Korea Advanced Materials Signs National Project Agreement on Quantum Cryptography Communication with ETRI, SK Telecom, and Coweaver

Korea Advanced Materials, a company specializing in optical communications, announced on May 8 that it had signed a national research and development project agreement with the Electronics and Telecommunications Research Institute (ETRI), SK Telecom, and Coweaver to commercialize quantum cryptography communication technology and promote its industrial adoption.

The purpose of this agreement is to expand the commercialization of quantum key distribution (QKD) technology and to develop technologies for realizing quantum networks. In particular, the core focus is on miniaturizing and increasing the integration of QKD transmitter and receiver modules based on quantum photonic integrated circuit (QPIC) technology.

Currently, commercial QKD equipment is large and costs more than 200 million won per unit, which has made practical application and widespread adoption in telecommunications equipment difficult. As a result, establishing a miniaturization and mass production system using semiconductor process-based QPIC technology has emerged as a critical challenge.

QPIC technology enables the same functions as existing fiber-optic-based systems within a much smaller space. It is attracting attention as a key element not only for quantum cryptography communication but also for a wide range of applications, including quantum computers and quantum internet.

This project also includes the development of "trusted repeater-based long-distance QKD network technology." This technology aims to overcome the problem of fiber-optic loss, which imposes distance limitations due to the characteristics of quantum signals at the single-photon level. The company expects that, by utilizing a multi-node, multi-hop structure, network expansion over several hundred kilometers will become possible.

Globally, the quantum communication market is growing rapidly. According to market research firm Mind Commerce, the global quantum communication market is projected to grow from 5.523 trillion won in 2025 at a compound annual growth rate of 26.7%, reaching 18.9709 trillion won by 2030. Within this, the QKD market is expected to grow at a compound annual rate of 20.2%, reaching a scale of 10.5439 trillion won by 2030.

An industry official commented, "QKD technology is expected to rapidly expand from high-security industries such as banking, finance, and insurance to various sectors, including government, cybersecurity, defense, and infrastructure. In the future, demand will also increase in areas such as automotive, transportation, manufacturing, and supply chains."

A Korea Advanced Materials representative emphasized, "Through this national project, we will accelerate commercialization from prototypes to the establishment of a mass production system for highly integrated QKD systems. We will also expand cooperation with domestic and international telecommunications companies and public institutions to enhance our corporate value."

Meanwhile, Korea Advanced Materials has signed multiple technology transfer agreements with ETRI for core QKD technologies, including quantum light sources, optical interferometer modules, and phase modulator chips, and continues to develop commercial equipment based on these technologies.