Daedong Industrial (Daedong) announced on Thursday that it has begun developing a security system to comply with the European Union’s Cyber Resilience Act (CRA).
The CRA, scheduled to take effect in December 2027, is a regulation mandating security requirements for most digital products sold in Europe.
This new law requires manufacturers to implement security risk management, provide regular security updates, report security incidents, and submit a Software Bill of Materials (SBOM) before launching their products.
Non-compliance could result in severe penalties, including fines of up to 15 million EUR (about 17.7 million USD) or 2.5% of global revenue, whichever is higher. Companies may also face sales bans and forced market withdrawals.
In response, Daedong has proactively initiated measures to address this regulation and accelerate its penetration into the European agricultural machinery market.
The company has partnered with Pescaro, a vehicle integration security platform firm, to analyze tractor security vulnerabilities. Daedong plans to bolster its product security this year by implementing cybersecurity-specialized controllers.
By the first quarter of 2027, Daedong aims to establish comprehensive security management capabilities across its entire product lifecycle. This will be achieved through dedicated cybersecurity IT infrastructure that automates security workflows, manages assets, oversees software configurations, and addresses vehicle security threats.
The new security system will primarily focus on Daedong’s tractor models currently supplied to the European market.
These European export models either already incorporate or are slated to include advanced technologies such as remote diagnostics, autonomous driving, and over-the-air (OTA) updates. Consequently, implementing technical measures to meet the CRA’s stringent security standards is essential.
Daedong views its CRA compliance efforts as an opportunity to internalize cybersecurity capabilities and plans to continue refining its approach to address evolving global security regulations.
Na Young-jung, head of Daedong’s P&Biz Development Division, emphasized that the CRA isn’t optional for manufacturers eyeing the European market – it’s a necessity. By implementing a security system that meets global standards, it’ll not only enhance the product reliability but also significantly boost the brand competitiveness in Europe.
Meanwhile, Daedong is ramping up its business expansion, positioning Europe as its second strategic hub. This year, the company has rolled out an aggressive local strategy, offering a seven-year warranty on all tractor models and introducing new premium large-sized products.