Korea Computer & Systems

What Korea Computer & Systems does

Korea Computer & Systems (KCS) is a Seoul-based, KOSDAQ-listed (ticker A115500) enterprise IT solutions provider founded in 2002 through a physical spin-off from Korea Computer Holdings, with operating lineage tracing to 1974. The company designs and integrates fault-tolerant IT infrastructure for Korean financial institutions, government agencies, and public enterprises, claiming 70%+ domestic market share in NonStop-based credit card authorization systems for issuers including KB Kookmin Card, Lotte Card, Samsung Card, Hana Card, Hyundai Card, and Woori Card.

KCS operates three revenue streams: (1) proprietary quantum and cryptographic hardware (KEV7 IoT crypto SoC, QKEV7 one-chip QRNG encryption chip, Q-HSM post-quantum HSM, and the KMC100C/QKGW Ethernet encryption device family built on QKEV7); (2) third-party enterprise product distribution and integration (HPE NonStop servers, Oracle Database/GoldenGate/Exadata, Thales HSM and CipherTrust, AhnLab network/endpoint security, ACI Worldwide payment middleware); and (3) system integration and maintenance services for large financial and government projects (e.g., Postal Service next-generation financial system, Railway IT, Boryeong smart city). Services revenue exceeds 50% of total revenue, providing a stable recurring cash flow base.

KCS's go-to-market is direct enterprise field sales backed by technical sales engineers, with go-to-market partnerships with SK Telecom and IDQ (ID Quantique) for quantum cryptography and X Quantum Alliance membership for ecosystem development. The company holds KCMVP Level 2 cryptographic module certification and government Security Function Confirmation, both of which are required for Korean public-sector and defense security procurement. The CEO is Kim Kwang-mook. KCS reports a 51-100 employee headcount and FY2023 revenue of approximately 295 billion KRW (down 38.1% YoY).

Name

Korea Computer & Systems

Legal name

주식회사 케이씨에스

Website

https://kcins.co.kr

Company type

Public

Founded year

2002

Operating status

Operating

Headcount range

51–100 employees

Short description

Korea Computer & Systems (KCS) is a KOSDAQ-listed Korean enterprise IT solutions provider specializing in fault-tolerant NonStop infrastructure, system integration, and proprietary quantum-resistant cryptographic chips for financial institutions, government agencies, and emerging IoT security markets.

Ownership category

akta.pro rank

Product category

Quantum Cryptography & Enterprise Security Hardware

NAICS

Computer Systems Design and Related Services (5415), Other Communications Equipment Manufacturing (334290)

SIC

Semiconductors & Related Devices (3674), Computer Communications Equipment (3576), Services-Computer Integrated Systems Design (7373)

akta.pro primary industry

Quantum-Safe Hardware & Embedded Security (TPM/secure elements/firmware) (HDAGAGAJ)

akta.pro secondary industries

Quantum-Safe PKI, Key Management & HSMs (HDAGAGAE), Secure Elements & Trusted Execution Processors (TPM/TEE/Crypto MCUs) (HDAHAJAK), Confidential Computing & Hardware-backed Protection (TEE/HSM) (HDADAFAJ), Quantum Key Distribution (QKD) Systems & Networks (HDAGAFAA), Secure Communications & Encryption for Utility Networks (VPN, PKI, Key Management) (EUADANAG)

Keywords

• Quantum cryptography chips
• System integration services
• Network encryption solutions
• Payment security hardware
• Enterprise IT security

Headquarters

HQ city

Mapo

HQ country

South Korea

HQ region

Asia

Offices2 records

Markets served

GTM type

B2B

Offering type

Hardware or Manufacturing

Cost components

Personnel, Technology or R&D, Operations, Supply Chain, Marketing or Sales, Infrastructure

Revenue model

1. Product Sales (Hardware/Software): Sales of proprietary cryptographic chips (KEV7, QKEV7), encryption modules (KMC100C, QKGW series), and third-party IT solutions (Oracle, Thales HSM, HPE NonStop). Hardware products include quantum crypto chips, network encryption devices, and financial terminal equipment.
2. Maintenance and Services: System maintenance, technical support, and service contract revenue from installed base. Services revenue has historically represented over 50% of total revenue (late 50% range for 2022-2023), providing stable recurring cash flow from financial and government sector clients.
3. System Integration (SI) Projects: Large-scale IT infrastructure projects including card authorization systems for credit card companies, banking systems, government SI projects. Projects range from billions to tens of billions of KRW per contract. Example: Boryeong smart city project ~7.2B KRW.
4. MICE Business: Conference, exhibition, and event management services including venue operations (Sanghwa-won on Boryeong island, Hankook Villa facilities). New growth initiative for the company.

Go-to-market motion1 record

Distribution channels3 records

Marketing channels4 records

Core offering

Korea Computer & Systems (KCS) designs and manufactures proprietary quantum-resistant cryptographic chips (KEV7, QKEV7, Q-HSM) and Ethernet packet encryption modules (KMC100C, QKGW100C, QKGW1000S), while also delivering fault-tolerant NonStop-based system integration for Korean credit card authorization, banking, and government IT infrastructure. The company distributes third-party enterprise solutions from Thales, Oracle, HPE, and AhnLab as an authorized Korean channel partner.

Product overview

KCS is a security-focused IT solutions company that develops and sells its own proprietary quantum cryptography hardware chips and encryption modules, while also distributing a portfolio of third-party enterprise software and hardware products. Its core proprietary product family is its quantum and crypto chip lineup — the KEV7 (lightweight IoT crypto SoC), QKEV7 (Korea's first quantum crypto chip integrating KEV7 with SKT-IDQ's QRNG), Q-HSM (world's first quantum chip with PQC), and the KMC100C/QKGW100C/QKGW1000S Ethernet packet encryption device family, all built around the QKEV7 chip for network security. The QC-VPN secures network segments for public/defense use. KCS also distributes and integrates third-party enterprise products including Oracle Database/GoldenGate/Exadata (database and CDC solutions), Thales HSM/CipherTrust Manager/Security Software (enterprise key management, data encryption, tokenization), AhnLab DPX/TG/V3/AIPS (network and endpoint security), HPE NonStop Servers and VLE (fault-tolerant computing), ACI Worldwide NET24/UPF/BASE24 solutions (payment processing), and IR Prognosis/XYGATE/IDF (system monitoring and NonStop security). KCS targets the Korean financial sector (card authorization, banking), public sector (transportation, government), and emerging quantum security markets (IoT, drones, smart homes, defense).

Differentiator

Problem solved

Functional benefit

Products and services

• KEV7 (SoC417) Crypto Chip Ultra-lightweight, low-power SoC cryptographic chip for IoT device encryption, supporting AES, ARIA, ECC, TRNG, and PUF anti-tampering. KCMVP Level 2 certified by Korean National Intelligence Service. Used in IP cameras, smart home devices, and IoT applications.
• QKEV7 Quantum Crypto Chip Korea's first quantum crypto chip integrating KCS's KEV7 encryption chip with SKT-IDQ's QRNG (Quantum Random Number Generator) on a single substrate. Supports AES, ARIA, ECC, SHA-256, HMAC, TRNG, QRNG, PUF. KCMVP Level 2 certified by National Intelligence Service. Used in Samsung Galaxy Quantum smartphones and IoT security devices.
• Q-HSM Quantum Hardware Security Module World's first quantum crypto chip combining hardware-based QRNG, PUF, and software-based Post-Quantum Cryptography (PQC) using NIST-standardized CRYSTALS-Kyber and CRYSTALS-Dilithium algorithms. Targets drone, CCTV, home network, and low-power IoT devices. Co-developed with SK Telecom.
• KMC100C Ethernet Packet Encryption Module Low-power IoT Ethernet packet encryption module using KEV7 and SKT-IDQ QRNG chips with approximately 9Mbps TCP/IP throughput. Supports PQC (Kyber, Dilithium), PUF, and QRNG. Operates at -40°C to 85°C for defense, public, and IoT security environments.
• QKGW100C Mid-Performance Ethernet Packet Quantum Encryption Mid-performance Ethernet packet quantum encryption solution (approximately 35Mbps throughput) using KEV7 and QRNG chip. High-performance alternative to KMC100C for device-level encrypted communication.
• QKGW1000S High-Performance Quantum Encryption Server Rack-type (3U) security server for high-performance Ethernet packet quantum encryption at approximately 500Mbps throughput. Manages and monitors KMC100C and QKGW100C client devices. KCMVP Level 2 and Security Function Verification certified.
• QC-VPN Quantum Cryptographic VPN Quantum cryptographic network segment encryption product (VPN) based on QKEV7 chip. Provides encrypted data communications for public institutions, defense, and smart infrastructure. Received government Security Function Verification certification. Supports hybrid key exchange (PKI, PQC, QKD).
• KMC100D Drone Quantum Encryption Module Drone-specific quantum encryption module integrating FC (Flying Controller) data encryption and video data encryption on a single board. Integrates KEV7 and IDQ S2Q000 QRNG chips. 42×61mm form factor for lightweight drone design.
• KMC100E Smart Home Video Encryption Module Video encryption module for smart home applications (apartment intercoms). 42×42mm low-power design with dual Ethernet ports for real-time video packet encryption. Enables IoT device authentication, digital door lock encryption, and white-list-based intrusion blocking.
• KGC100B Smart Home Crypto Gateway High-performance crypto gateway for smart home security management servers. Works with KMC100E for end-to-end encrypted communication between management server and apartment intercom systems without additional development process.
• System Integration (SI) Services System integration services for the financial sector including internet/smart banking, channel integration, mydata/open banking, public sector SI, and maintenance. Targets major Korean banks, credit card companies, and government institutions. Projects range from billions to tens of billions of KRW per contract.
• Enterprise Solution Services Enterprise solutions including NonStop business (financial host/FEP, next-generation card payment, disaster recovery), infrastructure monitoring, real-time business, management/security, and digital payment. Provided alongside NonStop server and third-party software products.
• ASIC Business (Application-Specific Integrated Circuit) ASIC business applying KCS's KEV7 and QKEV7 crypto chips to military, public infrastructure (electricity AMI, gas meters, water meters), and personal information protection applications (IP cameras, home networks, connected cars, drones, video phones).
• MICE Business (Conference & Event Venue) Conference, meeting, exhibition, and event management services operating Sanghwa-won traditional Korean garden venue and Hankook Villa accommodation facilities in Boryeong for corporate and government events and workshops.

Quantifiable outcome

• Over 70% market share in NonStop-based credit card authorization systems in Korea
• +4 more outcomes

Named customers18 records

Segments4 records

Ideal customer profiles3 records

Technology focussed Yes

API detail

Has API

Yes

API docs

API detail

Core technology

AI maturity

App detail

Integration53 records

AI capability5 records

Feature6 records

Partnerships

Eight partnerships are on record, tiered core and standard.

• SK Telecom (SKT)coreStrategic or Co-development Partner · 1 February 2023Joint development and commercialization of quantum cryptographic chip QKEV7. SKT provides QRNG (Quantum Random Number Generator) technology and PQC algorithms. KCS provides KEV7 encryption chip. QKEV7 received KCMVP Level 2 certification from National Intelligence Service in November 2023. Both companies co-developed Q-HSM (world's first PQC-equipped quantum chip) launched June 2024. KCS is a member of SKT's X Quantum alliance (Quantum Alliance), working on quantum security ecosystem expansion in defense, public infrastructure, and IoT markets.
• IDQ (ID Quantique)coreTechnology or Integration · 4 October 2020IDQ provides QRNG (Quantum Random Number Generator) chip technology integrated into KCS's quantum cryptographic products. IDQ is the global leader in quantum cryptography with #1 market position in quantum communication sales and patents. Jointly developed QKEV7 quantum cryptographic chip and Q-HSM. IDQ's S2Q000 QRNG chip is integrated into KCS's KEV7 cryptographic chip for quantum security solutions.
• ThalescoreChannel Partner/ Reseller/ DistributorKCS is an authorized distributor/reseller of Thales security products in Korea, including Payment HSM (payShield 10K), General Purpose HSM (Luna series), and CipherTrust Manager (Enterprise KMS) solutions. Provides sales, implementation, and technical support for Thales hardware security modules and data security platforms. Long-standing partnership since 2006 when Thales e-Security distribution agreement was established.
• OraclecoreChannel Partner/ Reseller/ DistributorKCS is an authorized partner for Oracle products including Oracle Database, Oracle GoldenGate (CDC - Change Data Capture), and Oracle Exadata. Provides system integration, implementation, and maintenance services. Extensive experience with GoldenGate deployments in financial institutions, government agencies, and telecommunications companies. Oracle GoldenGate Specialization Partner status.
• HPE (Hewlett Packard Enterprise)coreChannel Partner/ Reseller/ DistributorKCS is an authorized partner for HPE NonStop servers (Integrity NB series, NonStop X series) and related middleware solutions. Long-standing partnership since 1980 (as Korea Computer). Provides NonStop system sales, implementation, and maintenance. HP E-Korea partner status since 2004.
• AhnLabstandardChannel Partner/ Reseller/ DistributorKCS distributes AhnLab security solutions including TrustGuard IPX (AIPS - intrusion prevention), TrustGuard (TG - network security), DPX (DDoS protection), and V3 endpoint security. Provides AhnLab security appliance products for enterprise and government customers in Korea.
• X Quantum (엑스퀀텀)coreStrategic or Co-development PartnerQuantum industry alliance led by SK Telecom including KCS, SOS Lab (LiDAR), XGate (VPN), Woori LNS (SPAD), Nokia, and IDQ Korea. Established March 2024, officially named X Quantum in June 2024. Focuses on joint quantum technology product development, public sector project collaboration, and quantum security ecosystem expansion. KCS contributes quantum crypto chip technology for defense, public infrastructure, and IoT applications.
• Korea Computer Holdings (한국컴퓨터지주)coreOthersParent/holding company of KCS. KCS was spin-off from Korea Computer Holdings in December 2002 through physical division. KCS B/D is located in Mapo-gu, Seoul. Related companies include Korea Computer (LCD/PDP components), Hannet (附加值통신업), Logisys (financial terminal maintenance), and KCT (financial automation systems).

Scale indicators6 records

Recent moves9 records

Expansion highlights6 records

Direct peers

• AhnLab: Korean cybersecurity vendor (endpoint, network, DDoS); KCS distributes AhnLab products in Korea while also developing its own encryption/security portfolio, making AhnLab both a channel partner and a direct competitor in the domestic security market.
• QuintessenceLabs: Australia-based quantum cybersecurity company offering quantum random number generation and quantum key distribution solutions directly comparable to KCS's QKEV7 and QC-VPN product lines.
• ID Quantique (IDQ): Global #1 in quantum cryptography and KCS's QRNG technology partner. IDQ supplies the quantum random number generator chips integrated into KCS's QKEV7/Q-HSM products and competes in the same quantum-safe networking space.
• Utimaco: Independent HSM and key management vendor — a direct competitor to the Thales Luna/payShield products KCS distributes and a peer in the secure hardware space where KCS's Q-HSM competes.

Broad incumbents

• Thales (Thales e-Security / Thales DIS): KCS is a long-standing Korean distributor/integrator of Thales HSM and CipherTrust products, while Thales competes in the broader data security and key management market globally. Overlap in HSM, PKI, and data encryption makes Thales the closest broad incumbent peer.
• LG CNS: Major Korean SI and IT services company serving financial institutions and government — directly competitive with KCS in card authorization, banking systems, and public-sector IT integration.
• Samsung SDS: Large Korean IT services and system integration company that competes with KCS for major financial-sector and public-sector SI contracts (e.g., the SK C&C consortium-led postal financial system where KCS participated).

Emerging players

• Crypto4A Technologies: Developer of quantum-safe hardware security modules (HSM) — directly comparable to KCS's Q-HSM product. Both target post-quantum cryptography with FIPS-aligned certification roadmaps.
• MagiQ Technologies: Early-stage US-based quantum cryptography and key distribution vendor — an emerging peer with comparable quantum-safe networking technology positioning.

Regional players

• QuantumCTek: China-based quantum cryptography and QKD systems provider serving government and financial customers in China — a geographically separate but technically comparable peer in quantum-safe networking and certified crypto modules.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights6 records

Customer concentration

Compliance13 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Subsidiaries5 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Korea Computer & Systems