South Korea Accelerates Quantum Technology Development

As of March 26, 2025, major domestic companies in South Korea are aggressively pursuing growth through quantum technology, a field seen as pivotal for the future. The South Korean government is also stepping up its efforts to transition quantum technology from research and development into practical industrial applications. This strategic move comes in light of the increasing recognition of quantum technology's potential impact across various sectors, including finance, pharmaceuticals, and materials science.

At the recent CES 2025, held in January, significant tech companies showcased innovations that combined enhanced error rates, increased qubits, and the integration of quantum, cloud, and artificial intelligence (AI) technologies. This event underscored the belief that quantum computing is set to transform industries significantly. LG Electronics, regarded as a leader in quantum computing development in South Korea, joined the IBM Quantum Network in January 2022. This collaborative initiative, which includes over 170 member companies, aims to advance quantum computing technology.

As of now, LG Electronics is concentrating on developing quantum computing applications utilizing IBM's quantum systems. Meanwhile, Megazone Cloud, a cloud management service provider, is broadening its focus to include quantum computing. The company has launched M-Qloud, a quantum cloud platform aimed at penetrating the Asian market. This platform serves as a gateway to global quantum computing technologies, similar to those offered by AWS and IonQ. Additionally, Megazone Cloud is providing a comprehensive consulting program, M-Esqalation, to assist businesses looking to adopt quantum technologies.

In Japan, Megazone Cloud plans to establish a local entity, Megazone Corporation, in partnership with ITOCHU Techno-Solutions Corporation, to further develop its quantum cloud business. The landscape is also bright for smaller companies in the quantum sector. Aton, a fintech security firm, completed the development of a next-generation private key authentication solution that incorporates quantum-resistant cryptography technology in December 2024. The company aims to target both the domestic financial sector and international markets with this new solution.

Other players in the quantum space include Iwinplus, which is producing quantum random number generator chips, and Cowiver, which is developing transmission equipment compatible with quantum cryptography communication systems. Meanwhile, the South Korean government has launched the Quantum Strategy Council under the Prime Minister’s office to bolster support for quantum technology research and development.

By 2025, the South Korean government has set ambitious goals for the industrialization of quantum technology, focusing on developing quantum software and algorithms, nurturing quantum component industries, and supporting the growth of startups in the quantum field. Infrastructure development, such as quantum foundries and testbeds, is also a priority.

In a recent report, the Korea Electronics and Telecommunications Research Institute (ETRI) emphasized the importance of investing in basic science areas, such as materials and process technology, and quantum state control technology, to lead in the quantum ecosystem. ETRI has also suggested that South Korea should send young researchers with master's and doctoral degrees to leading quantum computing countries for training and invite overseas scholars to local universities and research institutes for collaboration.

On the international front, Google’s quantum computing development lead, Julian Kelly, recently predicted that useful quantum computers could emerge within the next five years, a stark contrast to NVIDIA CEO Jensen Huang's prediction of a 20-year timeline for practical applications. Kelly stated in a March 25 interview with CNBC that groundbreaking discoveries in real-world applications solvable only by quantum computers could occur by 2030. He noted that early quantum computers might find their initial use in physics simulations, tackling problems currently impossible or taking too long for existing computers.

Google announced its Willow quantum chip in December 2024, claiming that a quantum computer equipped with Willow solved a problem in five minutes that would take the fastest conventional computer, known as Frontier, an astronomical 10 sextillion years. This claim highlights the potential of quantum computing to revolutionize problem-solving across various fields.

As interest in quantum technology grows, DWaveQuantum, a company developing quantum computing systems and software, recently published a paper on quantum supremacy technology. Jensen Huang's commitment to developing quantum computing technology has sparked renewed enthusiasm for quantum-related stocks. NVIDIA plans to launch an accelerated quantum research center (NVAQC) in the latter half of 2025 to expedite advancements in quantum computing.

Peter Chapman, CEO of IonQ, also expressed optimism, stating that the practical realization of quantum computers may come sooner than many anticipate. This optimism has led to increased buying activity in quantum-related stocks, with IonQ expected to emerge as a leading player in the U.S. stock market.

In the broader market, Palantir, a U.S. data analysis software company, has seen its stock price increase significantly since the second half of the previous year, driven by expectations of growing revenues in the private sector. The company's stock recently hit a high of $124 before dipping to the $70 range and then rebounding to around $90.

Super Micro Computer, another prominent player in the AI server market, has also experienced a surge in stock price, doubling since the beginning of the month to reach $60 amid fluctuations due to accounting issues. Meanwhile, the Direxion Daily Tesla Bull 2X (TSLL), which tracks Tesla's daily returns, has become a focus for domestic investors, accounting for a significant portion of its market capitalization.

As the quantum computing landscape continues to evolve, South Korea's commitment to fostering its quantum ecosystem, along with the ongoing developments from major tech companies globally, signals a transformative shift in technology that could redefine various industries.