Uncertainty in Commercializing Quantum Technology... Industry Urges Government to Share Investment Risks

Korea Quantum Industry Association Highlights Need for Long-Term Investment Following SEED Selection
Joint R&D, Equity Investment, and Public-Private Partnerships... "Private Sector Alone Cannot Bear Investment Risks"

There are calls from the industry that the government should jointly bear the early-stage investment risks in the quantum technology sector, where private investment is relatively slow due to difficulties in predicting commercialization timelines. With the government selecting quantum technology as a future growth engine and planning not only joint research and development (R&D) but also equity investment and public-private joint investment, attention is focused on whether domestic investment in the quantum industry will take off in earnest.

The Korea Quantum Industry Association welcomed the government’s announcement on August 12 of the “Seven Major Future Growth Engine SEED Projects,” in which quantum technology was chosen as the “Next-Generation Frontier SEED,” by releasing a statement on August 13.

Quantum technology is a strategic technology applied to quantum computing, communications, and sensing, but the enormous initial R&D and facility investments required, as well as the long lead time to recover those investments, are cited as obstacles to industrialization. In particular, the industry explains that, for quantum computers, it is difficult to predict the point of commercialization or the market size, making it hard for individual companies to shoulder the long-term investment risks alone.

Accordingly, the association emphasized that there must be consistent national investment for at least the next 10 years, including talent nurturing and the establishment of research and facility infrastructure. It has also argued that, in the early stages of commercialization, a support system in which the government and private sector share investment risks is essential.

The government is considering various forms of support, such as joint R&D, equity investment, and public-private joint investment, through these seven SEED projects. The association expects that such approaches will reduce the initial investment burden on the private sector and help foster a domestic quantum industry ecosystem.

Sung-Hyuk Kim, President of the Korea Quantum Industry Association, stated, “Based on an ecosystem in which the industrial, academic, and research sectors organically collaborate, we will focus the capabilities of the quantum industry to ensure that the Seven Major SEED Projects can lead to tangible industrial achievements.”

This content was produced with the assistance of AI translation services.