Daedong Begins Establishing Cybersecurity System to Comply with EU CRA
Strategy to Expand in the European Agricultural Machinery Market
Proactive Establishment of a New Cybersecurity System by Q1 2027
On September 18, Daedong announced that it has begun establishing a security system to comply with the Cyber Resilience Act (CRA) of the European Union (EU).
The CRA is a new regulation that will mandate security requirements for most digital products sold in Europe starting in December 2027. It requires companies to manage security risks before product launch, provide security updates, report security incidents, and submit a Software Bill of Materials (SBOM). Non-compliance may result in severe penalties, including fines of up to 15 million euros or 2.5% of global revenue, whichever is higher, as well as sales bans and market withdrawal. As such, this is a core system that must be adhered to in order to conduct business in Europe.
Daedong has proactively taken measures to address these changes and accelerate its efforts to expand in the European agricultural machinery market. The company conducted a tractor security vulnerability analysis through PESCARO, a vehicle integrated security platform company, and plans to strengthen the security of its products within this year by introducing a cybersecurity-focused controller. In addition, Daedong aims to establish a dedicated cybersecurity IT infrastructure to automate cybersecurity work processes, manage security assets, implement software configuration management (SBOM), and build a vehicle security threat management (field monitoring) system. The company plans to secure comprehensive security management capabilities throughout the product lifecycle by the first quarter of 2027.
This security system for CRA compliance will be applied primarily to tractor models that Daedong currently supplies to the European market. Since export models for Europe are equipped with, or will soon incorporate, a variety of advanced technologies such as remote diagnostics, management, and autonomous driving, technical measures to meet the security standards required by the CRA are essential. Daedong intends to use this CRA compliance initiative as an opportunity to internalize its cybersecurity capabilities and will continue to make ongoing improvements and inspections to actively respond to evolving global security regulations.
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Na Youngjung, Head of P.Biz Development at Daedong, stated, "The CRA is not an option but a necessity for manufacturers preparing to enter the European market. By establishing a security system that meets global standards, we will not only enhance product reliability but also further strengthen our brand competitiveness within the European market."
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