LG Uplus has acquired a security services company to bolster its security competitiveness.
On the 4th, LG Uplus announced it had acquired 'Pagone Networks,' a domestic professional firm specializing in managed detection and response (MDR) security services. This marks the first M&A (mergers and acquisitions) since the acquisition of LG HelloVision in 2019, occurring approximately seven years later.
Pagone Networks is recognized as a leading security company in South Korea's cybersecurity market within the managed detection and response (MDR) sector. Based on its self-developed security operations platform 'DeepACT,' the firm operates various detection rules and response processes, providing MDR services to clients across diverse industries including finance, manufacturing, and IT. It has also expanded into seven countries in Southeast Asia, including Malaysia and the Philippines.
MDR is a service that monitors corporate security environments 24 hours a day to detect threats such as hacking and anomalies, analyze malware, and respond accordingly. While existing security solutions focused primarily on providing threat detection capabilities, MDR is distinguished by having professional personnel analyze actual security events and carry out responses. Companies can reduce the burden of securing security personnel while simultaneously building a higher-level security system. Given the growing trend of technological advancement in recent years, such as automated attacks like 'miToss AI,' demand for MDR services is expected to rise.
Especially in AI data centers (DCs) where thousands of servers operate continuously, strengthening security through such MDR services is essential. LG Uplus is currently establishing a 200MW (megawatt) scale AI DC in Paju, Gyeonggi Province, and is also treating AI DC operations as a new growth driver.
Through this acquisition, LG Uplus plans to build an integrated security system covering authentication, network, monitoring, and threat response, while also expanding its B2B (business-to-business) security business. Previously, LG Uplus has been providing 'U+ Premium Security Monitoring' for enterprises, the integrated authentication service 'AlphaKey' based on post-quantum cryptography (PQC), and cloud-based security services such as 'U+SASE.'
This acquisition of Pagone Networks aligns with Hong Beom-sik, LG Uplus CEO's initiative to strengthen security. He has consistently emphasized security capabilities as a core element of AI competitiveness by presenting the 'Secure AI' strategy at MWC26, which focuses on strengthening security across AI services, data, and infrastructure. At MWC25, he introduced the concept of 'Assured Intelligence.'
Industry observers note that LG Uplus has taken preemptive steps to strengthen security, as punitive fines are now imposed in cases of personal information leaks due to hacking. Although LG Uplus was not directly involved in last year's hacking incidents affecting mobile carriers, it was referred for investigation by the Personal Information Protection Commission on charges of obstructing official duties, including server disposal.
Kwon Yong-hyun, Executive Vice President and Head of LG Uplus Enterprise Division, stated, "We will continue to invest in security and strengthen our capabilities to establish ourselves as a trusted security partner for customers."
Meanwhile, according to global market research firm DeepMarketInsight, the global cybersecurity market is projected to grow from $260.6 billion (approximately 375 trillion won) in 2025 to $916.9 billion (approximately 1,322 trillion won) by 2034.
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