[Market Pulse] How Is Korea Preparing for Quantum Computing?

Nobel Prize Signals Imminent Realization of Quantum Computing
Securing Market Leadership Requires Strategic Investment Beyond Hardware,
Including Algorithms and Applications

This year's Nobel Prize in Physics was awarded to scientists who discovered the fundamental physical phenomena of superconducting qubits. This Nobel Prize holds special significance for IBM, which is leading the development of superconducting-based quantum computing technology. Considering that the Nobel Prize is given for scientific discoveries that have a practical impact on the present and near future, quantum computing has been recognized as a technology poised to bring innovation across industries and society, with its arrival imminent.

Korea is also taking strategic steps to avoid falling behind in the era of quantum computing. The government is currently promoting the "Quantum Science and Technology Flagship Project," which will invest a total of 645.4 billion won by 2032. It is very encouraging that the commitment to continued investment in quantum technology has been maintained despite changes in administration. However, it is regrettable that most current investments are concentrated on quantum hardware development.

As quantum computers surpass the level at which they can simulate scientific problems that are difficult to solve with existing supercomputers, we are now presented with the opportunity to develop quantum algorithms capable of realizing "quantum advantage." Quantum advantage refers to the stage at which quantum computers can solve specific scientific and industrial problems faster, more accurately, and more cost-effectively than classical computers.

Globally, there has been meaningful progress in the development of quantum algorithms and applications. For example, global financial company HSBC collaborated with IBM to conduct an experiment predicting corporate bond trades using quantum algorithms, achieving results up to 34% better than traditional classical methods. This is a case that demonstrates the practical value of quantum computing in the financial industry, including risk management, price prediction, and portfolio optimization.

Lockheed Martin and IBM jointly conducted research to model the electronic structure of open-shell molecules. By accurately solving this problem-which is difficult to compute using traditional methods-through the quantum-classical hybrid technique known as Sample-based Quantum Diagonalization (SQD), they demonstrated the potential applications of quantum technology in various fields such as aerospace, high-performance materials, and sensor technology.

These cases clearly show that while hardware is important, the ultimate key to creating industrial value lies in the development of applications and algorithms. Since no country has yet established an absolute advantage in this field on the global stage, Korea has ample opportunity to lead the world market if it invests strategically from now on.

With the full-scale quantum era approaching, Korean companies must proactively prepare for the opportunities provided by quantum computing. The most important task for this is investment in research and development of quantum algorithms and application technologies. The government and industry must strengthen R&D organizations and create an environment where long-term research can be pursued.

Close cooperation between academia and industry is also essential. Academia is the center of fundamental research, leading the discovery of new quantum phenomena and the development of algorithms, while industry provides the resources and expertise to transform these into practical frameworks that create social value.

Korean companies that lead the global market should build teams composed of domain experts and quantum technology specialists to solve complex industrial challenges, and take the lead in developing quantum software and algorithms. By integrating quantum and classical computing, they can strengthen research based on industry-specific insights and spread achievements across various fields.

Such collaboration plays a key role in building a vibrant quantum ecosystem in Korea and will contribute to Korea establishing itself as a powerhouse in quantum technology.

Quantum computing is a growth industry expected to create massive employment and economic ripple effects in a variety of fields, including new drug and new material development, finance, logistics, and manufacturing optimization.

With its abundant talent, Korea is in a favorable position to lead groundbreaking advances in technology and the economy. Now is the time for a strategic decision on where to set priorities.

Baek Hanhee, Director of IBM Quantum Algorithm Center