Homomorphic encryption source technology corporations Cryptolab said on the 15th that it was selected as the top project (No. 1) in the 2025 defense experimental program with its encryption RAG (retrieval-augmented generation)-based artificial intelligence (AI) technology and received a commendation from the Minister of the Ministry of National Defense.
The program is part of the Ministry of National Defense's "Defense Innovation 4.0" strategy and focused on verifying the real-world applicability of security technologies that allow AI use without concerns about confidential data leaks. Cryptolab said it applied homomorphic encryption technology to develop an "encrypted AI model" that can analyze data with AI without decrypting it (the process of unlocking encryption), minimizing the risk of sensitive information leaks.
The demonstration proceeded in two areas. First, it implemented a RAG-based generative encrypted AI solution for defense documents to verify whether search and use are possible in an encrypted state even in document environments requiring security. It then developed an object recognition encrypted AI model for unmanned security systems to confirm applicability in real operational environments such as surveillance and guard.
A company official said, "Through this demonstration, the military has secured a technical foundation to use private cloud and AI models without exposing confidential information externally." Cryptolab's homomorphic encryption technology protects not only the data collection, storage, and transmission stages, but also the "computation stage," where AI actually processes the data.
Cryptolab plans to expand the application of the technology as a data protection technology in large language model (LLM) environments in the military sector. The homomorphic encryption source technology owned by Cryptolab is currently undergoing standardization by the International Organization for Standardization/International Electrotechnical Commission (ISO/IEC), with completion expected in the first half of this year.
Chun Jeong-hee, Cryptolab's CEO, said, "Based on our proven technological capabilities, we will expand the application of the technology beyond the defense sector to industries that handle sensitive data, including finance and healthcare."