KCS is showing strong performance. The news that the National Intelligence Service will begin full-scale evaluation of quantum cryptography communication products as early as this month appears to be influencing the stock price. If certification is achieved, it means that quantum cryptography communication, which had been at the pilot stage, will be commercialized for the first time in the world.
At 9:29 a.m. on the 9th, KCS was trading at 8,540 won, up 21.48% from the previous day.
While quantum computer technology is relatively a latecomer, Korean companies have taken an early lead in the quantum cryptography field. The National Intelligence Service’s establishment of certification standards for quantum cryptography products for the first time in the world seems to reflect the persistent demands of domestic companies to open access to the public market.
SK Telecom established the first quantum technology research institute among domestic large corporations in 2011 and acquired the Swiss quantum cryptography communication company IDQ in 2018 to develop a Quantum Random Number Generator (QRNG). Subsequently, they created a QRNG chip that implements the QRNG in semiconductor form and applied it to the quantum security phone ‘Galaxy Quantum Series.’ Recently, they released the ‘Quantum Crypto chip,’ which integrates the QRNG chip and quantum communication semiconductor into one.
At the 'World Mobile Congress (MWC23)' held in Barcelona, Spain, SK Telecom showcased a next-generation security chip that integrates quantum random number generation and cryptographic communication functions. SK Telecom released the 'Quantum Crypto chip,' which combines the quantum random number generator (QRNG) chip and cryptographic communication semiconductor developed jointly with IDQ, a subsidiary of SK Square, and KCS, a domestic security company.
The 'Quantum Crypto chip' is an ultra-lightweight, low-power chip that provides strong security functions to various IoT (Internet of Things)-based products and devices. It incorporates strong security technologies such as quantum-based cryptographic key generation and Physical Unclonable Function (PUF) technology to prevent physical cloning.
SK Telecom emphasized that strong security is the biggest advantage of the 'one chip.' KCS’s existing chip has obtained Level 2 cryptographic module validation (KCMVP) certification from the National Intelligence Service, the highest security level among domestic cryptographic chips. The hardware quantum cryptographic chip, which adds quantum random number generation functionality, provides high-performance cryptographic communication based on quantum randomness.
The one chip is expected to be applied to various products in the defense and public sectors. By integrating two chips responsible for quantum random number generation and cryptographic communication functions into one chip, it achieves both economic efficiency and ease of installation. Additionally, the one chip is 30% cheaper than purchasing the quantum random number generator chip and cryptographic communication function chip separately. The integration also improves density, reducing board size by 20% compared to installing two separate chips. This makes it easier to install in small devices such as IoT.
The one chip is currently undergoing security certification by the National Intelligence Service. Since it adds quantum random number generation functionality to the previously certified KCS cryptographic chip (KEV7), the certification process is expected to be shortened.
If a quantum cryptography communication network is established in government and public institutions to secure references, entry into the private market could become easier. Overseas market expansion can also be targeted. The EU Quantum Communication Infrastructure (EU QCI) project, a quantum cryptography commercial network construction project underway in Europe, is already discussing network configurations similar to those in Korea.
With the recent surge in AI technologies such as ChatGPT and the increasing importance of security, SK Telecom plans to quickly apply the one chip to our daily lives.
Researcher Choi Seong-hwan of ResearchAlum explained, "Quantum computer development is expected to play a significant role in AI technology advancement," adding, "It is a time to explore quantum technology." He further stated, "If quantum computer development is difficult, it is necessary to build a defense system through investment in quantum cryptography communication first, so attention should be paid to leading domestic companies like SK Telecom and companies collaborating on quantum technology."
ResearchAlum identified KCS, Woorinet, and Dream Security, which have cooperative relationships with SK Telecom and are expected to contribute significantly to building an environment for full-scale quantum cryptography communication services in the future, as promising stocks.
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