Three corporations in physical security successfully achieved growth in the first half of this year. This is because stable demand continued, centered around security services. These corporations have a significant proportion of revenue from traditional physical security, but they are enhancing technology to secure a foundation for future growth due to the potential growth of artificial intelligence (AI) CCTV.
According to the security industry on the 28th, S-1 recorded sales of 1.4068 trillion won and operating profit of 116.6 billion won in the first half. These figures represent increases of 3.6% and 15.3%, respectively, compared to the same period last year. A balanced growth across all business sectors drove the performance. The physical security sector generated 702.2 billion won in sales, growing 3.3% compared to the same period last year. The infrastructure sector, responsible for managing building security systems and integrated contracts, also saw sales rise by 3.5% to 799.8 billion won compared to the same period last year.
SK Shieldus posted sales of 1.0492 trillion won and operating profit of 54.2 billion won in the first half. While sales increased by 9.0% compared to the same period last year, operating profit declined by 12.1%. However, SK Shieldus explained that the decrease in operating profit was temporarily affected by one-time expenses for establishing growth plans by business and investments for business expansion. Domestic sales increased by 9.8% to 1.0029 trillion won. Product sales reached 121.9 billion won, while service sales recorded 927.3 billion won, an increase of 22% and 7.5%, respectively, compared to the same period last year.
KT Telecop, although smaller in sales volume, exhibited remarkable growth rates. The company's first-half sales reached 293.7 billion won, with operating profit of 18.1 billion won, increasing by 11.8% and 84%, respectively, compared to the same period last year. In a business structure where security services account for 99.4% of sales, revenue from the security service, additional products, and facility management sections rose by 12% to 291.8 billion won compared to the previous year. The decrease in some operating expenses like installation costs, advertising, and sales promotion also impacted the results.
All three corporations in physical security mainly focus on traditional security services such as security services for businesses and institutions, access control, and facility management. These security services are essential and remain stable regardless of economic downturns, making the demand largely unaffected. Consequently, these corporations have secured a stable revenue base. They are now pushing forward the advancement of physical security through AI technology-integrated CCTV solutions. Recently, there has been a growing trend towards mandatory installation of CCTV, with the intention of improving performance through AI CCTV.
In fact, S-1 is detecting risk factors such as signs of school violence, fire hazards, and safety helmet violations in industrial sites by analyzing movement and situations in real-time through its AI CCTV solution, 'SVMS.' The real-time alert service communicates the situation to administrators to minimize damage. SK Shieldus is expanding its business scope with AI-based residential security services. Its flagship product, the AI CCTV-based Caps Home, provides real-time monitoring at the front door and offers 24-hour emergency response services, targeting single-person households.
KT Telecop supports operational efficiency improvements for client companies through its fire detection solution, 'EV-Safer', which utilizes AI CCTV. This system detects fire signs in real-time to respond, aiming to reduce reliance on on-site personnel and enhance management efficiency. KT Telecop also plans to target the AI-based digital care service market in collaboration with the senior care specialized company 'Waplat.'
A security industry official noted, 'Traditional physical security services, like corporate security and access control, have a steady demand that ensures stable performances, even during economic downturns,' adding, 'However, the paradigm is shifting now from 'preventive security' to 'proactive security,' and AI CCTV is emerging not merely as an additional service but as a vital source influencing the future of the industry.'