million) by the end of the future, underscoring the importance of adherence to legal standards.
  • Rising E-commerce Transactions:The surge in e-commerce transactions, which reached KRW 200 trillion (USD 150 billion) in the current year, has significantly increased the demand for cybersecurity solutions in the retail sector. With online sales expected to grow by 15% annually, retailers are prioritizing cybersecurity to protect sensitive customer data. In the future, it is estimated that e-commerce platforms will invest over KRW 800 billion (USD 600 million) in cybersecurity measures, reflecting the critical need to safeguard digital transactions and maintain consumer trust.

Market Challenges

  • High Implementation Costs:The financial burden of implementing comprehensive cybersecurity solutions poses a significant challenge for South Korean retailers. Initial setup costs for advanced security systems can exceed KRW 300 million (USD 200,000) per establishment, which is prohibitive for many small to medium-sized enterprises (SMEs). As a result, approximately 40% of SMEs are currently underinvesting in necessary cybersecurity measures, leaving them vulnerable to attacks and regulatory penalties, which could further exacerbate their financial strain.
  • Lack of Skilled Workforce:The cybersecurity sector in South Korea faces a critical shortage of skilled professionals, with an estimated deficit of over 50,000 cybersecurity experts as of the current year. This gap hampers the ability of retail businesses to effectively implement and manage security protocols. The Ministry of Science and ICT has reported that only 20% of retail companies have adequate in-house cybersecurity teams, leading to reliance on external consultants, which can increase operational costs and complicate security management.

South Korea Cybersecurity for Retail Market Future Outlook

The South Korean cybersecurity landscape for retail is poised for transformative growth, driven by technological advancements and increasing regulatory scrutiny. As retailers adopt AI and machine learning technologies, the ability to predict and mitigate cyber threats will enhance significantly. Furthermore, the shift towards managed security services will allow businesses to focus on core operations while outsourcing cybersecurity needs. This evolving environment will foster innovation and collaboration, ultimately leading to a more secure retail ecosystem in South Korea.

Market Opportunities

  • Growth in Cloud Security Solutions:The increasing adoption of cloud-based services in retail presents a significant opportunity for cybersecurity providers. With cloud security spending expected to reach KRW 400 billion (USD 300 million) in the future, retailers are seeking solutions that ensure data integrity and compliance, driving demand for innovative security technologies tailored for cloud environments.
  • Expansion of IoT Devices in Retail:The proliferation of IoT devices in retail, projected to exceed 1 billion units in the future, creates new vulnerabilities that require specialized cybersecurity solutions. Retailers are expected to invest over KRW 200 billion (USD 150 million) in IoT security measures, highlighting the need for comprehensive strategies to protect interconnected systems and customer data from potential breaches.

Scope of the Report

SegmentSub-Segments
By Solution Type

Network Security

Application Security

Endpoint Security

Cloud Security

Data Security

Identity and Access Management

Infrastructure Protection

Integrated Risk Management

Other Solutions

By Service Type

Professional Services

Managed Security Services

By Deployment Mode

On-Premises

Cloud-Based

Hybrid

By Organization Size

Large Enterprises

Small and Medium Enterprises (SMEs)

By End-User Vertical

Retail Chains

E-commerce Platforms

Brick-and-Mortar Stores

Specialty Retail

By Region

Seoul

Busan

Incheon

Others

By Compliance Requirement

PCI DSS Compliance

Personal Information Protection Act (PIPA)

ISO 27001 Certification

Others

Key Target Audience

Investors and Venture Capitalist Firms

Government and Regulatory Bodies (e.g., Korea Internet & Security Agency, Ministry of Science and ICT)

Retail Chain Operators

Cybersecurity Solution Providers

Payment Processing Companies

Insurance Companies Specializing in Cyber Risk

Industry Associations (e.g., Korea Retail Association)

Telecommunications Companies

Players Mentioned in the Report:

Samsung SDS

SK Infosec

LG CNS

Hanwha Vision

AhnLab

SoftCamp

Penta Security Systems

NSHC

INCA Internet

S-1 Corporation

Duzon Bizon

SecuLetter

CyberOne

TmaxSoft

Trend Micro

Table of Contents

Market Assessment Phase

1. Executive Summary and Approach


2. South Korea Cybersecurity for Retail Market Overview

2.1 Key Insights and Strategic Recommendations

2.2 South Korea Cybersecurity for Retail Market Overview

2.3 Definition and Scope

2.4 Evolution of Market Ecosystem

2.5 Timeline of Key Regulatory Milestones

2.6 Value Chain & Stakeholder Mapping

2.7 Business Cycle Analysis

2.8 Policy & Incentive Landscape


3. South Korea Cybersecurity for Retail Market Analysis

3.1 Growth Drivers

3.1.1 Increasing Cyber Threats
3.1.2 Regulatory Compliance Requirements
3.1.3 Rising E-commerce Transactions
3.1.4 Demand for Data Protection Solutions

3.2 Market Challenges

3.2.1 High Implementation Costs
3.2.2 Lack of Skilled Workforce
3.2.3 Rapidly Evolving Threat Landscape
3.2.4 Integration with Legacy Systems

3.3 Market Opportunities

3.3.1 Growth in Cloud Security Solutions
3.3.2 Expansion of IoT Devices in Retail
3.3.3 Increased Investment in Cybersecurity Startups
3.3.4 Partnerships with Technology Providers

3.4 Market Trends

3.4.1 Adoption of AI and Machine Learning
3.4.2 Shift Towards Managed Security Services
3.4.3 Focus on Customer Data Privacy
3.4.4 Emergence of Cyber Insurance

3.5 Government Regulation

3.5.1 Personal Information Protection Act (PIPA)
3.5.2 Cybersecurity Management Act
3.5.3 Electronic Financial Transactions Act
3.5.4 Act on Promotion of Information and Communications Network Utilization and Information Protection

4. SWOT Analysis


5. Stakeholder Analysis


6. Porter's Five Forces Analysis


7. South Korea Cybersecurity for Retail Market Market Size, 2019-2024

7.1 By Value

7.2 By Volume

7.3 By Average Selling Price


8. South Korea Cybersecurity for Retail Market Segmentation

8.1 By Solution Type

8.1.1 Network Security
8.1.2 Application Security
8.1.3 Endpoint Security
8.1.4 Cloud Security
8.1.5 Data Security
8.1.6 Identity and Access Management
8.1.7 Infrastructure Protection
8.1.8 Integrated Risk Management
8.1.9 Other Solutions

8.2 By Service Type

8.2.1 Professional Services
8.2.2 Managed Security Services

8.3 By Deployment Mode

8.3.1 On-Premises
8.3.2 Cloud-Based
8.3.3 Hybrid

8.4 By Organization Size

8.4.1 Large Enterprises
8.4.2 Small and Medium Enterprises (SMEs)

8.5 By End-User Vertical

8.5.1 Retail Chains
8.5.2 E-commerce Platforms
8.5.3 Brick-and-Mortar Stores
8.5.4 Specialty Retail

8.6 By Region

8.6.1 Seoul
8.6.2 Busan
8.6.3 Incheon
8.6.4 Others

8.7 By Compliance Requirement

8.7.1 PCI DSS Compliance
8.7.2 Personal Information Protection Act (PIPA)
8.7.3 ISO 27001 Certification
8.7.4 Others

9. South Korea Cybersecurity for Retail Market Competitive Analysis

9.1 Market Share of Key Players

9.2 KPIs for Cross Comparison of Key Players

9.2.1 Company Name
9.2.2 Group Size (Large, Medium, or Small as per industry convention)
9.2.3 Revenue Growth Rate (Retail Cybersecurity Segment)
9.2.4 Number of Retail Clients
9.2.5 Market Share in Retail Cybersecurity
9.2.6 Average Deal Size (Retail Sector)
9.2.7 Customer Retention Rate (Retail Clients)
9.2.8 Time to Detect and Respond (Mean Time to Detect/Respond)
9.2.9 SLA Compliance Rate
9.2.10 Customer Satisfaction Score (Retail Sector)
9.2.11 Number of New Retail Clients Acquired
9.2.12 R&D Investment as % of Revenue

9.3 SWOT Analysis of Top Players

9.4 Pricing Analysis

9.5 Detailed Profile of Major Companies

9.5.1 Samsung SDS
9.5.2 SK Infosec
9.5.3 LG CNS
9.5.4 Hanwha Vision
9.5.5 AhnLab
9.5.6 SoftCamp
9.5.7 Penta Security Systems
9.5.8 NSHC
9.5.9 INCA Internet
9.5.10 S-1 Corporation
9.5.11 Duzon Bizon
9.5.12 SecuLetter
9.5.13 CyberOne
9.5.14 TmaxSoft
9.5.15 Trend Micro

10. South Korea Cybersecurity for Retail Market End-User Analysis

10.1 Procurement Behavior of Key Ministries

10.1.1 Ministry of Trade, Industry and Energy
10.1.2 Ministry of Science and ICT
10.1.3 Ministry of Interior and Safety

10.2 Corporate Spend on Infrastructure & Energy

10.2.1 Investment in Cybersecurity Infrastructure
10.2.2 Budget Allocation for IT Security
10.2.3 Expenditure on Training and Development

10.3 Pain Point Analysis by End-User Category

10.3.1 Data Breaches
10.3.2 Compliance Challenges
10.3.3 Integration Issues

10.4 User Readiness for Adoption

10.4.1 Awareness of Cybersecurity Risks
10.4.2 Willingness to Invest in Solutions
10.4.3 Training Needs

10.5 Post-Deployment ROI and Use Case Expansion

10.5.1 Measurement of Security Effectiveness
10.5.2 Expansion of Security Solutions
10.5.3 Long-term Cost Savings

11. South Korea Cybersecurity for Retail Market Future Size, 2025-2030

11.1 By Value

11.2 By Volume

11.3 By Average Selling Price


Go-To-Market Strategy Phase

1. Whitespace Analysis + Business Model Canvas

1.1 Market Gaps Identification

1.2 Value Proposition Development

1.3 Revenue Streams Analysis

1.4 Customer Segmentation

1.5 Key Partnerships

1.6 Cost Structure

1.7 Channels of Distribution


2. Marketing and Positioning Recommendations

2.1 Branding Strategies

2.2 Product USPs

2.3 Target Audience Identification

2.4 Communication Strategy


3. Distribution Plan

3.1 Urban Retail Strategies

3.2 Rural NGO Tie-ups

3.3 Online Distribution Channels

3.4 Partnerships with Local Retailers


4. Channel & Pricing Gaps

4.1 Underserved Routes

4.2 Pricing Bands Analysis

4.3 Competitor Pricing Comparison


5. Unmet Demand & Latent Needs

5.1 Category Gaps

5.2 Consumer Segments Analysis

5.3 Emerging Trends Identification


6. Customer Relationship

6.1 Loyalty Programs

6.2 After-sales Service

6.3 Customer Feedback Mechanisms


7. Value Proposition

7.1 Sustainability Initiatives

7.2 Integrated Supply Chains

7.3 Unique Selling Points


8. Key Activities

8.1 Regulatory Compliance

8.2 Branding Efforts

8.3 Distribution Setup


9. Entry Strategy Evaluation

9.1 Domestic Market Entry Strategy

9.1.1 Product Mix Considerations
9.1.2 Pricing Band Strategy
9.1.3 Packaging Options

9.2 Export Entry Strategy

9.2.1 Target Countries
9.2.2 Compliance Roadmap

10. Entry Mode Assessment

10.1 Joint Ventures

10.2 Greenfield Investments

10.3 Mergers & Acquisitions

10.4 Distributor Model


11. Capital and Timeline Estimation

11.1 Capital Requirements

11.2 Timelines for Implementation


12. Control vs Risk Trade-Off

12.1 Ownership Considerations

12.2 Partnerships Evaluation


13. Profitability Outlook

13.1 Breakeven Analysis

13.2 Long-term Sustainability


14. Potential Partner List

14.1 Distributors

14.2 Joint Ventures

14.3 Acquisition Targets


15. Execution Roadmap

15.1 Phased Plan for Market Entry

15.1.1 Market Setup
15.1.2 Market Entry
15.1.3 Growth Acceleration
15.1.4 Scale & Stabilize

15.2 Key Activities and Milestones

15.2.1 Milestone Planning
15.2.2 Activity Tracking

Research Methodology

ApproachModellingSample

Phase 1: Approach1

Desk Research

  • Analysis of government cybersecurity regulations and compliance frameworks specific to the retail sector in South Korea
  • Review of industry reports and white papers from cybersecurity firms focusing on retail market trends
  • Examination of academic journals and publications on cybersecurity threats and solutions in the retail industry

Primary Research

  • Interviews with IT security managers at leading retail chains to understand current cybersecurity practices
  • Surveys with cybersecurity consultants specializing in retail to gather insights on emerging threats and solutions
  • Focus groups with retail executives to discuss challenges and strategies in cybersecurity implementation

Validation & Triangulation

  • Cross-validation of findings through comparison with global cybersecurity trends and benchmarks
  • Triangulation of data from interviews, surveys, and desk research to ensure consistency and reliability
  • Sanity checks through expert panel reviews involving cybersecurity specialists and retail industry veterans

Phase 2: Market Size Estimation1

Top-down Assessment

  • Estimation of the overall retail market size in South Korea and its allocation to cybersecurity spending
  • Analysis of government and private sector investments in cybersecurity initiatives within the retail sector
  • Incorporation of growth rates from related sectors such as e-commerce and digital payments

Bottom-up Modeling

  • Collection of data on cybersecurity budgets from a sample of retail companies across various sizes
  • Estimation of costs associated with cybersecurity tools, services, and personnel in the retail sector
  • Volume x cost analysis based on the number of retail transactions and associated cybersecurity needs

Forecasting & Scenario Analysis

  • Multi-factor regression analysis incorporating factors such as digital transformation and increasing cyber threats
  • Scenario modeling based on potential regulatory changes and shifts in consumer behavior towards online shopping
  • Development of baseline, optimistic, and pessimistic forecasts for cybersecurity spending in retail through 2030

Phase 3: CATI Sample Composition1

Scope Item/SegmentSample SizeTarget Respondent Profiles
Cybersecurity Practices in Large Retail Chains60IT Security Managers, Chief Information Officers
Small to Medium Retailer Cybersecurity Strategies50Operations Managers, IT Directors
Impact of Cyber Threats on Retail Operations40Risk Management Officers, Compliance Managers
Investment in Cybersecurity Solutions45Procurement Officers, Financial Analysts
Consumer Perception of Retail Cybersecurity55Marketing Managers, Customer Experience Directors

Frequently Asked Questions

What is the current value of the South Korea Cybersecurity for Retail Market?

The South Korea Cybersecurity for Retail Market is valued at approximately USD 6.2 billion, reflecting significant growth driven by increasing cyber threats, the adoption of digital payment systems, and the expansion of e-commerce platforms.

What are the main drivers of growth in the South Korea Cybersecurity for Retail Market?

Which cities in South Korea are leading in cybersecurity for retail?

What is the Personal Information Protection Act (PIPA) and its impact on retail cybersecurity?

Other Regional/Country Reports

Other Adjacent Reports

Germany E-commerce Security Market

Mexico Cloud Security Solutions Market

Thailand Endpoint Protection Market

US Network Security Market

South Africa Data Privacy Software Market

Ksa Managed Security Services Market Size, Share, Growth Drivers, Trends, Opportunities & Forecast 2025–2030USA IoT Security Market Outlook to 2030

Mexico AI-Driven Threat Detection Market

South Africa Payment Gateway Security Market

Brazil Retail Analytics Market

Why Buy From Us?

Refine Robust Result (RRR) Framework
Refine Robust Result (RRR) Framework

What makes us stand out is that our consultants follow Robust, Refine and Result (RRR) methodology. Robust for clear definitions, approaches and sanity checking, Refine for differentiating respondents' facts and opinions, and Result for presenting data with story.

Our Reach Is Unmatched
Our Reach Is Unmatched

We have set a benchmark in the industry by offering our clients with syndicated and customized market research reports featuring coverage of entire market as well as meticulous research and analyst insights.

Shifting the Research Paradigm
Shifting the Research Paradigm

While we don't replace traditional research, we flip the method upside down. Our dual approach of Top Bottom & Bottom Top ensures quality deliverable by not just verifying company fundamentals but also looking at the sector and macroeconomic factors.

More Insights-Better Decisions
More Insights-Better Decisions

With one step in the future, our research team constantly tries to show you the bigger picture. We help with some of the tough questions you may encounter along the way: How is the industry positioned? Best marketing channel? KPI's of competitors? By aligning every element, we help maximize success.

Transparency and Trust
Transparency and Trust

Our report gives you instant access to the answers and sources that other companies might choose to hide. We elaborate each steps of research methodology we have used and showcase you the sample size to earn your trust.

Round the Clock Support
Round the Clock Support

If you need any support, we are here! We pride ourselves on universe strength, data quality, and quick, friendly, and professional service.

Why Clients Choose Us?

400000+
Reports in repository
150+
Consulting projects a year
100+
Analysts
8000+
Client Queries in 2022