South Korea’s largest shipbuilding group, HD Hyundai, has announced plans to build a quantum cryptography communication network linking shipbuilders and defense contractors in South Korea. This move is expected to strengthen cooperation between South Korea and the United States in rebuilding the US shipbuilding industry.
Recently, HD Hyundai announced that it will participate in a national quantum secure network infrastructure construction project led by the South Korean government, which is expected to cost approximately 3 trillion won (approximately US$2.2 billion) by 2035.
In 2021, HD Hyundai was selected as a core partner for the South Korean government’s quantum cryptography project after successfully piloting a quantum communication network with KT Corp. and a government agency.
South Korea’s Ministry of Science and ICT will soon officially announce the project, which aims to cultivate more than 1,000 quantum technology companies, deploy quantum cryptography communication networks in government agencies, and build related infrastructure for key industries such as finance, shipbuilding and defense.
A quantum cryptography communication network is a system that uses the laws of quantum physics to securely share cryptographic keys, fundamentally eliminating eavesdropping or hacker attacks.
HD Hyundai plans to apply this high-security network to commercial ship and naval vessel construction, as well as maintenance, repair, and overhaul (MRO) operations, to prevent the leakage of confidential information. The company expects that the quantum security system will accelerate the South Korean government’s $150 billion shipbuilding cooperation program, “Make American Shipbuilding Great Again” (MASGA), which aims to revitalize the US shipbuilding industry.
HD Hyundai anticipates that the advanced quantum-secure network will accelerate the MASGA cooperation program, as the technology promises absolute protection against the leakage of confidential information, a key requirement for building and maintaining US ships. This technology will allow Korean shipbuilders to communicate with the US military in real time on sensitive matters such as ship designs, component specifications and maintenance schedules, eliminating the risk of eavesdropping or hacking.
A South Korean industry insider said, “Potential information leakage is one of the main concerns of the US government regarding the MASGA project. Once HD Hyundai establishes a comprehensive quantum cryptography network among its subsidiaries and subcontractors to ensure high-level security, cooperation with the United States is expected to be further strengthened.”
Analysts predict that quantum security will become the cornerstone of the global defense and shipbuilding industries. According to MarketsandMarkets’ forecast, the global quantum cryptography communications market is expected to grow from US$1.1 billion in 2024 to US$5.4 billion in 2030, an increase of nearly fivefold.
As the first shipbuilding company to apply a quantum communication network, HD Hyundai will serve as the hub of South Korea’s quantum cryptography communication network, which will ultimately connect 1,200 companies in South Korea’s shipbuilding and defense industries, mainly concentrated in the southern industrial cities of Ulsan and Changwon. Its coverage will not only include HD Hyundai Heavy Industries, HD Hyundai Marine Solution, and other subsidiaries of HD Hyundai, but will also connect other shipbuilding companies, such as the mid-sized South Korean shipbuilder K Shipbuilding.