SK Telecom becomes first Asian firm to win EU Horizon grant for quantum cryptography research

SK Telecom will develop next-generation quantum cryptography technology with funding from Horizon Europe, the EU's flagship research grant program — becoming the first private company in Asia to receive Horizon research funding.

The company announced Tuesday it had secured a Horizon Europe project to develop next-generation quantum key distribution (QKD) technology. The project is a multinational collaboration with partners in three European countries and will run for three years.

Horizon Europe is the EU's principal research fund, with a total budget of approximately 95.5 billion euros (about 170 trillion won). South Korea joined the program as an associate member in July 2025, becoming the first Asian country to do so, and is now eligible to receive funding directly from Europe.

The project aims to implement and demonstrate a next-generation QPIC-AI-based QKD system to strengthen telecommunications security.

QKD uses the principles of quantum mechanics to simultaneously generate and distribute quantum encryption keys at both ends of a communication link. Because any attempt by a third party to intercept the signal alters the physical state of the quantum particles, the technology is theoretically immune to hacking and is considered the most secure encryption system currently available.

Existing QKD systems, however, carry a significant deployment cost burden. Miniaturizing QKD hardware and reducing installation costs have long been identified as the central challenges to broadening the quantum cryptography communications market.

The QPIC-AI technology SK Telecom will develop under this project addresses both problems at once.

First, optical components that previously required multiple separate devices will be integrated onto a single small chip using semiconductor process technology — specifically photonic integrated circuit (PIC) technology — dramatically shrinking the overall system. The goal is to replace large optical equipment with a single chip.

Second, embedded AI will detect and correct in real time any fluctuations in optical performance caused by external factors such as temperature changes and vibration, improving the overall stability of the QKD system.

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

SK Telecom said it expects the joint research with European partners to contribute to international standardization efforts as well.

SK Telecom has pursued quantum cryptography development and commercialization since 2011 — the first major South Korean conglomerate to do so — accumulating more than 15 years of work in the field. Through various project wins, the company has expanded wired QKD technology into wireless and satellite QKD and developed high-performance 10 Gbps-class quantum random number generator (QRNG) technology. It is also working to extend quantum cryptography applications into the defense and public-sector markets.

"Winning this Horizon Europe project confirms SK Telecom's research and development capabilities in quantum cryptography," said Ryu Tak-gi, SK Telecom's head of network technology. "Through the development of a next-generation QKD system combining PIC and AI technology, SK Telecom will strengthen its leading position in the global quantum cryptography communications market."

Meanwhile, SK Telecom continues to push forward on quantum cryptography with a broader goal of achieving "quantum hybrid" security — combining the strengths of physical security through QKD and algorithm-based security through post-quantum cryptography (PQC).