Daekyo CNS acquires Handreamnet to expand into AI, cybersecurity

Daekyo CNS, the IT services arm of Daekyo Group, has acquired Handreamnet, a network security specialist. The deal marks the education-focused conglomerate's latest push to expand into non-education businesses centered on AI and cybersecurity.

Daekyo CNS said the acquisition would allow it to enter the fast-growing information security market, add security capabilities to its existing IT services, and secure a new growth engine spanning AI and cybersecurity.

Handreamnet is a first-generation security venture credited with developing the world's first network security switch. The company supplies its proprietary MDS (Multi-Dimension Security) engine-based security switches and network security solutions to more than 40,000 sites across 12 countries, serving public institutions, financial firms and corporations.

Daekyo CNS said the acquisition would allow it to bring intelligent network security technology in-house and upgrade its business portfolio. With demand for security rising alongside the spread of AI and cloud environments, the company plans to combine Handreamnet's security technology with its own IT service capabilities to expand into new businesses including intelligent security solutions and managed security services.

Daekyo CNS also plans to leverage Handreamnet's Japanese subsidiary and global network to strengthen its foothold in overseas markets, while continuing to pursue new business development and strategic investment centered on AI and security.

Lee Ryeong, CEO of Daekyo CNS and incoming co-CEO of Handreamnet, said the acquisition was "a strategic decision to secure future competitiveness by making AI and security the core pillars of growth." Lee added that the company would combine Daekyo CNS's IT service capabilities with Handreamnet's network security technology "to deliver a higher level of digital transformation and security services to customers, and to emerge as a leading AI-based security solutions company in Korea."

According to a 2025 survey on the domestic information security industry released by the Korea Information Security Industry Association, South Korea's information security market generated 18.59 trillion won ($12.2 billion) in sales in 2024, up 10.5 percent from the previous year. Of that, information security sales reached 7.12 trillion won, a 15.9 percent increase. The move into security is seen as one way Daekyo is diversifying its portfolio to counter a shrinking school-age population and intensifying competition in its core education business.