[Click eStock] "Union Biometrics Expands Market Share in the 158 Trillion Won Biometric Industry"

On September 3, independent research firm ValueFinder analyzed that Union Biometrics is expanding its presence in the global market with its biometric access terminals, driving the company's growth.

Lee Chungheon, a researcher at ValueFinder, stated, "Union Biometrics was founded in 2000 and listed on the KOSDAQ market in 2016. The company develops access solutions based on biometric identification. By manufacturing and supplying biometric terminals such as facial, iris, and fingerprint recognition devices, Union Biometrics is regarded as one of the top two companies in Korea in this field, alongside Suprema."

He further explained, "The global biometric market is projected to reach $113.4 billion (approximately 158 trillion won) by 2032, with a compound annual growth rate (CAGR) of 15.2%. Penetration of biometric solutions remains low in overseas markets such as the United States and Japan, indicating significant growth potential."

In the first half of this year, the company recorded 24.7 billion won in revenue and 500 million won in operating profit, driven by increased ODM (original design manufacturing) sales for NEC Corporation of Japan and higher sales of facial recognition terminals. Over the past four years, annual revenue has grown by an average of 13.3%. Profitability has also improved, thanks to a higher export ratio, increased sales of high-value-added products, improved product mix, and operating leverage effects.

Union Biometrics' overseas expansion is also becoming more visible. The company secured an order for 2,400 units of biometric access control systems from Kuwait Oil Company (KOC). The supplied products include the UBio-X Face Premium, which features artificial intelligence (AI)-powered facial recognition technology, as well as fingerprint recognition modules. The total contract period is five years, and installation at all KOC sites is scheduled to be completed by the end of this year.

Union Biometrics secured NEC of Japan as a client and began developing and supplying dedicated biometric terminals for NEC on an ODM basis starting in November last year. The company is targeting 3 billion won in NEC-related sales this year and aims to exceed 10 billion won by 2027.

Researcher Lee added, "With the acquisition of a patent for recognizing canine nose patterns (nasal prints), the company is expected to establish a leading position in the pet market. In August, the Ministry of Science and ICT designated the AI-based nasal print recognition pet registration service as the 'First ICT Regulatory Sandbox.'"

Meanwhile, from 2017 to 2025, the company implemented shareholder return policies totaling 14.5 billion won, including 5.6 billion won in cash dividends and 8.9 billion won in share buybacks. In January last year, the company also canceled 600,000 treasury shares for the first time.