Cryptolab Receives Minister of Defense Award for 'Encryption RAG'

– 2025 National Defense Experimental Project very best assignment 1st place … Awarded the Minister of National Defense Award

 – Decryption With the ' encrypted AI' that doesn't exist Security and Practical usability the same time Proof of identity , the Ministry of National Defense has been supplied with encrypted RAG technology.

Cryptolab ( CEO Jeong-hee Cheon ) , a homomorphic encryption source technology company, announced on the 15th that its "AI Model Encryption Technology Demonstration" project was selected as the best project (1st place) among the 2025 National Defense Experimental Projects and received a commendation from the Minister of National Defense. With this award, Cryptolab has been officially recognized for the applicability of its "encrypted AI" technology, which allows AI to be utilized without worrying about confidentiality leaks, to the defense field.

This project, part of the Ministry of National Defense's "Defense Innovation 4.0" strategy, focused on verifying the practical applicability of security technologies that enable AI utilization without concerns about confidential data leaks. Cryptolab developed an "encrypted AI model" using homomorphic encryption technology that enables AI analysis without decrypting data. This demonstrated that generative AI can be applied in practice while minimizing the risk of sensitive information leaks.

The demonstration was conducted in two areas. First, a generative encryption AI solution based on Search Augmented Generation (RAG) was implemented targeting defense documents, verifying the ability to search and utilize encrypted documents even in security-critical environments. Next, an object-recognition encryption AI model for unmanned security systems was developed, confirming its applicability in real-world operational environments such as surveillance and border patrol.

Significant performance gains were also achieved. Contrary to the conventional wisdom that encryption technology incurs significant computational delays, the system achieved a response speed that was virtually imperceptible to users in real-world environments. By simultaneously ensuring security and practical usability, the system demonstrated its potential for field application and technical feasibility, enabling near-real-time operational support.

Through this demonstration, the military has secured the technological foundation for leveraging civilian clouds and AI models without exposing confidential information to external parties. Cryptolab's homomorphic encryption technology has demonstrated that it can further strengthen the Zero Trust security system, which advocates "verification without trust" (Zero Trust), by protecting not only the data collection, storage, and transmission stages, but also the "computational stage" where AI actually processes the data.

Cryptolab plans to expand this technology to data protection in military LLM (Large Language Model) environments. Furthermore, Cryptolab's homomorphic encryption source technology is currently undergoing standardization with the International Organization for Standardization (ISO/IEC), with completion expected in the first half of 2026.

“I am delighted that the Minister of National Defense’s commendation and this selection have recognized that our technology has gone beyond the laboratory level and has both the performance and security required in the field of national security,” said Cheon Jeong-hee, CEO of CryptoLab. “Based on our proven technological prowess, we will expand the application of our technology beyond the defense sector to all industries that handle sensitive data, such as finance and healthcare.”