[Featured Stock] Cowiver, Digital New Deal Quantum Cryptography Communication Expectations... US Verizon Quantum Key Distribution Commercial Network

[Asia Economy Reporter Hyunseok Yoo] Kowiver is showing strong performance. The news that the US telecom company Verizon is commercializing quantum-based security technology appears to have influenced the stock price.

As of 9:25 AM on the 11th, Kowiver was trading at 11,800 KRW, up 4.89% (550 KRW) compared to the previous trading day.

The previous day, an IT specialized media reported that SK Telecom supplied quantum key distribution (QKD) devices to the US telecom company Verizon. This is the first case of commercial sales of quantum-based security technology to a major global telecom company. By securing a Verizon reference, SK Telecom has laid the foundation to lead the global market for quantum cryptography communication, considered the next-generation security technology.

According to SK Telecom and its quantum cryptography subsidiary IDQ, Verizon applied QKD to the optical communication network connecting Washington DC and Virginia, successfully operating quantum cryptography communication for the first time among US telecom companies.

Last year, the National Information Society Agency (NIA) of Korea began a demonstration of an open interface-based integrated quantum cryptography communication transmission device with transmission equipment manufacturers Kowiver and Woorinet, and quantum cryptography company IDQ (a subsidiary of SK Telecom). Quantum key distribution (QKD) applied by different companies could not send or receive quantum key values between quantum cryptography communication networks. When an open interface-based module is linked to transmission equipment, it enables the exchange of quantum key values between quantum cryptography communication networks applying heterogeneous QKD.

Kowiver and Woorinet are applying 200Gbps and 100Gbps level encrypted transmission units respectively to transmission equipment (ROADM, POTN), implementing quantum key communication functions based on an open interface.

In Korea, quantum cryptography communication pilot infrastructure is also being actively established. The Ministry of Science and ICT selected and signed agreements with executing organizations for the 'Quantum Cryptography Communication Pilot Infrastructure Construction' project, reflected in the third supplementary budget under the 'Digital New Deal Plan.' The Ministry of Science and ICT and NIA plan to build quantum cryptography communication equipment and quantum-resistant cryptography systems in 16 sections across public, medical, and industrial sectors with eight consortia led by KT, SK Broadband, and LG Uplus, and to discover application services. KT has partnered with the Korea Institute of Science and Technology (KIST), AhnLab, Catholic University, Peace Eyes, and IYL; SK Broadband with SK Telecom and UR Information Technology; LG Uplus with Seoul National University and Kowiver, respectively.