SANDS Lab, KEPCO KDN and KSIGN win post-quantum cryptography pilot migration project
Energy sector’s first PQC migration will use the PQC assessment technology built into MNX Consortium combines cryptographic system expertise and technology for end-to-end model implementation and validation Specialists in power, networking and encryption lay the groundwork for a national cryptographic transition
SANDS Lab, KEPCO KDN and KSIGN win post-quantum cryptography pilot migration project
- Energy sector’s first PQC migration will use the PQC assessment technology built into MNX
- Consortium combines cryptographic system expertise and technology for end-to-end model implementation and validation
- Specialists in power, networking and encryption lay the groundwork for a national cryptographic transition
Photo 1. KEPCO KDN, SANDS Lab and KSIGN
AI security technology specialist SANDS Lab (CEO Kim Ki-hong) announced that it had won the “2025 Post-Quantum Cryptography Pilot Migration Support” project together with KEPCO KDN (CEO Park Sang-hyung) and KSIGN (CEO Koo Ja-dong).
The Korea Internet & Security Agency (KISA) launched the project in response to the need to migrate existing industrial cryptographic systems to post-quantum cryptography (PQC), preparing for threats posed by advances in quantum computing. If encryption protecting infrastructure closely connected to daily life is defeated, widespread social and economic losses could result nationwide.
The project supports companies and institutions seeking to migrate information systems in three sectors—energy, healthcare and public administration—to PQC. It aims to establish migration procedures and implementation examples through sector-specific pilots, while validating compatibility and interoperability with existing systems to lay the groundwork for a PQC ecosystem covering the entire process.
Lead contractor KEPCO KDN will work with SANDS Lab and KSIGN to conduct a pilot PQC migration and validation for AMI in the energy sector. Advanced Metering Infrastructure (AMI) is an open system for remotely reading and monitoring electricity consumption nationwide in real time. An attack exploiting quantum-vulnerable cryptography in AMI could cause not only personal information leaks and financial losses for consumers but also cascading disruption of national infrastructure, including financial system outages and large-scale blackouts. This makes PQC migration particularly urgent.
Photo 2. Architecture and conceptual diagram of PQC migration for the AMI system
Specialist companies with a strong understanding of AMI cryptography and practical experience will therefore undertake the project to implement a model covering all key PQC migration elements and validate the migration in practice. KEPCO KDN will build an AMI PQC migration demonstration environment; KSIGN will develop a hybrid authentication system to maintain compatibility with legacy systems; and SANDS Lab will develop the cryptographic migration management system.
The pilot will help establish a foundation for applying the approach not only to AMI infrastructure but also to national digital certificate infrastructure and private authentication PKI. It will also create an opportunity to lead quantum security technology, which remains at an early stage worldwide, while reducing the long-term cost of maintaining security amid frequent algorithm changes and improving operational efficiency.
CEO Kim Ki-hong said, “Electric power is as essential as water and air to daily life and industrial development, so companies must demonstrate both reliability and technological capability.” He added, “Using our AI NDR solution MNX, we plan to establish standards for monitoring PQC migration across industries and position it as a security assessment solution that supports the transition.”
SANDS Lab previously announced in March that it would jointly develop PQC technology with KSIGN. The companies plan to develop core security technologies needed for PQC migration through a hybrid approach combining KSIGN’s established encryption and authentication technologies with SANDS Lab’s innovative AI and network security technologies.