As concerns grow that quantum computers could overturn modern information and communications encryption systems, a new market is opening up in cybersecurity. Countries are fiercely competing to develop encryption systems that are safe from quantum computer attacks.

According to the Korean Intellectual Property Office, the economic value of post-quantum cryptography technology is expected to reach 27 trillion won in 2026, accounting for 11% of the total security market size of 247 trillion won.

Accordingly, the number of patent applications is also increasing rapidly. It has increased by an average of 17.3% per year since 2011, reaching 219 cases in 10 years.

By country, the United States was the largest at 31.6%, followed by Japan (16.2%), China (13.2%), and Korea in fourth place with 10.2%. The Patent Office found that while the number of applications in Japan is decreasing, the growth rate of applications in China and Korea is reaching an annual average of 40%, showing that they are enthusiastic about related development.

In terms of encryption methods, lattice-based encryption was the most prevalent at 32%, followed by hash-based encryption at 28.3%. Post-quantum cryptography is a form of cryptography that greatly increases the complexity of mathematical problems so that they cannot be solved even by quantum computers. Depending on the mathematical problem it is based on, it is divided into lattice, hash, multivariate, code, and elliptic curve.
Post-quantum cryptography development is being led by companies, which account for about 80% of patent applications. Dutch Philips holds the most patents with 73, followed by Sony with 72, Intel with 63, IBM with 43, and Fujitsu with 35. Dutch, American, and Japanese companies are in the top five.

There is only one domestic company in the top 10, Crypto Lab, which ranked 9th with 25 cases, Samsung ranked 16th with 18 cases, and Seoul National University (12 cases) and Chosun University (11 cases) were outside the top 20.

In particular, CryptoLab is focusing on the development of post-quantum cryptography, having applied for 25 patents in the field of lattice-based technology. According to Cryptolab, it holds 66 domestic and 80 overseas patents in the field of homomorphic encryption/post-quantum cryptography, including the original patent for CKKS, a 4th generation homomorphic encryption that supports real number operations.

Crypto Lab has developed and provided services using homomorphic encryption technology: △Corona Movement Safety App, △Privacy Preserving Training, and △HEaaN as a Service (HEaaN Homomorphic Analytics).

Park Jae-il, head of the Artificial Intelligence and Big Data Examination Division at the Korean Intellectual Property Office, said, “Cryptography is a field where we can compete with global corporations with excellent ideas, and it is encouraging that our companies and researchers are doing well there,” adding, “With the advent of the disruptive technology called quantum computing opening up the next-generation cryptography technology market, it is time for a nationwide effort to secure core technologies, prepare for cybersecurity threats, and dominate the market.”