Cybersecurity solution corporations SecuLetter secured new investment. It plans to use the funds to drive business expansion and revenue growth, leading up to the resumption of transactions.
SecuLetter said on the 27th that it raised an investment of 3 billion won from the "SecuLetter Investment Association."
SecuLetter listed on the KOSDAQ market in Aug. 2023, but trading was suspended in Apr. 2024, about seven months later, after it received a disclaimer of opinion. The Securities and Futures Commission later imposed sanctions for reasons including violations of accounting standards and obstruction of external audits. The issue was a difference in the timing of revenue recognition reflected in the financial statements.
SecuLetter has been granted a remediation period until the end of Apr. this year and is making an all-out effort to resume transactions. This investment follows a paid-in capital increase of 1.1 billion won at the end of last year.
SecuLetter plans to use this investment to expand its business under the "National Network Security Framework (N2SF)" regime. N2SF is a concept officially released by the National Intelligence Service in Sept. last year, a system that replaces the existing network separation framework.
SecuLetter already has the core technologies required by N2SF. SecuLetter's proprietary technology that detects and blocks malware hidden in non-executable files is becoming more important in the N2SF environment. SecuLetter assessed that this investment reflects investors' confidence in such technological advantages and the potential to secure a first-mover position in the market.
Based on this, SecuLetter has built a broad track record of supply, ranging from major public institutions such as the Ministry of Culture, Sports and Tourism, Insurance Development Institute Silson24, and National Health Insurance Service to the financial sector, including Korea Investment & Securities Co., KB Securities, and BNK Busan Bank.
Since its founding in 2015, SecuLetter has raised a cumulative total of about 20 billion won from KT, Woori Bank, KDB Industrial Bank, and Riyadh Valley Company (RVC), a Saudi Arabian state-run institution.
A company official said, "We have hired relevant specialists and assigned them to the tasks to address issues arising from past revenue recognition errors," adding, "Along with this fundraising, we will secure capital for the company's growth and newly recruit personnel related to new revenue, transforming into a corporations recognized in domestic and global markets."
The official added, "This investment fundraising not only recognizes the company's technological prowess, but is also the result of systematic preparation for the resumption of transactions, including formal and substantive requirements and securing in-house specialists."