Seoul, South Korea - KT and Shinhan Bank have teamed up to address the increasing sophistication of cybersecurity threats in the financial industry.
The two companies have temporarily installed a "hybrid quantum security network" within Shinhan Bank's infrastructure to evaluate its performance.
The network, which connects Shinhan Bank's headquarters in central Seoul to its Gangnam branch, integrates quantum key distribution (QKD) technology and post-quantum cryptography (PQC).
QKD uses quantum mechanics principles to prevent eavesdropping on physical communication lines, while PQC provides software and application protection that is unbreakable even by quantum computers.
During the testing phase, KT prioritized verification of data transmission performance, which directly affects communication quality.
The transmitted data was encrypted within 10 microseconds, and hundreds of thousands of connections were securely established with PQC without any errors.
The security network uses a "quantum-resistant public-key cryptography algorithm" selected by the United States Federal Information Processing Standards (FIPS).
KT claims that the hybrid quantum security network complies with domestic regulations on the security of quantum cryptography communications and the government's roadmap for the transition to PQC, making it suitable for various global public and financial institutions.
KT partnered with domestic and international equipment manufacturers and security experts, including Toshiba Digital Solutions, Coweaver, and DreamSecurity, to develop the hybrid quantum security network.
