Cybersecurity solution corporations SecuLetter secured new investment. The plan is to use the funds to drive business expansion and sales growth and to lead up to the resumption of transactions.
SecuLetter said on the 27th that it had raised a 3 billion won investment from the "SecuLetter Investment Association."
SecuLetter listed on the KOSDAQ market in Aug. 2023, but transactions were halted in Apr. 2024, about seven months later, after receiving a disclaimer of opinion. After that, the Securities and Futures Commission also imposed sanctions for reasons such as violations of accounting standards and obstruction of external audits. The issue was the timing of revenue recognition for reflecting sales in the financial statements.
SecuLetter has been given a remediation period through the end of Apr. this year and is making every 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 and is 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 superiority and the potential to preempt 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, the General Insurance Association of Korea's Silson24, and the 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 in investments from KT, Woori Bank, KDB Industrial Bank, and Riyadh Valley Company (RVC), a Saudi Arabian state-run institution.
A company official said, "The issues caused by past sales recognition errors have been addressed by hiring relevant specialists and assigning them to those duties," and added, "Along with this fundraising, we will also newly recruit personnel related to new sales and secure funds for the company's development to be reborn as corporations recognized in global markets at home and abroad."
The official added, "This fundraising not only recognizes the company's technological capabilities, but is also the result of systematic preparations for the resumption of transactions, including formal requirements, substantive requirements, and the securing of in-house specialists."