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Security Services and Products-ROK

Security Services and Products

Republic of Korea

Overview

2004 2005 2006 (estimated)

Total Market Size 2,063 1,964 2,134

Total Local Production 865 838 911

Total Exports N/A N/A N/A

Total Imports 1,123 1,069 1,158

(Unit: USD million)

(Source: The above statistics are unofficial estimates by CS Korea. The total market size includes services and equipment. Statistics for local production and import data do not include security services.)

[ USD1= 1,200 Won (2004), 1,100Won (2005), 950Won (2006)]

In 2006, the overall size of Korea’s security industry, including equipment and services, was estimated to be USD2.1 billion. Provision of security guard services continued to account for over 50 percent of the total security market following by leased and installed security equipment, which accounted for 25 percent of the market. Security devices took a 15 percent share. In 2006, the size of the security industry market increased by around 10%. In that year, airports and ports started to replace existing security systems while large private companies showed increasing interest in installing integrated security systems. The security industry is projected to grow by an average of 10 percent per year for the next few years.

Total imports of security equipment and related products in 2006 were estimated at USD1.2 billion. U.S. firms are the major suppliers of airport and port security equipment, which includes X-ray scanning systems, computerized tomography X-rays, metal detectors, hand-held detectors and explosive trace detectors. Total imports of airport and port security equipment in 2006 were estimated at USD617.5 million. U.S. imports accounted for 25 percent at USD154 million. CS Korea expects that U.S. imports will maintain a steady market share in Korea’s import security industry for the foreseeable future.

Best Products/Services

- Simulation chambers for passenger baggage and cargo

- Walk-through visitor surveillance systems

- Drug/explosive product detect/analyzing systems

- Explosives detection security systems integration for ports and airports

Opportunities

The local security industry’s technology level lags behind that of advanced countries, especially in the area of providing high-end security solutions to meet end-user requirements. As a result, the industry’s major Korean players, who are also systems integrators, are seeking opportunities to develop top-notch technology in cooperation with foreign companies.

Government agencies are end-users for integrated systems for security devices. In particular, airports, ports, and customs offices are seeking advanced integrated security systems devices. U.S. companies have a larger share of the Korean market for X-ray detection systems and container inspection systems than European and Japanese firms. U.S. systems, certified by the Transportation Security Administration (TSA) and the Federal Aviation Administration (FAA), should have growing market opportunities in Korea due to confidence in the quality of systems with these certifications. U.S. companies are encouraged to monitor government procurement plans and establish consortia with prime Korean contractors in systems integration.

Resources

Trade Shows

SecuWorld 2007 (Annual)

www.secuepxo.com

Korea International Safety & Security Exhibition

www.KISS21C.org

Key Contacts

Civil Aviation Safety Authority

www.casa.go.kr

Incheon International Airport Corporation (IIAC)

www.airport.or.kr

Korea Fire Equipment Inspection Corporation