[Click eStock] "RaonSecure, the Right Time for Growth"

Revenue Growth Despite Industry Slump
Expansion Expected in Digital ID and Penetration Testing Businesses

Despite a sluggish security industry in the first half of this year, RaonSecure managed to increase its revenue. There are expectations that growth will continue in the second half as demand for security solutions rises.

On the 19th, Yuanta Securities provided this analysis of RaonSecure. In the second quarter of this year, the company recorded sales of 13.9 billion KRW, up 9% year-on-year, but continued to post an operating loss of 800 million KRW.

In the first half of the year, consecutive political events in Korea led to a reduction in information security budgets in the public sector, resulting in an off-season for the security industry. Nevertheless, RaonSecure’s continued revenue growth is considered significant. Compared to the previous year, revenue from zero trust-related integrated access management increased by 50%, and WhiteHat Consulting, which conducts penetration testing, saw a 40% increase.

However, the company continued to post losses due to investments in research and development (R&D) to prepare for the future, including cloud security, post-quantum cryptography, and the global expansion of mobile ID solutions.

Growth is expected to accelerate in the second half of the year. In the area of biometric authentication, the introduction of MFA (multi-factor authentication) is increasing among securities firms in Japan, following incidents of unauthorized access and transactions in online securities accounts. RaonSecure’s "TouchEn OnePass" service is a cloud solution that provides fingerprint, iris, voice, and facial recognition functions to companies and institutions adopting biometric authentication. Through contracts with Japanese companies such as SBI Group affiliates, the number of monthly active users (MAU) in Japan now exceeds 8 million.

The company is also expected to benefit from growing domestic and international demand for digital IDs. Since July 23, mobile IDs can be issued through private sector apps such as Naver, Kakao, and Toss. As usage grows, RaonSecure’s OmniOneCX (a mobile ID verification solution and integrated authentication service) is expected to see further growth. Internationally, following a project in Indonesia last year, the company is now pursuing digital ID projects in Costa Rica this year, with plans to expand into Asia, Central and South America, and Europe.

WhiteHat Consulting, which specializes in penetration testing, already saw a 40% year-on-year increase in second-quarter revenue. As attacks targeting domestic companies, such as the hacking of SK Telecom, continue, the industry as a whole is expected to grow.

Kwon Myungjun, a researcher at Yuanta Securities, stated, "In the second half of this year, penetration testing services are expected to expand from large corporations to mid-sized and small businesses. RaonSecure is well-positioned to provide premium penetration testing and also has capabilities in subscription-based penetration testing, so it is expected to benefit substantially."

This content was produced with the assistance of AI translation services.