Korean firms’ surveillance cameras are gaining traction in global markets like the United States and Europe. Commonly referred to as CCTV, these surveillance cameras are witnessing a surge in installations not just in streets and subway stations, but also in various urban settings such as military installations, government agencies, research institutions, schools, apartments, and commercial buildings. However, as Chinese companies like Hikvision and Dahua Technology capture the global market with competitive pricing, major nations concerned about cybersecurity risks are shunning Chinese-made products, turning to Korean alternatives.
Since 2019, the U.S. has enforced the National Defense Authorization Act (NDAA), prohibiting government agencies from procuring Chinese telecommunications and video security equipment, which includes sanctions on surveillance cameras alongside Huawei. Subsequently, President Biden signed the Secure Equipment Act of 2021, completely banning the import of Chinese video security equipment. The United Kingdom (2022) and Australia (2023) have also opted to remove Chinese video equipment from their critical infrastructure.
As a result, Hanwha Vision, Korea’s leading surveillance camera manufacturer, witnessed its sales surpassing 1 trillion won in 2022, up from 580.1 billion won in 2019, achieving 1 trillion won in sales for two consecutive years until last year. Last year’s operating profit reached a record high of 153.3 billion won. The global market share increased from 7% in 2018 to 9% last year, propelling it from 4th to 3rd place. Revenue from the U.S., which stood at 43.8% in 2019, surged to 59% last year. IDIS, Korea’s second-largest player in the domestic market, is also aggressively targeting the U.S., evident from its acquisition of Costar Technology, a supplier of surveillance cameras to U.S. public facilities.
However, it is estimated that Chinese products dominate the Korean market. According to data from Statistics Korea, approximately 19.6 million surveillance cameras were installed across Korea as of 2022, with 1,607,388 installed in public institutions. In the private sector, it is estimated that 40-50% of surveillance cameras used in buildings, apartments, and private residences originate from China.
Although Korean public institutions have exclusively used products from Korean small and medium-sized enterprises since 2007, some industry players are reportedly importing Chinese core components and supplying them after reassembly. An industry insider said, “Public institutions adhere to the lowest bid principle, and some firms secure bids by importing Chinese mainboards and cameras for reassembly or by simply swapping labels for lower prices.”
A representative from a security firm countered, “Even if Chinese components are utilized, we develop and use our proprietary software. Since March last year, public institutions have been mandated to procure products certified by the Telecommunications Technology Association (TTA), thus mitigating hacking risks.”
The concerns about Chinese components in Korean public institutions’ products extend to broader cybersecurity risks. Professor Lim Jong-in from Korea University’s School of Cybersecurity warned, “Hacking through hardware is plausible. Last year, ‘spy chips’ were discovered in Chinese-made weather monitoring equipment purchased by Korean governmental organizations.” He added, “Software outsourcing to China and Vietnam is also common. After initially providing trouble-free software, backdoors can be inserted during version updates, facilitating hacking attempts.”
Furthermore, surveillance camera installations in Korea are on the rise, expanding beyond traditional roles into AI-driven capabilities for object recognition. Market projections suggest substantial growth, from 3.8 trillion won in 2020 to 5.5 trillion won by 2027.
