"Mithos Crisis Is an Opportunity": Quantum Security Market Expands

Korean Industry Pushes PQC-Based Solutions Market to Grow to $3.7 Billion by 2035

Technology|
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By Lee Jin-seok
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The shift to quantum security is accelerating amid growing concerns that the advent of quantum computers could render current encryption systems obsolete. AI-generated image - Seoul Economic Daily Technology News from South Korea
The shift to quantum security is accelerating amid growing concerns that the advent of quantum computers could render current encryption systems obsolete. AI-generated image

As high-performance artificial intelligence (AI)-based hacking threats become reality through Anthropic's latest cybersecurity model "Mithos," competition to secure next-generation security technology is intensifying. The adoption of quantum security systems has emerged as the biggest topic across major industries, including the security sector as well as finance and telecommunications.

According to the information technology (IT) industry on Tuesday, the transition to quantum security is gaining momentum as concerns grow that current encryption systems could be rendered obsolete by the emergence of quantum computers. Quantum security systems are drawing particular attention as a means of preparing for next-generation attack environments combined with advanced AI such as Mithos.

While there has been no disagreement that quantum computing technology is the next-generation "game changer," the dominant view had been that introducing quantum encryption was premature given that the technology is in its early stages. However, the security shock triggered by Mithos has lent weight to arguments that preemptive measures are needed, and the government is also actively pursuing the transition to quantum encryption.

The leading technologies in quantum security are divided into "post-quantum cryptography (PQC)" and "quantum key distribution (QKD)," depending on the data encryption method. PQC is a method that can be applied to existing networks through software upgrades alone, without separate hardware changes, while QKD is a technology that generates and distributes symmetric encryption keys that cannot be intercepted, using the physical properties of quanta.

At the current commercialization stage, PQC, which is easy to build, appears to be a step ahead. Raonsecure began by supplying a PQC-based encryption module solution to KDB Life Insurance, and is currently in contract negotiations with more than 10 domestic financial firms. Hancom WITH is developing a security solution combining PQC with data security posture management (DSPM), while Genians is developing a next-generation quantum encryption system that integrates PQC with a high-performance key management system (KMS). AhnLab and Fasoo AI plan to apply PQC to their major security products as soon as the government's PQC standardization work is completed.

Among mobile carriers, KT and LG Uplus have built PQC-based security systems and entered the market targeting public institutions and the financial sector. SK Telecom will pursue a global QKD system development project over the next three years with support from "Horizon Europe," the European Union (EU)'s large-scale research fund.

As the quantum computing era becomes more visible, the related market is also expected to grow sharply. According to global market research firm Roots Analysis, the global quantum encryption market, which stood at $710 million as of 2025, is projected to grow to $3.73 billion by 2035.

Original reporting by Lee Jin-seok for Seoul Economic Daily.

AI-translated from Korean. Quotes from foreign sources are based on Korean-language reports and may not reflect exact original wording.

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