[Edaily Reporter Yun Junghoon ]LG Uplus(032640)is significantly strengthening its enterprise-wide cybersecurity response capabilities by acquiring a domestic cybersecurity firm.

LGU+ announced on the 4th that it has acquired “Pago Networks,” a domestic provider specializing in Managed Detection & Response (MDR) services. The company’s strategy is to internalize Pago Networks’ threat detection, analysis, and response capabilities to enhance its own security framework while boosting its competitiveness in the B2B (business-to-business) security sector.

LGU+ did not disclose the acquisition price or the size of its stake. However, considering the disclosure standards for listed companies with total assets of 2 trillion won or more (2.5% of equity), the transaction is estimated to be less than approximately 226.7 billion won.

Internalizing “24-Hour Threat Response” MDR… Securing Proactive Response Capabilities

With the recent acceleration of digital transformation (DX) among companies, cyberattacks are becoming increasingly sophisticated and advanced. As the limitations of implementing standalone security solutions have become clear, “Managed Detection and Response (MDR),” which provides a comprehensive range of services from real-time detection to response, has emerged as the next-generation security trend.

MDR is a service that preemptively detects threats through 24-hour monitoring, with specialized personnel handling the actual response. Its key advantage is that it allows companies to maintain a high level of security while reducing the burden of securing in-house security personnel compared to traditional solutions.

Pago Networks, recently acquired by LG Corp., is a leader in South Korea’s MDR sector. Based on its proprietary security operations platform, “DeepACT,” the company provides services to various industries, including finance, manufacturing, and IT, and has recently expanded its reach to seven countries in Southeast Asia.

LGU+ plans to integrate the threat intelligence (TI) and response know-how accumulated through MDR operations to strengthen its data-driven, proactive threat response system.

The Booming Security Market… The First Step in Fleshing Out the ‘Secure AI’ Strategy

According to global market research firm DeepMarketInsights, the global cybersecurity market is projected to grow rapidly from $260.6 billion (approximately 375 trillion won) in 2025 to $916.9 billion (approximately 1,322 trillion won) by 2034. During the same period, the domestic market is also expected to grow at an average annual rate of 14.7%, surpassing the 14 trillion won mark.

With this acquisition, LGU+ plans to combine MDR with its existing quantum-resistant cryptography (PQC)-based authentication service “Alpha Key” and cloud security service “U+SASE,” positioning itself as an “integrated security solutions provider” that covers everything from deployment to operation and incident response.

In particular, this M&A is significant as it marks the first tangible result of LGU+’s security-centric growth strategy. Since taking office, LGU+ President Hong Beom-sik has emphasized “security, quality, and safety” as the company’s three core pillars, and at this year’s MWC, he announced the “Secure AI” strategy to strengthen security across AI services, data, and infrastructure.

Kwon Yong-hyun, Head of the Enterprise Division (Executive Vice President) at LG Uplus, stated, “This acquisition is a decision aimed at providing corporate customers with more comprehensive security services while simultaneously elevating LG Uplus’s security response capabilities to the next level.” He added, “We will continue to invest in security and strengthen our capabilities to establish ourselves as a security partner that customers can trust.”