[Edaily Reporter Yoon Jeong-hoon] #SK Telecom announced on the 9th that it will develop next-generation quantum cryptography technology as part of a project under “Horizon Europe” (hereinafter “Horizon”), a large-scale research funding program of the European Union (EU). This project is a multinational collaboration involving three European countries and is scheduled to run for the next three years.

Horizon is a flagship research fund operated by the EU, with a budget of approximately 95.5 billion euros (about 170 trillion won). In July 2025, South Korea became the first Asian country to join as an associate member, enabling it to receive direct funding from Europe. Leveraging its expertise in quantum cryptography, SKT has secured the opportunity to receive research funding as the first private company in Asia.

The goal of this project is to implement and demonstrate a next-generation “QPIC-AI (Quantum Photonic Integrated Circuit-AI)”-based quantum key distribution (QKD) system to strengthen communication security.

QKD (Quantum Key Distribution) is a technology that generates and distributes quantum encryption keys simultaneously at both ends of a communication link based on the properties of quantum mechanics. Since the physical state of the quantum particles changes the moment a third party attempts to intercept the signal, the system is considered virtually unhackable and is regarded as the most secure encryption system currently available.

Currently, QKD systems face limitations in widespread adoption. Since precision optical components—such as single-photon light sources and interferometers—must be assembled and aligned as separate pieces of equipment, the systems are large and heavy, and there is a significant burden associated with deployment costs. Miniaturizing QKD systems and reducing deployment costs have long been identified as key challenges for expanding the quantum cryptography communications market.

The 'QPIC-AI' being developed by SKT for this project is a technology that simultaneously addresses this issue in two ways.

First, it drastically miniaturizes the system by integrating optical components—which previously required multiple pieces of equipment—onto a single small chip using semiconductor process technology (PIC, Photonic Integrated Circuit). Just as smartphone camera modules have compressed entire cameras of the past into a single chip, the goal is to replace large optical equipment with a single chip.

Additionally, by incorporating embedded AI, it detects and corrects optical conditions affected by external environmental changes—such as temperature and vibration—in real time, thereby enhancing the stability of QKD systems.

The expected benefits of QPIC process technology extend beyond miniaturization through chip-based design. Once mass production becomes possible through semiconductor processes, unit costs will decrease, power consumption will drop, and operating costs will be reduced as well. This lays the groundwork for QKD technology—which has been limited primarily to specific sectors such as defense and finance—to expand into broader fields.

This project also involves institutions from three European countries: the National Center for Scientific Research of Greece (NCSRD), the Austrian Institute of Technology (AIT), and the German semiconductor startup Synogate UG.

NCSRD will oversee the project and develop AI for controlling the QKD optical system, while AIT plans to develop the key management system and Sinogate UG will handle the design of the AI functional logic. SKT will be responsible for developing the PIC-based QKD system, applying AI functions, and establishing and validating the QKD testbed, while ETRI will develop the optical chip for the PIC-based QKD transmitter and receiver.

This joint research with European countries is expected to contribute to international standardization. While South Korea and Europe have different certification standards for quantum cryptography technology, this project is expected to serve as a stepping stone toward unifying the certification standards of international standardization bodies by producing a report analyzing the differences between the two regions.

SKT has been the first major Korean corporation to dedicate itself to the development and commercialization of quantum cryptography technology for over 15 years, starting in 2011. Through winning and participating in various projects from the Ministry of Science and ICT and the Defense Acquisition Program Administration, SKT is leading the development of next-generation quantum cryptography technologies, including the expansion of wired QKD technology to wireless and satellite QKD, and the development of high-performance 10 Gbps-class quantum random number generators (QRNGs).

Furthermore, the company is pursuing the expansion of its applications into the defense and public sectors through products that incorporate post-quantum cryptography (PQC) technology compliant with U.S. standards into zero-trust solutions and quantum cryptographic hardware security modules (Q-HSMs).

Ryu Tak-ki, Head of Network Technology at SKT, stated, “Securing this Horizon project serves as validation of SKT’s R&D capabilities in quantum cryptography. SKT will strengthen its leading position in the global quantum cryptography communications market by developing next-generation QKD systems that integrate PIC and AI technologies.” He added, “We expect the experience and achievements gained through multinational collaboration to significantly contribute to the future development of domestic quantum technology.”