[Stock of the Week] Genian: Defending Against Cyber Threats

The Era of AI: Cybersecurity Becomes Even More Critical
Securing Growth Momentum Through Overseas Expansion

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With the advent of generative artificial intelligence (AI) and large language models (LLMs), it has become easier than ever to write ransomware code. Now, even individuals without technical expertise can carry out ransomware attacks. The scale and scope of cyberattacks are also expanding. According to cybersecurity firm Cybersecurity Ventures, global damages from cyberattacks this year are expected to exceed 1 quadrillion won. Oh Hyunjin, a researcher at Kiwoom Securities, explained, "Even in Korea, where investments in cybersecurity have traditionally lagged, there is now a clear trend of increased investment, particularly among telecommunications companies. The three major telecom operators in Korea have announced plans to invest approximately 2.4 trillion won over the next five years."

The Age of AI: Cybersecurity Becomes Even More Critical

As the importance of cybersecurity grows, the growth rate of cybersecurity firm Genian is accelerating. Genian is one of the most prominent cybersecurity companies in the era of AI software. The company develops proactive prevention and response solutions for increasingly sophisticated and intelligent cyber threats such as hacking and ransomware. It offers "Network Access Control (NAC)" solutions that protect internal corporate networks, as well as "Endpoint Detection and Response (EDR)" solutions that monitor user behavior and PCs to detect and respond to unknown threats. As of last year, Genian had more than 3,000 NAC customers and 198 EDR customers, the highest numbers in Korea. Its market share in the public sector is 75% for NAC and 49% for EDR. Genian also provides Zero Trust Network Access (ZTNA) solutions to protect various network environments, including cloud and remote setups.

Since its founding in 2005, Genian has posted profits for 20 consecutive years, up to last year. From 2005 to 2024, it achieved a compound annual growth rate (CAGR) of 23.9% in sales, steadily expanding its business. Last year, the company reported sales of 49.6 billion won and operating profit of 9.8 billion won, up 15.7% and 52.2% year-on-year, respectively.

This upward trend in sales continued in the first half of this year. Cumulative sales for the first half reached 20.8 billion won, with operating profit at 1.1 billion won. Sales increased by 10.1% compared to the same period last year. Demand for security solutions is rising, especially in the private sector, leading to higher sales. More companies are adopting NAC solutions. A series of major hacking incidents, both domestically and internationally, have highlighted the need for substantial security investments not only in the private sector but also in public institutions.

Jung Wonseok, a researcher at Shin Young Securities, analyzed, "The Ministry of Science and ICT recently proposed the adoption of security solutions such as EDR as a measure to prevent the recurrence of information leakage incidents. Strengthening security for AI networks is becoming an increasingly important issue in the AI industry."

In fact, market interest in Genian's EDR solution is growing, and more organizations are actively considering its adoption. EDR is a solution that detects and responds to all abnormal signals occurring on endpoints. Unlike antivirus software, which only responds to known malicious codes stored in a database, EDR can defend against a wide range of security attacks. Genian was the first to develop EDR in Korea and mainly supplies on-premises products installed within corporate systems.

Kwon Myungjun, a researcher at Yuanta Securities, stated, "EDR is gaining attention as a basic cybersecurity option. With a series of large-scale hacking incidents, demand for strengthening security systems is expected to increase from the second half of this year." He added, "Genian is the top choice among major Korean companies."

Based on its core solutions-NAC, EDR, and ZTNA-Genian has strengthened its competitiveness by flexibly responding to diverse security needs in both private and public sectors. The company is also enhancing its customized security service capabilities, steadily expanding its customer base.

Securing Growth Drivers Through Overseas Expansion

Overseas expansion is another key driver of Genian's growth. The company established a U.S. subsidiary in 2016 and opened a new office in Dubai, United Arab Emirates (UAE), in October last year. Genian is expanding its business footprint from the Middle East to Europe and Africa. It has secured 63 partners in 36 countries worldwide. Genian is the only company in the Asia-Pacific region to be listed in the "Gartner NAC Market Guide" for three consecutive years, demonstrating its international competitiveness.

From July 1 to 3, Genian showcased its security solutions at "CYDES 2025," held at the Putrajaya International Convention Centre in Malaysia. CYDES is a cybersecurity event hosted by Malaysia's National Security Council (NSC) and has established itself as a central platform for cybersecurity cooperation in the Asia-Pacific region. Genian was the only Korean company to participate.

Genian is actively pursuing entry into the Asia-Pacific (APAC) market. It has secured a diverse customer base in Singapore, Thailand, Malaysia, Indonesia, and other countries, including public, financial, and private sectors. The company is also consistently conducting roadshows, collaborating with local partners, and engaging in joint marketing activities in the region.

In May, Genian also participated in the Gulf Information Security Expo & Conference (GISEC) held at the Dubai World Trade Centre. GISEC is the leading information security exhibition in the Middle East, attracting about 25,000 visitors from over 160 countries. The event is directly organized by the UAE Cybersecurity Council and is highly significant both industrially and politically. In the Middle East, where there is a strong push to build independent security environments, there is considerable interest in Genian's on-premises EDR solution. Genian is currently carrying out a government-funded project to develop a managed cybersecurity system and framework tailored for the Middle Eastern market.

The Korea Exchange selected Genian as a "2025 KOSDAQ Rising Star," taking into account its overseas growth potential, technological innovation, and financial stability. Genian has been named to this list for three consecutive years-2023, 2024, and now 2025-demonstrating its sustained growth and reliability in the capital market.