[Feature Stock] Xgate, 15% surge on expanded government PQC demonstration and initiation of core technology development

Xgate was driven by the government’s initiative to expand the demonstration transition policy for post-quantum cryptography (PQC), showing strong performance during trading hours. Analysts believe expectations that the quantum security market will soon expand comprehensively have already been reflected in the stock price.

Xgate traded 17,340 won on the Kosdaq market, up 2,330 won (15.52%) from the previous trading day.

According to the Ministry of Science and ICT, the government will expand its support program for PQC demonstration transition projects targeting major national infrastructure. It will broaden the scope from the original healthcare, energy, and administration sectors to five core areas: communication, finance, transportation, defense, and space. The government plans to work with the Institute for Information & Communications Technology Planning & Evaluation (IITP) to fully promote at the national level core PQC transition technology development projects by 2030.

The government plans to apply PQC to the National Science and Technology Research Network, card payment infrastructure, and the Ministry of Defense’s intelligent troop integrated platform, among others, to validate its performance and interoperability with existing systems in real service environments. The government will also advance the construction of a “DevOps-based autonomous transition open platform,” which will cover password asset detection and automatic transition to operational monitoring.

Xgate mainly supplies network security solutions such as VPNs, firewalls, and intrusion prevention systems (IPS). The company has obtained KCMVP certification for its hybrid cryptography module based on PQC and is currently supplying to the public and financial sectors quantum cryptography communication-linked VPN devices jointly developed with SK Telecom.

Previously, Xgate began expanding its business in the quantum security sector, broadening its related technology and product portfolio. What the market is watching is that, as the government expands empirical testing and officially moves forward with investment, it is expected to bring more relevant reference cases and order opportunities.