South Korea to Move Up to 250 Public Systems to Private Cloud

Which systems move first

The 50 systems already confirmed for this year are relatively easy to migrate, such as agency websites and simple information services. After pre-testing and a stabilization period, the government expects to finish those transfers by the first quarter of next year.

Next year's targets will be chosen based on the National Intelligence Service's N2SF security grades (classified, sensitive and open) and on each system's characteristics. Specific systems will be decided once the budget is finalized.

A market worth hundreds of billions of won

This year's migration budget is 9 billion won. Industry estimates put next year's budget at 50 billion to 70 billion won, assuming roughly 300 million won per system. Volumes should keep rising as the Daejeon center is wound down in stages.

Competition is already intense. Public cloud contracts typically continue from initial migration into operation and maintenance, and once a provider is chosen, the environment, data and management systems are built around it. Switching can be costly, so winning early customers this year is seen as a long-term advantage.

MSPs also stand to benefit, since moving public systems requires analysis of existing systems, migration design, conversion and stabilization. With security in focus, demand should grow for providers with proven security and operations capabilities. An industry official said the strong lock-in effect of CSP business will drive a race to secure early volume.