— Startup eyesKosdaq listing, digital platform rollout to fuel overseas growth
This is an article published in The Korea Herald:
Fescaro(https://www.fescaro.com/en/), a Korean startup specializing in auto security, has defied the traditions of the original equipment manufacturer-heavy industry and is now looking to expand its all-around anti-hacking capabilities on the global stage.
“A normal auto cybersecurity company is usually in a third-party position as it offers solutions defined and required by automakers and parts suppliers, which is regarded as a regular value chain,” said Hong Seok-min, CEO of Fescaro, in an interview at the startup's office in Suwon, Gyeonggi Province, Wednesday.
“But we worked with (auto) manufacturers from early phases to define (cybersecurity) requirements for the vehicle's overall security architecture and parts companies, effectively acting as a Tier 0.5 cybersecurity partner, which was a rare case in our industry.”
Fescaro made a bold, all-in commitment from 2021 to 2023, dedicating all its capabilities and resources to collaborate with KG Mobility, formerly known as SsangYong Motor, in addressing European automotive cybersecurity regulations.
“We had all of core technologies but that did not automatically lead to successful commercialization because they needed to be applied to mass produced vehicles so in simple terms, (automakers) do not use a technology unless their competitors use them,” said Hong, referring to the risk of implementing a new technology onto a vehicle that contains almost 100 electronics continuously interacting and and the crucial need for reliability.
“We needed to apply our technologies to actual cars, advance their quality and build up our references. Because I came from the automotive industry, I knew how important it is to secure trust,” Hong explained his reasoning behind the decision to work with the ailing automaker.
“Working with SsangYong, we were able to expand our network through their partners and prove our security solutions' validity.”
“In doing so, more projects came our way and we ended up working with most of the auto parts makers that supply products to not only SsangYong but also Hyundai Motor and overseas automakers. I can say proudly that there might be companies that never worked with us, but there are no companies that did business with us only once. This is because we always define the 'why' and 'what,' and deliver the most practical 'how' –tailored to our clients' needs.”
In 2023, Fescaro became the first Korean company to support OEMs and Tier 1 parts makers in receiving the European Union's four cybersecurity regulation certificates: Cybersecurity Management System, Software Update Management Systems, Vehicle Type Approval and ISO/SAE 21434.
According to the CEO, Fescaro has completed mass production tests of its auto cybersecurity technologies for about 155 controllers and 60 types of semiconductors, achieving stability and an economy of scale as a software solution provider.
“In addition to automotive cybersecurity regulations (UN R155 and R156), Europe drafted a law called the Cyber Resilience Act that applies to every sold product installed with software, so we have been encountering opportunities throughout the broader mobility industry and can score orders in tractors and construction equipment,” said Hong.
Fescaro, which was established in 2016, has raised nearly 30 billion won ($22 million) in investment funding. The startup filed for a preliminary review for going public on the Korea Exchange's tech-heavy Kosdaq in June. The startup is expected to be listed on Kosdaq either in late October or early November.
Fescaro was able to log operating profits for the fourth consecutive year in 2024, as its annual sales grew to 14.3 billion won in 2024 from 1.9 billion in 2021. The CEO pointed to the excellent competence of each employee as the reason behind the unusual feat for a startup.
“My colleagues used to always tell me that they couldn't do something or that something was impossible to do,” said Hong.
“I would tell them that what we do is impossible. But because we do the impossible, our clients give us work and pay us. … After saying that for a few years, nobody tells me that they can't do something. The core values of our organization have changed. On top of that, I ask them what I need to do to help them solve the problem. Accepting the impossible as a given, and approaching it with a creative and practical mindset, has become our true competitive edge.”
As for the plans to go global, the CEO said Fescaro wanted to become a total platform provider instead of a regular vendor. The company has been working on the digital transformation of human-centered consultations required to customize cybersecurity solutions for regional clients in different countries through an online platform.
To this end, the startup completed the development of CSMS Portal earlier this month. CSMS Portal offers end-to-end automated cybersecurity control, including process abstraction, application lifecycle management and a virtual security operation center through a single platform. This enables efficient and stable cybersecurity management throughout the entire lifecycle of a vehicle by taking care of automobile development, mass production, maintenance and repairs.
“We are pursuing practical breakthroughs. …One of the reasons we are going public is to raise funding, but that's not that big of a problem,” said Hong.
“When we go global, overseas clients do not know us very well. If we are listed on the Korea Exchange's bourse, we can eliminate distrust. I keep saying this, but we have skills. So if we can remove the barrier of 'Never heard of this company,' we can get things done because we have the ability.”
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SOURCE The Korea Herald
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