This post is also available in: English
This post is also available in: English
The era of digital transformation is also the era of cyberattacks. The increased frequency of hacker attacks are pushing governments and businesses to look for new ways to ensure more secure ways of transmitting information. This is also the case in South Korea. Building on a long-history as an ICT nation, South Korea has a considerable advantage in their efforts to develop Quantum Communication technology.
Quantum Communication 101
Quantum communication can briefly be explained as the use of quantum principles to transmit information in a secure manner through quantum cryptography.
Quantum communication lies within the field of applied quantum physics and takes advantage of the laws of quantum physics to protect data. The advances of quantum communication systems are closely related to the progress of quantum computing, which increases the potential vulnerability of existing encryption system. Simply put – we need to develop better encryption systems that can withhold against the Quantum Computer.
Quantum Communication technology can be used across many sectors. It can ensure better protection of personal and medical data in the healthcare system. It can protect automated, smart factories against hacker attacks. It can safeguard financial institutions and transactions against fraud and provide safe payment system links. It can protect critical national infrastructure, such as public transportation systems and large-scale energy infrastructure. It can allow military operations to transmit confidential information and improve drone reconnaissance.
One of the most utilized Quantum Communication technologies today is Quantum Key Distribution (QKD)[1], which can send encrypted data through fiber-optic cables and then use decryption keys – encoded and transmitted in a quantum state – to decode the information. In time, this process can be done through wireless communication.
Quantum Key Distribution (QKD) will be the first widely used quantum technology, subject to broad adoption in the next 5-10 years, but in the next 20 years, we might see the reality of a quantum internet, where information is transmitted in the quantum channel.
Why is this interesting for Denmark?
While applications of quantum technology are still at an early stage, Quantum communication technologies are the most mature of the emerging technologies and already on the commercial market.
Internationally, we see a fierce competition between telecommunication companies who seek to dominate the quantum communication field, and the global quantum communication market is expected to grow from approx. 1 billion USD in 2023 to 11 billion USD by the end of 2036[2]. For South Korea specifically, the quantum communication market is expected to grow from 46.6 billion won in 2023 (approx. 35 million USD) to 242.2 billion won (approx. 176 million USD) by 2030[3].
The unique market structures and industrial strengths of South Korea in telecommunication and semiconductors makes South Korea an interesting market for Danish stakeholders involved in the research, development and commercialization of quantum communication technology.
Furthermore, the South Korean government actively seeks to increase international collaboration with innovation stakeholders in like-minded countries such as Denmark, and the South Korean government is already funding several joint research projects in the quantum field with European counterparts.
Given South Korea’s strongholds and experience within QKD, the country is also an excellent testbed for the use of quantum secure communication as well as obtaining possible use cases and best practices on application opportunities. As an example, KEPCO – Korea Electric Power Corporation – are using QKD-products for protection of the command-and-control system for the Korean power grid.
Finally, South Korea offers several generous programmes for international start-ups looking to establish business and office in South Korea, where foreign start-ups in the quantum field would be very welcome additions to the Korean funded programmes.
How far are we?
Regarding policy and government initiatives, among South Korea’s chief achievements is the completion of phase one of the nation-wide QKD network in 2022 – called National Convergence Network. With a total length of 800 km, the QKD network infrastructure secures the communication network of 48 government organizations across the country, making it one of the largest quantum cryptography networks outside China.
The same year, South Korea launched the world’s third quantum cryptography communication service, while they introduced the world’s first security verification system for quantum cryptographic communcation in 2023.
In June 2023, South Korea put forward a mid- and long-term national strategy for their efforts within quantum technology, including quantum communication and quantum cryptography[4]. The strategy presents the South Korean preconditions for developing a strong quantum ecosystem and obtaining a predominant market position by 2035.
South Korea aims to utilize their advanced high-tech industries and strong ICT infrastructure to position themselves as a global quantum leader with a strong quantum industry. As an example, South Korea expects to pilot a nationwide quantum internet already by 2035.
As to investments and funding in development of quantum technologies, investments are primarily driven by the Korean government. With the recent strategy, the government plans to execute 3 trillion won (approx. 2.3 billion USD) of public-private investments in the period of 2023-2035. These investments add on top of previous investments of 27 billion won in the period 2019-2022 for the technology development of quantum cryptography communication.
In 2024 specifically, the government plans to invest 300 billion won (approx. 230 million USD) in quantum R&D projects – 2/3 of this in quantum communication related activities. Among the core identified areas are advancements of Quantum cryptography communication integration and transmission technology, Quantum internet technology development, Quantum cryptography communication industry application and diffusion technology development.
Entrepreneurship also plays an important role in the quantum communication sector. South Korea generally boasts of a strong start-up sector who benefits from ambitious government investments, including the national Outstanding Startup 1000+ project, which aim to support the scale-up of high-potential and technology-intensive start-ups.
In Quantum Communication, a number of smaller companies are already thriving. EYL – a Korean security start-up – developed an ultra-small cryptography chip by applying Quantum Random Number Generation (QRNG) technology. This chip is currently being used by the US Air Force in their aerial vehicles, including drones. Other notable start-ups include QSimplus, who offer a software simulator for cryptographic communication.
Looking at corporates, SK Telecom is definitely the most active and engaged company within quantum communication, having launched their own quantum lab in 2011. In 2014, SK Telecom commercialized their first QKD device. SK Telecom invested in the Swiss company ID Quantique in 2018, which is a world-leading QKD-provider behind several implemented QKD networks. They are the two main companies behind the South Korean national QKD network, which was built by SK Broadband with ID Quantique’s QKD product and Key Management System (KMS).
In 2019, SK Telecom and ID Quantique implemented the commercialization of the first-ever Quantum Cryptography Network, by applying QKD on SK Telecoms 5G network over a 330 km distance. The companies simultaneously introduced a QRNG authentication server to authenticate 5G subscribers. SK Telecom also launched the Galaxy Quantum Mobile series with Samsung Electronics and ID Quantique, providing users with a higher level of security in the mobile environment.
In 2024, SK Telecom further unveiled its first commercial quantum encryption chip, named Q-HSM. This chip integrates hardware-based QRNG and physical unclonable function technology alongside software-based PQC.
When it comes to efforts within academia, a rapid increasing number of South Korean universities and research institutions are active in this field, responding to the government ambitions for and investments in the quantum technology. Among the most prominent universities are KAIST, Seoul National University, SKKU, Yonsei University and POSTECH. More specialised research is undertaken by government funded research institutions such as Korea Institute of Science and Technology (KIST), the Electronics and Telecommunications Research Institute (ETRI), Korea Institute of Science and Technology Information (KISTI) and Korea Research Institute of Standards and Science (KRISS). There is a strong emphasis on international research collaboration with leading like-minded countries to further the South Korean position in the global market.
A number of universities are operating dedicated quantum graduate programmes. On top of this, government-funded graduate schools have been established at three universities; Korea University, KAIST and Postech, where they educate students from a number of smaller/less specialised Korean universities to increase the South Korean quantum workforce, which is expected to increase from 500 people in 2024 to 2500 people in 2035.
Let’s connect
Please reach out to Inie Nør Madsen from ICDK Seoul at inimad@um.dk for any inquiries. ICDK Seoul offers services to corporates, SME’s and academic partners looking to dive further into the area of quantum communication.